Old Regime vs New Regime — How to Decide
The central question for every salaried taxpayer in FY 2025-26. The New Regime has lower rates but strips away deductions; the Old Regime keeps deductions but charges higher rates.
| Feature | Old Regime | New Regime |
|---|---|---|
| Standard Deduction | ₹50,000 | ₹75,000 |
| Section 80C | Up to ₹1.5L | Not available |
| HRA Exemption | Available | Not available |
| Home Loan Interest (Sec 24) | Up to ₹2L | Not available |
| NPS Sec 80CCD(1B) | Up to ₹50K extra | Not available |
| Tax-free up to | ₹5L (with 87A rebate) | ₹12L (with 87A rebate) |
Rule of thumb
If your total deductions (80C + HRA + home loan interest + 80CCD(1B)) exceed roughly ₹4-4.5 lakh, the Old Regime typically saves more. Below that threshold, the New Regime almost always wins. Use the Income Tax Calculator above with your actual numbers to check precisely.
Key deadlines FY 2025-26
- Advance Tax (Q1): 15 June 2025
- Advance Tax (Q2): 15 September 2025
- Advance Tax (Q3): 15 December 2025
- Advance Tax (Q4): 15 March 2026
- ITR Filing (no audit): 31 July 2026
Source: Income Tax Department, India
About the Tax Calculator — Tax & Salary Guide
This free Tax Calculator is designed specifically for Indian users, using official formulas verified against government and authoritative sources. All calculations are updated for FY 2025-26. No sign-up, no download, and no charge — results are instant and displayed in Indian number format (lakhs and crores).
How to Use This Calculator
Enter your values in the input fields above and click the Calculate button. Results update immediately. You can modify any input and recalculate as many times as needed. All inputs are processed locally in your browser — your financial data is never transmitted to any server or stored anywhere.
Formula and Calculation Method
The Tax Calculator uses standard formulas used by Indian financial institutions, government departments, and regulatory bodies including the Reserve Bank of India (RBI), Income Tax Department, EPFO, and Ministry of Finance. Every formula is cross-verified against official calculators before publication. We update formulas with every budget announcement and policy change to ensure accuracy.
Understanding Your Results
Results from this calculator are indicative estimates based on the inputs you provide. Actual results may vary depending on changes in interest rates, tax laws, market conditions, and individual circumstances. For significant financial decisions — home purchase, retirement planning, tax filing — always consult a qualified SEBI-registered financial advisor or Chartered Accountant who can account for your complete financial situation.
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CalcuTools India is an independent, free calculator platform covering personal finance, income tax, salary, loans, investments, retirement planning, and health, with every formula verified against official sources. We are not affiliated with any bank, insurance company, NBFC, or financial products distributor. Our calculators are free from sales pressure or product promotion — our only interest is helping you make informed financial decisions with accurate tools.
CalcuTools India · Verified Indian Calculators · Updated July 2026 · FY 2025-26 · About Us · How We Verify · Editorial Policy · Disclaimer