WebSoftOSIncome tax & TDS on salary calculator — old vs new regime
Under the new regime (FY 2025-26), salaried taxpayers get a ₹75,000 standard deduction and pay no tax on taxable income up to ₹12 lakh thanks to the Section 87A rebate. The old regime allows deductions such as 80C, 80D, HRA and home-loan interest. The regime with the lower total tax is better — this calculator computes both.
Result
| Taxable income — new regime | ₹14,25,000 |
|---|---|
| Tax payable — new regime (incl. cess) | ₹97,500 |
| Monthly TDS — new regime | ₹8,125 |
| Taxable income — old regime | ₹12,75,000 |
| Tax payable — old regime (incl. cess) | ₹2,02,800 |
| Monthly TDS — old regime | ₹16,900 |
| Lower tax under | New regime (saves ₹1,05,300) |
FY 2025-26 slabs. New regime: ₹75,000 standard deduction and Section 87A rebate up to ₹60,000 (no tax up to ₹12 lakh taxable, with marginal relief above). Old regime: ₹50,000 standard deduction, rebate up to ₹12,500 up to ₹5 lakh. Surcharge marginal relief is not modelled.
New regime slabs (FY 2025-26)
- ₹0–4 lakh: nil · ₹4–8 lakh: 5% · ₹8–12 lakh: 10% · ₹12–16 lakh: 15% · ₹16–20 lakh: 20% · ₹20–24 lakh: 25% · above ₹24 lakh: 30%.
- Rebate under 87A up to ₹60,000 when taxable income ≤ ₹12 lakh, with marginal relief just above.
- 4% health & education cess on tax plus surcharge.
Old regime slabs
- ₹0–2.5 lakh: nil · ₹2.5–5 lakh: 5% · ₹5–10 lakh: 20% · above ₹10 lakh: 30% (age below 60).
- Rebate up to ₹12,500 when taxable income ≤ ₹5 lakh.
Monthly TDS
Employers deduct the projected annual tax ÷ remaining months of the year, adjusted as declarations and proofs come in.
Frequently asked questions
Which tax regime is better for me?
If your deductions (80C, 80D, HRA, home loan) are small, the new regime is almost always better. With large HRA and home-loan interest the old regime can still win — enter your numbers above to see.
What is the standard deduction in FY 2025-26?
₹75,000 in the new regime and ₹50,000 in the old regime.
Can I switch regimes every year?
Salaried individuals without business income can choose each year when filing the return, regardless of what they told their employer for TDS.
More free resources
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