Old vs. new tax regime

Under section 202 of the Income-tax Act, 2025: income up to ₹4 lakh is taxed at nil, ₹4–8 lakh at 5%, ₹8–12 lakh at 10%, ₹12–16 lakh at 15%, ₹16–20 lakh at 20%, ₹20–24 lakh at 25%, and above ₹24 lakh at 30%. The Finance Bill 2026 memorandum says these rates are unchanged for tax year 2026-27. The same table applied in FY 2025-26.

For a salaried person, yes. ₹12,75,000 minus the ₹75,000 standard deduction is ₹12,00,000 of total income. Section 156 (earlier section 87A) wipes the tax up to that point. A self-employed person does not get the standard deduction, so ₹12.75 lakh is not tax-free for them.

It is the old-regime deductions, excluding the ₹50,000 standard deduction, that make the old regime cost the same or less than the new regime. Employer NPS is left out of that figure because both regimes allow it. The number on this page is calculated from the tax engine, not from a fixed table.

If you have no business income, you can choose the regime when you file the return for that year. Someone with business income has tighter rules on switching. This calculator does not model that restriction.