Old Regime
Must opt in before due date
₹0
Estimated annual tax liability · rounded to nearest ₹10
Gross Total Income (GTI)₹0
Less: Standard deduction (₹50,000)₹0
Less: Chapter VI-A deductions₹0
Net taxable income₹0
Slab tax (before rebate)₹0
Less: Rebate u/s 87A / marginal relief₹0
Surcharge (after marginal relief)₹0
Health & Education Cess @ 4%₹0
Total tax payable₹0
Average monthly TDS deduction₹0
Effective rate on taxable income—
Effective rate on gross salary—
New Regime
Default from AY 2024-25
₹0
Estimated annual tax liability · rounded to nearest ₹10
Gross Total Income (GTI)₹0
Less: Standard deduction (₹75,000)₹0
Less: Permitted deductions₹0
Net taxable income₹0
Slab tax (before rebate)₹0
Less: Rebate u/s 87A / marginal relief₹0
Surcharge (after marginal relief)₹0
Health & Education Cess @ 4%₹0
Total tax payable₹0
Average monthly TDS deduction₹0
Effective rate on taxable income—
Effective rate on gross salary—
Tax slabs applied — Tax Year 2026-27
| New Regime — taxable income | Rate | Old Regime (below 60) | Rate |
|---|
| Up to ₹4,00,000 | Nil | Up to ₹2,50,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% | ₹2,50,001 – ₹5,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% | ₹5,00,001 – ₹10,00,000 | 20% |
| ₹12,00,001 – ₹16,00,000 | 15% | Above ₹10,00,000 | 30% |
| ₹16,00,001 – ₹20,00,000 | 20% | Senior citizen (60–79): basic exemption ₹3,00,000 | — |
| ₹20,00,001 – ₹24,00,000 | 25% | Super senior (80+): basic exemption ₹5,00,000 | — |
| Above ₹24,00,000 | 30% | | |
Key rules applied by this calculator
- Standard deduction: ₹75,000 (New) and ₹50,000 (Old) from gross salary/pension.
- Rebate u/s 87A: Old Regime — up to ₹12,500 if taxable income ≤ ₹5 lakh (residents only). New Regime — up to ₹60,000 if taxable income ≤ ₹12 lakh.
- Marginal relief (New Regime): If taxable income slightly exceeds ₹12 lakh, tax is capped so that incremental tax ≤ incremental income. Same logic applies at each surcharge bracket in both regimes.
- Surcharge: New Regime — 10% / 15% / 25% above ₹50L / ₹1Cr / ₹2Cr. Old Regime — additionally 37% above ₹5Cr. Marginal relief computed at every bracket boundary.
- Self-occupied property: Interest loss capped at ₹2,00,000 set-off in Old Regime. Not deductible in New Regime.
- Let-out property: NAV less 30% standard deduction less interest = income/loss, taxable in both regimes.
- 80CCD(2) — Employer NPS: Allowed in both regimes; cap is 10%/14% of Basic+DA — verify in Form 16.
- Finance Bill 2026: Tax rates unchanged from 2025-26. New Regime is default; must file Form 10-IEA before return due date to opt for Old Regime.
Worked example
Take a Section Officer with basic pay ₹56,100, DA ₹30,294 (54%), and other allowances totalling ₹18,000/month — a gross annual salary of about ₹12.65 lakh. She also pays ₹1.5 lakh towards PF/PPF (Section 80C) and ₹22,000 as home loan interest on a self-occupied flat.
| Old Regime | New Regime |
|---|
| Gross salary | ₹12,65,000 | ₹12,65,000 |
| Standard deduction | −₹50,000 | −₹75,000 |
| 80C (PF/PPF) | −₹1,50,000 | Not allowed |
| Home loan interest (Sec 24) | −₹22,000 | Not allowed |
| Taxable income | ₹10,43,000 | ₹11,90,000 |
| Tax (before cess) | ≈₹1,08,600 | ≈₹63,000 |
Here the New Regime works out cheaper despite losing the 80C and home-loan deductions, because of the wider slabs and higher rebate threshold. The gap narrows or reverses for employees with larger home-loan interest, HRA exemption, or NPS Tier-I (80CCD(1B)) claims — which is why this calculator asks for those figures individually rather than assuming one regime is always better.
Frequently Asked Questions
Can I switch between Old and New Regime every year?
Salaried employees without business income can choose either regime each year at the time of filing their return, by submitting Form 10-IEA if opting for the Old Regime (since New Regime is now the default). Employees with business or professional income have a one-time switch-back option after opting out of the New Regime.
Which regime is generally better for Central Government employees?
There is no single answer — it depends on how much you claim under HRA, home loan interest, 80C, and NPS. Employees with high HRA exemption (metro postings) or a home loan tend to benefit more from the Old Regime; those with fewer deductions usually save more under the New Regime's wider slabs.
Does my employer need to know which regime I'm choosing?
Yes — you must intimate your DDO/Administration Section at the start of the financial year (or when joining) so TDS is deducted correctly. You can still choose a different regime at the time of filing your return; any excess TDS is refunded.
Is NPS employer contribution (80CCD(2)) available in both regimes?
Yes, this is one of the few deductions common to both regimes — up to 14% of Basic+DA for Central Government employees under NPS.
Authenticated sources
Disclaimer: This is an educational estimate, not a return-preparation engine or professional tax opinion. Figures must be verified using Form 16, AIS/TIS, and the official Income Tax e-Filing utility. Liability may differ where special-rate income, business income, foreign income, loss carry-forward, DTAA relief, or section 89 relief is involved.
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