1. What is India's New Tax Regime 2025-26?

The new tax regime for 2025-26 offers simplified tax slabs with lower rates but fewer deductions and exemptions compared to the old regime. It's optional for individuals and HUFs.

2. How Does the Calculator Work?

The calculator uses the following formula:

The calculation applies progressive tax rates based on income slabs.

3. Tax Slabs for 2025-26

New Regime Tax Slabs:

• Up to ₹3,00,000: Nil
• ₹3,00,001 - ₹6,00,000: 5%
• ₹6,00,001 - ₹9,00,000: 10%
• ₹9,00,001 - ₹12,00,000: 15%
• ₹12,00,001 - ₹15,00,000: 20%
• Above ₹15,00,000: 30%

Note: No tax rebate is available under the new regime for incomes above ₹7 lakhs.

4. Using the Calculator

Instructions: Enter your taxable income in INR (after deductions if any) and the calculator will compute your tax liability under the new regime.

5. Frequently Asked Questions (FAQ)

Q1: Should I choose new or old tax regime?
A: It depends on your income level and available deductions. The new regime benefits those with fewer investments and deductions.

Q2: Are there any cess or surcharges?
A: Yes, health and education cess of 4% is applicable on the tax amount. Surcharge applies for incomes above ₹50 lakhs.

Q3: Can I switch between regimes?
A: For salaried individuals, you can choose each year. Business professionals must continue with the chosen regime.

Q4: What deductions are not allowed?
A: Most deductions (80C, 80D, HRA, etc.) are not available under the new regime except standard deduction for salaried.

Q5: Is this calculator accurate for all cases?
A: It provides basic tax calculation. For complex cases with capital gains or multiple income sources, consult a tax professional.