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AI-PoweredBudget 2024Updated for Latest Income Tax (Budget 2024 / Sec 115BAC) & GST Rules · 100% Free

Income Tax Calculator

Old vs New regime side-by-side comparison for FY 2025-26 & 2026-27 with Sec 87A rebate and ₹75k standard deduction.

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Annual Income & Deductions

0

Allowed in BOTH Old & New regimes (up to 14% of Basic + DA as enhanced in Budget 2024).

Old Regime Deductions (Ignored in New Regime)

Max ₹1.5L
Max ₹1L

ℹ️ Budget 2024 Updates: Standard deduction raised to ₹75,000 for salaried in the New Regime. Full tax rebate under Section 87A applies up to ₹7,00,000 taxable income, with marginal relief capping tax for incomes slightly above ₹7 Lakhs.

CA Comparative VerdictAY 2025-26 & 2026-27

Recommended Choice

New Regime

You save ₹7,020 in taxes!

New Regime

6.0% eff.

71,500

In-Hand: 94,042/mo

Old Regime

6.5% eff.

78,520

In-Hand: 93,457/mo

New Regime Taxable Income:11,25,000
Old Regime Taxable Income:8,15,000
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Statutory Guide & Methodology

Understanding Income Tax Calculator

The Income Tax Calculator compares your statutory tax liability under both the default New Tax Regime (Section 115BAC) and the Old Tax Regime. Budget 2024 restructured the New Regime tax slabs and increased the standard deduction for salaried taxpayers to ₹75,000.

Under Section 87A rebate, resident individuals with net taxable income up to ₹7,00,000 under the New Regime pay zero tax. Combined with the ₹75,000 standard deduction, salaried gross income up to ₹7,75,000 is 100% tax-free.

Core Calculation FormulaOfficial Rule
Taxable Income = Gross Income - Deductions | Tax = Slab Rates + 4% Health & Education Cess
New Regime Slabs: ₹0–3L: Nil; ₹3–7L: 5%; ₹7–10L: 10%; ₹10–12L: 15%; ₹12–15L: 20%; >₹15L: 30%
Standard Deduction: ₹75,000 for salaried employees in New Regime (₹50,000 in Old Regime)
Section 87A Rebate: Up to ₹25,000 rebate if taxable income ≤ ₹7,00,000 in New Regime

* Health and Education Cess is levied at a flat 4% on the aggregate income tax amount.

Key Regulatory Rules & Thresholds (FY 2025–27)

Essential departmental provisions, tax brackets, and statutory compliance mandates.

Default Regime Status

Budget 2024

The New Tax Regime under Section 115BAC is the default statutory regime for all taxpayers unless explicitly opted out via Form 10-IEA.

Breakeven Deductions Threshold

Tax Planning

If your eligible deductions (80C, 80D, HRA, Home Loan Interest Sec 24b) exceed ~₹3.75 Lakhs to ₹4.0 Lakhs, the Old Regime may yield higher net savings.

Revised Capital Gains Rates

Finance Act 2024

LTCG on listed equity/equity funds is 12.5% on gains > ₹1.25 Lakhs. STCG is taxed at flat 20% under Section 111A.

Section 234F Late Filing Penalty

Sec 234F

Filing after July 31st incurs a mandatory ₹5,000 penalty (₹1,000 if income ≤ ₹5L) and forfeits loss carry-forward rights.

Frequently Asked Questions

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