Does the new tax regime allow 80C and 80D?

No. Common deductions such as 80C and 80D are generally not available under the new regime, while salary standard deduction is available.

Is cess included in the tax comparison?

Yes. The calculator adds 4% health and education cess after slab tax and eligible rebate.

Does this include surcharge?

The tax engine includes ordinary-income surcharge and marginal relief, Section 87A relief and 4% cess. This comparison models resident salaried individuals below age 60. Special-rate income such as capital gains and professional tax are excluded.

Finance & Tax

Old vs New Tax Regime Calculator

Compare Indian income tax payable under old and new regimes for FY 2024-25 and FY 2025-26 with standard deduction, 80C, and 80D.

Key terms

Adjust inputs

Financial year

Annual gross salary

INR

1000005000000

Section 80C deductions

INR

0150000

Section 80D deductions

INR

0100000

Formula Explanation

Tax payable = slab tax after eligible rebate + 4% health and education cess

The old regime allows common deductions such as standard deduction, 80C, and 80D. The new regime limits most deductions but offers lower slabs, a salary standard deduction, and larger rebate eligibility.

Step-by-Step Example

1Calculate old-regime taxable income after standard deduction, 80C, and 80D.
2Calculate new-regime taxable income after the applicable standard deduction only.
3Apply the selected FY slab rates, then reduce tax by eligible Section 87A rebate.
4Add 4% cess and compare final tax payable under both regimes.

Sources & assumptions

Income Tax Department: AY 2026–27

FY 2025–26 slab and rebate reference. This calculator models ordinary salary income for resident individuals below age 60.

Reference

Benchmark Table

Compare common scenarios quickly. Scroll horizontally on smaller screens.

Reference 1

Gross Income: INR 8 L
Deductions: INR 1.75 L
FY 2024-25 Better: New regime
FY 2025-26 Better: New regime

Reference 2

Gross Income: INR 12 L
Deductions: INR 1.75 L
FY 2024-25 Better: Old regime often close
FY 2025-26 Better: New regime

Reference 3

Gross Income: INR 18 L
Deductions: INR 2.5 L
FY 2024-25 Better: Depends on deductions
FY 2025-26 Better: New regime often lower

Reference 4

Gross Income: INR 25 L
Deductions: INR 3 L+
FY 2024-25 Better: Old can compete
FY 2025-26 Better: Compare both

Gross Income	Deductions	FY 2024-25 Better	FY 2025-26 Better
INR 8 L	INR 1.75 L	New regime	New regime
INR 12 L	INR 1.75 L	Old regime often close	New regime
INR 18 L	INR 2.5 L	Depends on deductions	New regime often lower
INR 25 L	INR 3 L+	Old can compete	Compare both

FAQ

The better regime depends on income and deductions. FY 2025-26 new-regime slabs and rebate make the new regime attractive for many salaried taxpayers, but high deductions can still favor the old regime.

New Regime is better by

₹1,11,800.00

Details