Income Tax Calculator India (FY 2025-26 & FY 2024-25)

The standard deduction for salaried individuals and pensioners under the New Tax Regime (Section 115BAC) is ₹75,000 for both FY 2025-26 and FY 2024-25. Under the Old Tax Regime, it remains ₹50,000.

No. The New Tax Regime does not allow standard itemized deductions such as Section 80C (PPF, ELSS, EPF, LIC), Section 80D (Health Insurance), Section 24b (Home Loan Interest for self-occupied property), or HRA exemption under Section 10(13A). In exchange, it offers substantially lower base tax slabs and an enhanced standard deduction.

For salaried employees under FY 2025-26 rules, total gross salary up to ₹12,75,000 incurs zero tax liability (due to the ₹75,000 standard deduction and full Section 87A rebate on taxable income up to ₹12,00,000). Under FY 2024-25 rules, gross salary up to ₹7,75,000 incurs zero tax liability (due to ₹75,000 standard deduction and Section 87A rebate up to ₹7,00,000).

The calculator computes your exact tax liabilities under both regimes in parallel, including 4% Health & Education cess. It then calculates the exact breakeven deduction threshold — the dollar-for-dollar level of exemptions you must claim in the Old Regime to match the New Regime.

Yes. Salaried individuals without business or professional income have the legal option to switch between the New and Old Tax Regimes every financial year at the time of filing their Income Tax Return (ITR-1 or ITR-2) under Section 139(1).

The breakeven deduction threshold — the minimum combined deductions at which the Old Regime tax equals the New Regime tax — typically falls between ₹3.75 Lakhs and ₹4.25 Lakhs for most salaried taxpayers in the ₹10L–₹20L income range. This includes the ₹50,000 standard deduction itself plus itemized items like Section 80C (max ₹1.5L), Section 80D, Section 24(b) home loan interest (max ₹2L), and HRA exemption. If your combined deductions exceed this threshold, the Old Regime saves more tax.

Marginal relief is a statutory provision that prevents a disproportionately large tax jump when income slightly exceeds a rebate threshold. Under the New Regime for FY 2024-25, if your taxable income exceeds ₹7,00,000 (after ₹75,000 standard deduction) by a small amount, the rebate under Section 87A phases out. For example, if your taxable income is ₹7,10,000 (₹10,000 above the ₹7L threshold), the calculated tax (₹27,500) would apply but marginal relief limits the effective incremental tax to the income above ₹7,00,000 (₹10,000), not the full notional tax.

Yes. Employer contributions to the National Pension System (NPS) under Section 80CCD(2) are one of the few deductions explicitly permitted under the New Tax Regime. Under Budget 2024, the deduction limit has been enhanced: salaried employees can claim employer NPS contributions up to 14% of Basic + DA (increased from 10%) for government employees, and up to 10% for private sector employees, whichever is applicable. This deduction reduces taxable income before computing New Regime slabs and can provide meaningful savings for those with active employer NPS contributions.