Income Tax Calculator — New Regime FY 2025-26

The New Tax Regime was made the default option from FY 2023-24. Under the Budget 2025 updates, the tax slabs were significantly widened to provide more relief to middle-income taxpayers. The standard deduction remains at ₹75,000. The key advantage of the New Regime is simplified tax filing — you don't need to track investments and deductions. The key disadvantage is losing deductions under 80C, 80D, HRA, and other sections.

If you choose the Old Regime, maximize deductions: invest ₹1.5L in 80C (ELSS/PPF), take health insurance for 80D, claim HRA if applicable, and utilize home loan interest under Section 24(b). If you choose the New Regime, focus on maximizing employer NPS contribution (80CCD(2)) — the only major deduction available. Regardless of regime, invest your tax savings in growth assets like equity mutual funds via SIP for long-term wealth creation.