Compare the new and old tax regimes side-by-side for FY 2025-26 (AY 2026-27). Includes Section 87A rebate, marginal relief, surcharge, 4% cess, and all major deductions — 80C, 80D, HRA, home loan, NPS.
Same slabs — Budget 2026 left rates unchanged.
EPF, PPF, ELSS, LIC, tuition
Health insurance premium
Calculated separately
Sec 24(b), self-occupied
80E, 80G, 80EEA, etc.
When new regime wins
You don't claim large deductions, OR your income is at or below ₹12 lakh (zero tax under 87A rebate), OR your total deductions are under roughly ₹3 lakh.
When old regime wins
You max out 80C (₹1.5L) AND have home loan interest (up to ₹2L) AND meaningful HRA. Combined deductions above ~₹4L on income above ₹15L typically favor old regime.
Important notes
Once chosen, you can switch regimes every year (salaried) or only twice in a lifetime (business income). Surcharge applies above ₹50L. Special-rate income (capital gains, lottery) doesn't get 87A rebate.
Under the new tax regime for FY 2025-26 (AY 2026-27): 0% up to ₹4 lakh, 5% on ₹4-8 lakh, 10% on ₹8-12 lakh, 15% on ₹12-16 lakh, 20% on ₹16-20 lakh, 25% on ₹20-24 lakh, and 30% above ₹24 lakh. Standard deduction is ₹75,000 for salaried individuals. Income up to ₹12 lakh effectively pays zero tax due to the Section 87A rebate of up to ₹60,000.
Under the old tax regime: 0% up to ₹2.5 lakh, 5% on ₹2.5-5 lakh, 20% on ₹5-10 lakh, and 30% above ₹10 lakh. Standard deduction is ₹50,000. Major deductions like 80C (up to ₹1.5 lakh), 80D, HRA, home loan interest (up to ₹2 lakh), and NPS 80CCD(1B) (up to ₹50,000) are allowed. The 87A rebate of ₹12,500 makes income up to ₹5 lakh tax-free.
The new regime is better for most salaried taxpayers without significant deductions because of the ₹12 lakh tax-free threshold. The old regime is better if your combined deductions (80C + 80D + HRA + home loan interest + NPS) exceed roughly ₹3-4 lakh, depending on income level. This calculator computes both and shows which saves you more — fill in your actual deductions to see the right answer for you.
Marginal relief ensures that taxpayers whose income slightly exceeds ₹12 lakh don't pay disproportionately higher tax. If your taxable income is ₹12.10 lakh, your tax would be ₹61,500 without marginal relief but only ₹10,000 with it (equal to the income exceeding ₹12 lakh). This calculator applies marginal relief automatically.
Surcharge is an additional tax on high incomes. Rates: 10% for taxable income ₹50 lakh to ₹1 crore, 15% for ₹1-2 crore, 25% for ₹2-5 crore, and 25% above ₹5 crore under the new regime (37% under the old regime). It's calculated on the tax amount and a 4% health and education cess is applied on top.
For FY 2025-26 (AY 2026-27), the due date for individual taxpayers without a tax audit is 31 July 2026. For those requiring a tax audit, the due date is 31 October 2026. Filing after the due date attracts late fees and interest under Sections 234A/B/C.
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