Income Tax Calculator India FY 2025-26 - New Regime Tax Slabs & Calculation
TL;DR
The new tax regime for FY 2025-26 offers lower slab rates with a standard deduction of Rs 75,000 and Section 87A rebate making income up to Rs 7 lakh completely tax-free. For most salaried individuals without significant deductions under 80C/80D/HRA, the new regime saves more tax. Use our calculator to compare both regimes instantly. Key Facts:
- Standard deduction under new regime: Rs 75,000
- Section 87A rebate: Full tax rebate for income up to Rs 7,00,000
- No exemptions (80C, 80D, HRA) allowed under new regime
- 4% Health & Education Cess applies on total tax
- Surcharge: 10% (Rs 50L-1Cr), 15% (Rs 1Cr-2Cr), 25% (Rs 2Cr-5Cr)
New Regime Tax Slabs FY 2025-26
The revised tax slabs under the new regime (default regime from FY 2023-24 onwards) are:
| Income Slab | Tax Rate |
|---|---|
| Up to Rs 3,00,000 | Nil |
| Rs 3,00,001 - Rs 7,00,000 | 5% |
| Rs 7,00,001 - Rs 10,00,000 | 10% |
| Rs 10,00,001 - Rs 12,00,000 | 15% |
| Rs 12,00,001 - Rs 15,00,000 | 20% |
| Above Rs 15,00,000 | 30% |
Standard Deduction
Salaried individuals and pensioners get a flat Rs 75,000 standard deduction under the new regime. This means your taxable income is reduced by Rs 75,000 before applying slabs.
Section 87A Rebate
If your total taxable income (after standard deduction) is Rs 7,00,000 or less, you pay zero tax under the new regime. The rebate fully offsets the tax liability.
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Income Tax Calculation Formula
Taxable Income = Gross Income - Standard Deduction (Rs 75,000)
Tax Liability = Sum of tax at each slab rate
Total Tax = Tax Liability + Surcharge (if applicable) + 4% Cess
Step-by-Step Example: Rs 10,00,000 Salary
- Gross Income: Rs 10,00,000
- Standard Deduction: Rs 75,000
- Taxable Income: Rs 9,25,000
- Tax Calculation:
- Rs 0 - 3,00,000 = Rs 0
- Rs 3,00,001 - 7,00,000 = Rs 4,00,000 x 5% = Rs 20,000
- Rs 7,00,001 - 9,25,000 = Rs 2,25,000 x 10% = Rs 22,500
- Tax before cess: Rs 42,500
- Health & Education Cess (4%): Rs 1,700
- Total Tax: Rs 44,200
Old vs New Regime Comparison
Which regime saves more tax? It depends on your deductions. Here's a comparison at different salary levels assuming common deductions (80C: Rs 1.5L, 80D: Rs 25K, HRA: Rs 2L):
| Annual Salary | New Regime Tax | Old Regime Tax (with deductions) | Better Option |
|---|---|---|---|
| Rs 5,00,000 | Rs 0 | Rs 0 | Either |
| Rs 7,50,000 | Rs 0 (87A rebate) | Rs 0 (with deductions) | Either |
| Rs 10,00,000 | Rs 44,200 | Rs 46,800 | New Regime |
| Rs 15,00,000 | Rs 1,24,800 | Rs 1,17,000 | Old Regime |
| Rs 20,00,000 | Rs 2,80,800 | Rs 2,73,000 | Old Regime |
| Rs 50,00,000 | Rs 11,98,880 | Rs 12,22,400 | New Regime |
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Surcharge Rates on Income Tax
| Total Income | Surcharge Rate |
|---|---|
| Up to Rs 50,00,000 | Nil |
| Rs 50,00,001 - Rs 1,00,00,000 | 10% |
| Rs 1,00,00,001 - Rs 2,00,00,000 | 15% |
| Rs 2,00,00,001 - Rs 5,00,00,000 | 25% |
| Above Rs 5,00,00,000 | 25% (capped in new regime) |
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Tax-Saving Tips Under New Regime
Even though most deductions are removed, the new regime still allows:
- Standard deduction of Rs 75,000
- Employer's NPS contribution (Section 80CCD(2)) up to 14% of salary
- Family pension deduction up to Rs 15,000
- Agniveer Corpus Fund contribution (Section 80CCH)
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Frequently Asked Questions
Q: Is the new tax regime compulsory for FY 2025-26?
The new regime is the default regime from FY 2023-24 onwards. Salaried individuals can switch between old and new regime every year while filing ITR. However, if you have business income, you can only switch once.
Q: How does Section 87A rebate work in the new regime?
If your taxable income after standard deduction is Rs 7,00,000 or less, the entire tax liability (up to Rs 25,000) is waived as a rebate. You effectively pay zero tax. This means a gross salary of up to Rs 7,75,000 is tax-free under the new regime.
Q: Can I claim HRA exemption under the new regime?
No. HRA exemption under Section 10(13A) is not available in the new regime. Similarly, deductions under Section 80C, 80D, 80E, and most other exemptions cannot be claimed.
Q: What is the maximum tax-free income under the new regime for FY 2025-26?
With standard deduction of Rs 75,000 and Section 87A rebate, a salaried individual earning up to Rs 7,75,000 gross salary pays zero income tax under the new regime.
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