Which tax regime is better for salaried employees?

It depends on your deductions. If your total deductions under 80C, 80D, HRA, and other sections exceed ₹3-4 lakh, the old regime may be better. If deductions are minimal, the new regime usually results in lower tax due to its reduced slab rates and higher rebate.

What changed in tax slabs for FY 2025-26?

The new regime was restructured: basic exemption raised to ₹4L, and the Section 87A rebate limit increased to ₹12L (from ₹7L). This makes income up to ₹12L (₹12.75L for salaried with standard deduction) effectively tax-free.

Are FY 2026-27 tax slabs different from FY 2025-26?

No. Union Budget 2026 made no changes to income tax slabs. Both FY 2025-26 and FY 2026-27 have identical slab rates, rebate limits, and deduction rules under both regimes.

How does age affect income tax calculation?

Under the old regime, senior citizens (60–80) get a higher basic exemption of ₹3L, and super senior citizens (80+) get ₹5L instead of ₹2.5L. The new regime has no age-based benefit — the exemption is ₹4L for all.

Is HRA exemption available in the new tax regime?

No. HRA exemption is only available under the old regime. The new regime allows very limited deductions — only standard deduction of ₹75,000 and employer NPS contribution under Section 80CCD(2).

What is marginal relief in the new tax regime?

Marginal relief ensures that if your taxable income slightly exceeds ₹12L, the tax payable is capped at the amount by which your income exceeds ₹12L. This prevents a sudden jump in tax liability just above the rebate threshold.

Income Tax Calculator Results - Income Tax

🏆

Old Regime is Better for You

Recommended

You save ₹2,29,538.40 by choosing the Old Regime for FY 2025-26 (AY 2026-27).

Old Regime Tax

₹7,40,625.60

New Regime Tax

₹9,70,164.00

You Save

₹2,29,538.40

Best Regime

Old 📜

Tax Composition (Old Regime)

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Old vs New Regime Comparison

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📜 Old Regime Slab Breakdown

Exemption limit: ₹2,50,000.00

Slab	Rate	Tax
₹0 – ₹2.5L	0%	₹0.00
₹2.5L – ₹5.0L	5%	₹12,500.00
₹5.0L – ₹10.0L	20%	₹1,00,000.00
Above ₹10.0L	30%	₹5,99,640.00
Total Slab Tax		₹7,12,140.00

✨ New Regime Slab Breakdown

Exemption limit: ₹4L (all age groups)

Slab	Rate	Tax
₹0 – ₹4.0L	0%	₹0.00
₹4.0L – ₹8.0L	5%	₹20,000.00
₹8.0L – ₹12.0L	10%	₹40,000.00
₹12.0L – ₹16.0L	15%	₹60,000.00
₹16.0L – ₹20.0L	20%	₹80,000.00
₹20.0L – ₹24.0L	25%	₹1,00,000.00
Above ₹24.0L	30%	₹6,32,850.00
Total Slab Tax		₹9,32,850.00

Detailed Tax Comparison

Side-by-side breakdown of all components under both regimes for FY 2025-26

Component	Old Regime	New Regime	Notes
Gross Income	₹45,84,500.00	₹45,84,500.00	Total income before deductions
Total Deductions	₹15,85,700.00	₹75,000.00	Eligible deductions applied
Taxable Income	₹29,98,800.00	₹45,09,500.00	After deductions
Tax on Slabs	₹7,12,140.00	₹9,32,850.00	As per regime slab rates
Rebate u/s 87A	₹0.00	₹0.00	Income exceeds ₹12.0L limit
Tax after Rebate	₹7,12,140.00	₹9,32,850.00	Slab tax minus rebate/relief
Capital Gains Tax	₹0.00	₹0.00	STCG @15% + LTCG @10%
Surcharge	₹0.00	₹0.00	On income above ₹50L
Health & Education Cess (4%)	₹28,485.60	₹37,314.00	4% on tax + surcharge
Total Tax Payable	₹7,40,625.60	₹9,70,164.00	Final tax liability

📋 Profile Summary

Financial Year: FY 2025-26
Age Group: Below 60 years
Employment: Salaried
City Type: Metro
Gross Income: ₹45,84,500.00

📊 Deduction Comparison

Old Regime Deductions: ₹15,85,700.00
New Regime Deductions: ₹75,000.00
Standard Deduction: ₹50,000.00
HRA Exemption: ₹10,60,000.00
Professional Tax: ₹2,500.00
Section 80C: ₹1,50,000.00
Section 80CCD(1B): ₹50,000.00
Section 80D: ₹25,000.00
Home Loan Interest (Sec 24b): ₹2,00,000.00
Other Deductions: ₹48,200.00

🏠 HRA Breakdown

Actual HRA Received: ₹12,00,000.00
50% of Basic Salary (Metro (50%)): ₹12,00,000.00
Rent − 10% of Basic: ₹10,60,000.00
Exempt HRA: ₹10,60,000.00
Taxable HRA: ₹1,40,000.00

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