Should I pick the old or new tax regime for FY 2025-26?

New regime is default for AY 2026-27 with revised slabs (0% up to Rs 4L, 5% / 10% / 15% / 20% / 30%) and Rs 75K standard deduction. Old regime still allows 80C/80D/HRA/home-loan interest deductions. The calculator runs both side-by-side and recommends the lower tax — based on your actual deductions, not a rule of thumb.

Is HRA exemption available under the new regime?

No. HRA, LTA, 80C, 80D, professional tax deductions are all unavailable under the new regime. Only the standard deduction (Rs 75K) and 80CCD(2) (employer NPS) survive.

What are the new tax regime slabs for FY 2025-26?

0% up to Rs 4L; 5% Rs 4–8L; 10% Rs 8–12L; 15% Rs 12–16L; 20% Rs 16–20L; 25% Rs 20–24L; 30% above Rs 24L. Add 4% health and education cess on the tax.

Is the rebate available under the new regime?

Yes. Section 87A rebate of Rs 60,000 makes income up to Rs 12L effectively tax-free under the new regime for FY 2025-26 (Rs 12L − Rs 4L exempt = Rs 8L taxable; tax = Rs 60K; full rebate, net tax Rs 0).

Do I need to file an ITR if my income is below Rs 12L?

Filing is mandatory if your gross income exceeds the basic exemption limit (Rs 4L new regime / Rs 2.5L old) regardless of whether tax is payable after rebate. Filing also helps build credit history with banks for future loan applications.

How does Section 24(b) home loan interest deduction work?

Under the old regime, up to Rs 2L home loan interest deduction on self-occupied property; unlimited on let-out. Not available under the new regime — a key reason for high-tax bracket borrowers with home loans to stick to old regime.

Folio 28 · Income Tax Calculator

Income Tax Calculator

Reviewed by Jay Patel· Last reviewed: 01 Aug 2026

Jay Patel

Co-Founder & Chief Loan Advisor

Calculate your income tax under old and new regime.

What makes this calculator different

Side-by-side old vs new regime comparison for FY 2025-26 with the revised slabs and Rs 75K standard deduction; the 87A rebate is auto-applied; Section 24(b) home-loan interest input lets borrowers see whether the old regime still wins for them.

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