New Regime (FY 2025-26)
| Up to ₹4 lakh | Nil |
| ₹4L – ₹8L | 5% |
| ₹8L – ₹12L | 10% |
| ₹12L – ₹16L | 15% |
| ₹16L – ₹20L | 20% |
| ₹20L – ₹24L | 25% |
| Above ₹24L | 30% |
Standard deduction ₹75,000. Rebate u/s 87A: full tax waived if taxable income ≤ ₹12L (rebate up to ₹60,000). No 80C/80D deductions.
Old Regime
| Up to ₹2.5 lakh | Nil |
| ₹2.5L – ₹5L | 5% |
| ₹5L – ₹10L | 20% |
| Above ₹10L | 30% |
Standard deduction ₹50,000. Allows 80C (up to ₹1.5L), 80D (up to ₹1L), HRA, home loan deduction. Rebate u/s 87A: ₹12,500 for income ≤ ₹5L.
📊 Worked Example — New Regime (FY 2025-26)
Gross salary: ₹12,00,000/year
Less: Standard deduction → ₹75,000
Less: Employee PF (12% × ₹15,000 × 12) → ₹21,600
Taxable income = ₹12,00,000 − ₹75,000 − ₹21,600 = ₹11,03,400
Tax on ₹0–4L → ₹0
Tax on ₹4L–8L @ 5% → ₹20,000
Tax on ₹8L–11.034L @ 10% → ₹30,340
Total tax = ₹50,340 → but taxable income ≤ ₹12L, so rebate u/s 87A applies
Tax after rebate (up to ₹60,000) → ₹0
Add: 4% Health & Education Cess → ₹0
Net tax payable = ₹0 🎉 (income under the ₹12L rebate threshold)
💡 If the same ₹12L gross used the Old Regime with ₹1.5L in 80C, HRA exempt ₹60,000:
Taxable = ₹12L − ₹50K std − ₹1.5L − ₹60K − ₹21,600 = ₹9,18,400 → Tax ≈ ₹1,03,680 + 4% cess = ₹1,07,827/year.
New regime saves ₹1,07,827 here — but this depends on your actual deductions.
Slabs as per Finance Act 2025 (Union Budget, February 2025). This calculator does not account for surcharge applicable on income above ₹50L. Verify with Form 16 or your CA for final TDS.