Financial Calculators
Income Tax Calculator
Compare income tax under the new and old regime for FY 2025-26 (AY 2026-27).
This tool provides an estimate or a starting draft. Check the assumptions and current official requirements before relying on the result. It does not replace qualified financial, legal or medical advice.
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Income tax planning is one of the most impactful financial decisions a salaried professional makes in India. For FY 2025-26, taxpayers can choose between the Old Tax Regime (with deductions) and the New Tax Regime (default, with lower rates and a higher standard deduction of ₹75,000). The New Regime is the default from AY 2024-25; you must explicitly opt for the Old Regime when filing your return or informing your employer.
Under the New Regime for FY 2025-26, income up to ₹3 lakh is tax-free, ₹3–7 lakh attracts 5%, ₹7–10 lakh attracts 10%, ₹10–12 lakh 15%, ₹12–15 lakh 20%, and above ₹15 lakh 30%. A full tax rebate under Section 87A eliminates tax for taxable income up to ₹7 lakh after the ₹75,000 standard deduction — effectively making gross income up to ₹7.75 lakh completely tax-free in the new regime.
The Old Regime retains all familiar deductions: Section 80C (PPF, EPF, ELSS, LIC — up to ₹1.5 lakh), 80D (health insurance premium), HRA exemption, home loan interest (Section 24), LTA, and more. For someone with significant deductions exceeding ₹3.75 lakh, the Old Regime can still result in lower tax. Our calculator computes both regimes side-by-side and tells you which saves more, based on your income and deductions.
How to use this utility
- Use the controls below—paste text, pick files, or adjust options as described on the tool.
- Click the main action button. Processing runs in your browser on this device.
- Download or copy the output. Check the processing note for any external services used by this operation.
Common use cases
- A software engineer earning ₹18 lakh CTC wants to decide between the new and old income tax regime before the financial year begins.
- A salaried person with a home loan, PPF investment, and health insurance needs to calculate their taxable income and tax payable after all deductions.
- A business owner filing ITR wants to estimate advance tax liability for the quarter.
- A fresher earning ₹7 lakh wants to know if they will pay any income tax in FY 2025-26 under the new regime.
- An HNI earning ₹50 lakh is evaluating whether deductions and exemptions in the old regime offset the higher tax rates.
Tips for best results
- 1If your total deductions (80C + 80D + HRA + home loan interest) exceed ₹3.75 lakh, the Old Regime is likely better. Below this threshold, the New Regime generally saves more tax.
- 2Inform your employer of your regime choice at the start of the financial year (usually April). This ensures correct TDS deductions throughout the year.
- 3Maximise 80C (₹1.5L): ELSS is the most tax-efficient option (3-year lock-in, market-linked returns). EPF, PPF, and term insurance premiums also count.
- 4Claim 80D: ₹25,000 for self and family health insurance, plus ₹25,000 for parents (₹50,000 if parents are senior citizens).
- 5Under the New Regime, the standard deduction of ₹75,000 is automatically applied. No action needed — just enter your gross income.
Frequently asked questions
- Is Konnect2Tools free?
- Yes. These in-browser tools are completely free to use with no account required for core functionality.
- Do my files leave my device?
- Browser document operations run locally, except where the operation uses an external service, such as AI summarisation. Read the processing note before using sensitive inputs.
- Is the Income Tax Calculator tool safe to use?
- Local operations process document content on your device. External-service operations may send inputs as described in the processing note. Keep originals and inspect the output.
- Can I switch between the old and new regime every year?
- Salaried individuals with no business income can switch between regimes every financial year when filing their ITR. Those with business income can switch to the Old Regime only once and cannot switch back.
- What is Section 87A rebate?
- Under the New Regime, if your taxable income (after standard deduction) is ₹7 lakh or less, you get a full rebate — no income tax at all. Under the Old Regime, the rebate applies if taxable income is ₹5 lakh or less. The rebate amount equals the tax payable, effectively reducing it to zero.
- What is marginal relief in income tax?
- Marginal relief prevents a situation where earning ₹1 extra results in paying more tax than the extra income. For example, if your income is ₹7,01,000 in the new regime, tax on the excess ₹1,000 cannot exceed ₹1,000. Our calculator applies marginal relief automatically for incomes just above ₹7 lakh.
- Is HRA available in the New Regime?
- No. HRA exemption under Section 10(13A) is available only in the Old Regime. If you pay high rent and receive a significant HRA, this is a strong reason to stay in the Old Regime. Use our HRA Calculator to find your exact exemption amount.
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