Income Tax in India
Income tax in India is levied on the income earned by individuals, businesses, and other entities. For salaried employees, tax is deducted at source (TDS) by the employer based on declared investments. You can choose between the Old Tax Regime (with deductions) and the New Tax Regime (lower rates, no deductions).
Old vs New Tax Regime
Old Regime: Allows deductions under 80C (₹1.5L), 80D (health insurance), HRA, home loan interest, etc. Suitable for those with significant investments and loans.
New Regime: Lower tax rates but no major deductions (except standard deduction ₹50,000). Suitable for those without many deductions or investments.
New Regime Tax Slabs (FY 2025-26)
- ₹0 – ₹3,00,000 — Nil
- ₹3,00,001 – ₹6,00,000 — 5%
- ₹6,00,001 – ₹9,00,000 — 10%
- ₹9,00,001 – ₹12,00,000 — 15%
- ₹12,00,001 – ₹15,00,000 — 20%
- Above ₹15,00,000 — 30%
Old Regime Tax Slabs
- ₹0 – ₹2,50,000 — Nil
- ₹2,50,001 – ₹5,00,000 — 5%
- ₹5,00,001 – ₹10,00,000 — 20%
- Above ₹10,00,000 — 30%
Example: ₹10 Lakh Income
- Old Regime: ~₹1,17,000 (with deductions)
- New Regime: ~₹75,000
- New Regime saves ₹42,000 if no deductions
Which Regime Should You Choose?
If your deductions (80C + 80D + HRA + home loan) exceed ₹3-4 lakh, Old Regime may be better. Otherwise, New Regime is usually simpler and cheaper. Use our calculator to compare both for your exact income.
Why Use Our Tax Calculator?
Instant comparison of both regimes with accurate FY 2025-26 slabs. Plan your taxes in seconds, no signup required.