New Tax Regime Calculator 2025-26

New Tax Regime Calculator FY 2025-26

Calculate your income tax liability under the updated tax slabs introduced by Finance Act 2025. Features dynamic deduction entries, ₹75k standard deduction, and enhanced ₹60k rebate u/s 87A. Fully optimized for Google Search and Blogger integration.

Keywords: New Tax Regime 2025, Updated Tax Slabs, Section 87A Rebate, Standard Deduction, Blogger Tax Calculator

Total Income (₹):

Deductions:

Tax Breakdown (New Regime):

Taxable Income: ₹0

Tax Before Rebate: ₹0

Rebate u/s 87A: ₹0

Health & Education Cess: ₹0

Net Tax Payable: ₹0

How It Works

1. Enter total income from all sources
2. Add deductions using dynamic entries
3. Automatic ₹75k standard deduction applied
4. Tax calculated with updated slab rates
5. ₹60k rebate applied if income ≤ ₹12L

How the New Tax Regime 2025 Affects Salaried Employees

Overview

The Finance Act 2025 has introduced significant changes for salaried employees, making the new tax regime the default option for most taxpayers from FY 2025-26. The new regime aims to simplify tax calculations, increase take-home pay, and reduce the need for complex tax planning.

Key Features of the New Tax Regime for Salaried Employees

• Higher Basic Exemption & Progressive Slabs:
  • Income up to ₹4 lakh: Nil
  • ₹4,00,001 – ₹8,00,000: 5%
  • ₹8,00,001 – ₹12,00,000: 10%
  • ₹12,00,001 – ₹16,00,000: 15%
  • ₹16,00,001 – ₹20,00,000: 20%
  • ₹20,00,001 – ₹24,00,000: 25%
  • Above ₹24,00,000: 30%
• Standard Deduction: Salaried employees automatically get a standard deduction of ₹75,000, increasing the effective tax-free income to ₹12.75 lakh.
• Enhanced Section 87A Rebate: If your taxable income (after standard deduction) does not exceed ₹12 lakh, you get a rebate of up to ₹60,000, making your tax liability zero if your income is up to ₹12.75 lakh.
• No Most Deductions/Exemptions: Popular deductions like 80C, 80D, HRA, LTA, and home loan interest are not allowed. Only the employer’s contribution to NPS under section 80CCD(2) is permitted.

Impact on Salaried Employees

• Zero Tax up to ₹12.75 Lakh: Most salaried employees with income up to ₹12.75 lakh will pay zero tax due to the combined effect of the standard deduction and the enhanced rebate.
• Simplified Filing: With fewer deductions and exemptions, tax filing is easier and less paperwork is required.
• Decision Point for Higher Incomes: If your taxable income is above ₹12.75 lakh, you should compare the old and new regimes. The old regime may be better if you can claim substantial deductions. The new regime is likely better if you have fewer deductions.
• Breakeven Analysis: For those earning between ₹12 lakh and ₹24 lakh, calculate the “breakeven” level of deductions. If your eligible deductions exceed this level, the old regime may save you more tax; otherwise, the new regime is likely more beneficial.

Interlink with Existing Tax-Related Posts

• Old vs New Tax Regime: Which is Better for Salaried Individuals?
• Salary Income Taxation Under the Income Tax Bill 2025
• How to calculate income tax on taxable income above Rs 12 lakh

Frequently Asked Questions (FAQs)

What is the tax-free income limit for salaried employees under the new regime?

For FY 2025-26, salaried employees can have up to ₹12.75 lakh (including standard deduction) as tax-free income under the new tax regime.

Can I claim deductions like 80C, HRA, or home loan interest in the new regime?

No, most deductions and exemptions are not available under the new regime. Only the employer’s NPS contribution under section 80CCD(2) is allowed.

Who should choose the old regime over the new regime?

If you can claim substantial deductions (e.g., 80C, 80D, HRA), the old regime may offer more tax savings. Otherwise, the new regime is simpler and often results in lower tax for those with fewer deductions.

How does the Section 87A rebate work in the new regime?

If your taxable income after all eligible deductions does not exceed ₹12 lakh, you get a rebate of up to ₹60,000, making your tax liability zero.

How to Use the New Tax Regime Calculator

1. Enter your total income (before deductions).
2. Add any eligible deductions (only employer’s NPS contribution under 80CCD(2) is allowed).
3. The calculator will automatically apply the ₹75,000 standard deduction and the new slab rates.
4. If your taxable income is under ₹12 lakh, the ₹60,000 rebate will be applied automatically.
5. Review your tax breakdown and compare with the old regime if needed.

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Labels: New Tax Regime 2025, Income Tax Calculator, Section 87A Rebate, Standard Deduction, Salary Taxation, Tax Planning

This comprehensive guide, combined with your advanced calculator, ensures that salaried employees have the latest information and tools to make informed tax decisions for FY 2025-26.