New Tax Regime Calculator – FY 2025-2026

New Tax Regime Slabs (2025-26)

Old vs New Tax Regime Slabs

What is New Tax Regime Calculator ?

Since we know that the new tax regime has been announced by the Indian Government, the main and most discussed thing was that you have to pay 0 tax until 12 lakh.
So, everything has changed now. You now need a new income tax calculator with the new tax slabs. That’s what the New Tax Regime Calculator does.
With this new tax regime calculator, you can easily calculate your tax.
In this new tax regime calculator, there is also a standard deduction section and other rebates, along with explanations on how the rebates will be applicable. Even marginal relief has been added to this calculator. You can easily calculate your income tax with help of this new tax regime calculator.

What is the Disadvantage of New Tax Regime?

There is nothing disadvantage in New Tax Regime.but yeah House Rate Allowence, Transport Allowence, Travel Allowence, Provident Fund, Employee Provident Fund, National Pension Scheme; These types of allowence exmeption you cannot claim that in New Tax Regime, in new tax regime you have to pay taxes on all your Income.

New Tax Regime vs Old Tax Regime — Which is Better for You?

The right choice depends entirely on your income level and how many deductions you can legitimately claim. Here is a practical framework: Choose the New Tax Regime if: — Your income is below ₹12,75,000 (you pay zero tax due to rebate + standard deduction) — You have few or no investments under 80C, 80D, or HRA — You prefer simplicity over tax planning — You are a freelancer or professional without significant deductible expenses Consider the Old Tax Regime if: — You are paying high rent in a metro city and claim significant HRA — You have maximised 80C investments (₹1.5 lakh) and 80D health insurance — You have a home loan and claim interest deduction under Section 24(b) — Your total deductions exceed ₹3.75 lakh (the point at which old regime becomes more beneficial for many taxpayers) For most salaried individuals earning below ₹15 lakh with standard investments, the New Tax Regime now offers lower tax. But always calculate both before filing.

Common Mistakes Taxpayers Make Under the New Tax Regime

1. Forgetting to check marginal relief eligibility If your income is between ₹12,00,001 and ₹12,75,000, you are entitled to marginal relief. Many taxpayers in this range pay the full slab tax without claiming relief they are owed. Use the Marginal Relief Calculator to verify your exact liability before filing.
2. Not declaring the regime choice to the employer Salaried employees must inform their employer which tax regime they are opting for at the start of the financial year. If you do not declare, your employer defaults to the new regime from FY 2025-26 onwards. You can still switch when filing your ITR, but your TDS deductions during the year may be incorrect.
3. Assuming 12 lakh is always tax-free The ₹12 lakh zero-tax benefit applies only under the New Tax Regime, and only for resident individuals. NRIs, companies, and firms are not eligible for the Section 87A rebate. Additionally, special rate income (capital gains, lottery winnings) does not qualify for the rebate even if your total income is below ₹12 lakh.
4. Ignoring Form 26AS before filing All TDS and TCS deducted during the year appears in your Form 26AS. If your employer deducted excess TDS, or if TCS was collected on foreign remittances, these credits reduce your final tax payable. Always verify Form 26AS before calculating the amount due.

Is HRA allowed in the New Tax Regime?

NO, HRA (House Rent Allownce ) cannot be cliamed under the new tax regime, you will have to pay taxes on your entire income without claming HRA Exemption.

Is 80C applicable in the New Tax Regime?

What does 80C mean? It refers to investments like PPF, life insurance, and other exempted investments that you used to show during ITR filing. However, in the new tax regime, Section 80C (which allows deductions for investments like PPF, life insurance premiums, and EPF) is not applicable.

Is 80D applicable in the New Tax  Regime?

Is Section 80D applicable under the new tax regime? The answer is no. Just like Section 80C, Section 80D, which used to provide deductions for premiums paid on health insurance policies, is not applicable under the new tax regime. Indian Goverment has Removed it all. It is true that in Under the old tax regime, you can claim deductions for your health insurance premiums, which helped reduce their taxable income. But in new tax regime, these deductionsare no longer available.

How is 12 Lakh Tax-Free?

This is the game of the 87A rebate. If you calculated your taxes on a 12 lakh income without the Section 87A rebate, it would be 60,000. Okay, so we all know that if our income is up to 12 lakh, then you are eligible for the Section 87A rebate. So, the Section 87A rebate amount deduction is 60,000, which will be deducted from your total taxes.
So, what is the total tax without Section 87A? 60,000, right? So, your taxes without Section 87A are 60,000. Then, minus this 60,000, since your income is up to 12 lakh, and you are eligible for a Section 87A deduction of 60,000.
So, 60,000 minus 60,000, and then your tax becomes zero.

How is 15 Lakh Tax-Free?

No, 15 lakh income is not tax-free. Up to 12 lakh income is tax-free. You have to pay zero taxes on this income. And if you are a salaried employee, then up to 12,75,000 your income would be tax-free because of the standard deduction. You are eligible for the standard deduction.

87A Rebate in New Tax Regime

Under the new tax regime for the financial year 2025–26 (Assessment Year 2026–27), the maximum rebate under Section 87A has been increased to ₹60,000. This rebate is available for resident individuals with a taxable income of up to ₹12 lakh. This means that if your taxable income is ₹12 lakh or less, you can reduce your tax liability by up to ₹60,000, this makes your tax zero,
But in the old tax regime, the 87A rebate amount was 25,000, and the threshold was 7 lakh. This means that if your income was up to 7 lakh, you were eligible for an 87A rebate of 25,000.

From when will the New Tax Regime be Applicable?

New Tax slabs come in effect in April 1, 2025, for the financial year 2025-26.

Marginal Relief Limit in New Tax Regime |

If your income is more than 12 lakh and less then 12 lakh 75 thousands, then Marginal Relief Apply, okay ! then you are eligible for Marginal Relief.

Standard Deduction in New Tax Regime

Standard Deduction in the New Tax Regime is 75,000. This means that if you are a government employee or a salaried person, then you are eligible for the standard deduction. This standard deduction makes your income up to  12,75,000, reduced to zero tax. This is the power of the standard deduction. In the old tax regime, the standard deduction amount was 50,000, but it has been increased by the Government of India to 75,000.