Income Tax Calculator FY 2025-26 & FY 2024-25
Compare your income tax liability under the Old vs New Tax Regime for Financial Year (FY) 2025-26 (Assessment Year 2026-27) and FY 2024-25 (AY 2025-26) with the latest tax slabs.
Recommendation
Choose the New Regime!
By selecting the New Regime, you will save approximately ₹2,00,200 in income tax payments for the financial year 2025-26.
How to Use the Income Tax Calculator
- Select your age bracket: Regular (under 60), Senior (60 to 79), or Super Senior (80 or older) as tax slabs vary for the Old Regime.
- Under Income Details, input your annual gross salary, other income (interest, dividend, etc.), net house rental profits, and business income.
- Under Tax Deductions, type your investments and exemptions like Section 80C (PPF, ELSS, insurance), 80D (health cover), HRA, or home loan interest.
- Review the side-by-side table that breaks down taxable income, rebates, cesses, and details the regime that saves you the most money.
Income Tax Slabs for FY 2024-25 & FY 2025-26
The tax rates differ significantly depending on the financial year and tax regime. The slabs are structured as follows:
New Regime (FY 2025-26 / Latest)
- Up to ₹4,00,000 — Nil
- ₹4,00,001 to ₹8,00,000 — 5%
- ₹8,00,001 to ₹12,00,000 — 10%
- ₹12,00,001 to ₹16,00,000 — 15%
- ₹16,00,001 to ₹20,00,000 — 20%
- ₹20,00,001 to ₹24,00,000 — 25%
- Above ₹24,00,000 — 30%
New Regime (FY 2024-25)
- Up to ₹3,00,000 — Nil
- ₹3,00,001 to ₹7,00,000 — 5%
- ₹7,00,001 to ₹10,00,000 — 10%
- ₹10,00,001 to ₹12,00,000 — 15%
- ₹12,00,001 to ₹15,00,000 — 20%
- Above ₹15,00,000 — 30%
Old Regime Slabs (Under 60)
- Up to ₹2,50,000 — Nil
- ₹2,50,001 to ₹5,00,000 — 5%
- ₹5,00,001 to ₹10,00,000 — 20%
- Above ₹10,00,000 — 30%
Difference Between Financial Year (FY) and Assessment Year (AY)
It is common for taxpayers to get confused between the Financial Year and the Assessment Year. Here is the simple distinction:
- Financial Year (FY): The year in which you earn your income. It starts on April 1st and ends on March 31st of the following calendar year. For example, if you earned salary between April 1, 2025 and March 31, 2026, your Financial Year is FY 2025-26.
- Assessment Year (AY): The year in which your earned income is assessed, declared, and taxed when filing your Income Tax Return (ITR). This is always the consecutive year following the FY. For FY 2025-26, the corresponding Assessment Year is AY 2026-27.
When selecting the financial year in the calculator, remember that the tax slabs of FY 2025-26 (AY 2026-27) represent the latest rules under the direct tax code, whereas FY 2024-25 (AY 2025-26) represents the tax rules for the previous assessment filing cycle.
New Regime vs Old Regime: Which is Better?
Choosing the right tax regime depends heavily on the deductions and exemptions you claim. The Old Tax Regime allows you to reduce your taxable income using investments like Public Provident Fund (PPF), Equity Linked Savings Schemes (ELSS), Employee Provident Fund (EPF), National Pension System (NPS), medical insurance premiums, rent paid (HRA), and home loan interest. If your total claims exceed ₹3.75 Lakhs to ₹4 Lakhs annually, the Old Tax Regime may result in lower tax outgo.
Conversely, the New Tax Regime has been designed as the default option with significantly lower tax rates and wider tax slabs. Since Union Budget 2024, the standard deduction is ₹75,000, and taxable income up to ₹7 Lakhs has zero tax due to Section 87A rebate. For taxpayers who do not invest heavily in locked-in products, the New Regime simplifies filings and provides immediate cash flow savings.
Frequently Asked Questions
What is the standard deduction for FY 2025-26 and FY 2024-25?
The standard deduction for salaried employees is ₹75,000 under the New Tax Regime (since FY 2024-25) and remains ₹50,000 under the Old Tax Regime.
At what income is there zero tax under the New Tax Regime in FY 2025-26?
For FY 2025-26, no tax is payable under the New Tax Regime on taxable income up to ₹12,00,000 due to the Section 87A rebate (up to ₹60,000). For salaried individuals, adding the ₹75,000 standard deduction means a gross salary up to ₹12,75,000 is completely tax-free. For FY 2024-25, the tax-free taxable income threshold is ₹7,00,000.
Can I claim 80C and HRA deductions under the New Tax Regime?
No. The New Tax Regime offers lower tax rates but requires you to forego most exemptions and deductions, including Section 80C (PPF, ELSS, EPF), Section 80D (health insurance), House Rent Allowance (HRA), Leave Travel Allowance (LTA), and home loan interest on self-occupied properties.
What is the difference between Financial Year (FY) and Assessment Year (AY)?
Financial Year (FY) is the year in which you earn the income (starts April 1 and ends March 31). Assessment Year (AY) is the following year in which that income is declared and evaluated for ITR filing. For example, the tax slabs of FY 2025-26 correspond to AY 2026-27.