Calculate exact income tax under New and Old Regime. Zero tax up to ₹12 Lakh in New Regime (Budget 2025). Budget 2026 made NO changes — same slabs for FY 2026-27 also.
✅ Zero Tax up to ₹12L (New Regime)📊 New vs Old Comparison🎯 Which Regime Saves More — Instant Verdict📋 FY 2025-26 & FY 2026-27
💡 Quick Fact: Zero income tax up to ₹12L in New Regime! Salaried up to ₹12.75L also pay zero tax.
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Details
🟢 New Regime
🔵 Old Regime
Gross Income
Standard Deduction
₹75,000
₹50,000
Other Deductions
₹0
Taxable Income
Tax Before Cess
Rebate u/s 87A
💰 Final Tax + Cess
Monthly TDS (New Regime):
Monthly TDS (Old Regime):
📋 Income Tax Slabs — FY 2025-26 & 2026-27 (Budget 2026: No changes)
Income Slab
Tax Rate
Tax on Slab
Up to ₹4,00,000
Nil
₹0
₹4,00,001 – ₹8,00,000
5%
Up to ₹20,000
₹8,00,001 – ₹12,00,000
10%
Up to ₹40,000
₹12,00,001 – ₹16,00,000
15%
Up to ₹60,000
₹16,00,001 – ₹20,00,000
20%
Up to ₹80,000
₹20,00,001 – ₹24,00,000
25%
Up to ₹1,00,000
Above ₹24,00,000
30%
30% of amount above ₹24L
✅ Rebate u/s 87A: Zero tax if taxable income ≤ ₹12L |
✅ Standard Deduction: ₹75,000 for salaried |
✅ Effectively tax-free: Up to ₹12.75L for salaried (after std deduction)
Income Slab (Below 60)
Tax Rate
Income Slab (Senior 60–79)
Tax Rate
Up to ₹2,50,000
Nil
Up to ₹3,00,000
Nil
₹2.5L – ₹5L
5%
₹3L – ₹5L
5%
₹5L – ₹10L
20%
₹5L – ₹10L
20%
Above ₹10L
30%
Above ₹10L
30%
🔵 Standard Deduction: ₹50,000 |
🔵 80C Deduction: Up to ₹1.5L |
🔵 Rebate u/s 87A: Zero tax if income ≤ ₹5L |
🔵 HRA, 80D, Home Loan: Additional deductions available
Income Tax Guide FY 2025-26 & 2026-27
📢 Budget 2026 Update:Finance Minister Nirmala Sitharaman presented Budget 2026 on February 1, 2026. No changes were made to income tax slabs. FY 2026-27 uses the same slabs as FY 2025-26. Also, the Income Tax Act 2025 comes into effect from April 1, 2026 — simplifying provisions but not changing rates.
Zero Tax Up to ₹12 Lakh — How?
Under the New Tax Regime, a Section 87A rebate of ₹60,000 is available. This means any tax calculated up to ₹12 lakh taxable income is fully cancelled by the rebate. So zero tax is payable. For salaried individuals, after the ₹75,000 standard deduction, gross salary up to ₹12.75 lakh is effectively tax-free.
New Regime vs Old Regime — Which is Better?
Income
New Regime Tax
Old Regime (80C+HRA)
Better Option
Up to ₹12L
₹0 (Zero!)
₹0–₹70,200
🟢 New Regime
₹12.75L (Salaried)
₹0 (Zero!)
₹93,600
🟢 New Regime
₹15L (min deductions)
₹1,17,000
₹1,87,200
🟢 New Regime
₹15L (max deductions)
₹1,17,000
₹93,600
🔵 Old Regime
₹20L (high HRA+80C+loan)
₹2,34,000
₹1,56,000
🔵 Old Regime
*Calculations approximate. Use the calculator above for your exact situation.
What Deductions Are Allowed in New Regime?
The New Regime allows very few deductions: Standard deduction ₹75,000 (salaried), Employer NPS contribution under 80CCD(2) up to 14% of salary (Govt) or 10% (Private), and a few others. Most major deductions like 80C, HRA, 80D, Home loan interest are NOT allowed in New Regime.
What Deductions Are Allowed in Old Regime?
Old Regime allows: 80C (PF, ELSS, LIC, PPF) up to ₹1.5L, 80D (Health insurance) up to ₹25K–1L, HRA exemption (if renting), Home loan interest under 24(b) up to ₹2L, NPS 80CCD(1B) extra ₹50K, LTA, and many more. Total deductions can be ₹3–5 lakh for many salaried employees.
ITR Filing Due Date FY 2025-26
The due date to file ITR for FY 2025-26 (AY 2026-27) is July 31, 2026. Budget 2026 also extended the revised return deadline to 31 March (from earlier 31 December). A nominal fee applies for late revised returns after the 9-month window.
❓ Income Tax FAQs
How much income tax on ₹10 lakh salary in 2025-26?▼
Under New Tax Regime: ₹0 (ZERO). Because taxable income = 10L - ₹75K std deduction = ₹9.25L which is under ₹12L rebate limit. Under Old Regime: Depends on deductions. With full 80C (₹1.5L), taxable = 10L - 50K std - 1.5L = ₹8L. Tax = ₹75,400. New Regime is clearly better here.
Is income up to ₹12 lakh really tax-free in 2025-26?▼
Yes! Under New Tax Regime. The Section 87A rebate was enhanced to ₹60,000 in Budget 2025. So if your taxable income (after standard deduction) is up to ₹12L, the entire tax is cancelled by the rebate. Important: this is for regular income only. Special income like capital gains is not covered by this rebate.
Did Budget 2026 change income tax slabs?▼
No. Finance Minister Nirmala Sitharaman presented Budget 2026 on February 1, 2026 and made NO changes to income tax slab rates. FY 2026-27 uses the exact same slabs as FY 2025-26. The main change was the new Income Tax Act 2025 coming into effect from April 1, 2026 — which simplifies provisions but does NOT change tax rates.
What is the tax on ₹15 lakh salary in new regime?▼
For most people earning up to ₹15L with moderate deductions, New Regime is now better. Switch if your Old Regime deductions (80C+HRA+home loan etc.) are less than ₹3.5L. Keep Old Regime if you have very high deductions — e.g., ₹1.5L 80C + big HRA + ₹2L home loan interest. Use our calculator above to compare for your exact numbers.
Can I change tax regime every year?▼
Salaried employees can switch between Old and New Regime every year while filing ITR. However, if you have business income, you can only switch once. Inform your employer at the start of the year which regime to use for TDS, but you can always revise your choice while filing ITR.
Choose New Regime if: income under ₹12L (zero tax anyway), total deductions under ₹2L, no home loan, no large HRA. New regime has lower tax rates: 5% on ₹4-8L, 10% on ₹8-12L, 15% on ₹12-16L, 20% on ₹16-20L, 25% on ₹20-24L, 30% above ₹24L.
Who should choose Old Tax Regime?▼
Choose Old Regime if: income above ₹15L with deductions of ₹3L+ (80C ₹1.5L + 80D ₹25K + HRA ₹1L+ + home loan interest ₹1.5L+). Old regime benefits those who have maximized all deductions.
Is 87A rebate available in new regime for ₹12 lakh income?▼
Yes. Under new regime, if taxable income (after ₹75K standard deduction) is ₹12 lakh or below, Section 87A rebate of ₹60,000 applies — making effective tax ZERO. So someone earning ₹12.75L gross salary pays zero tax under new regime.