Is there zero tax up to ₹12.75 lakh in FY 2025-26?

Yes. Under the new tax regime for FY 2025-26, salaried individuals get a standard deduction of ₹75,000. So CTC of ₹12,75,000 gives taxable income of ₹12,00,000, which is fully covered by the Section 87A rebate of ₹60,000. Net tax = ₹0.

Which tax regime is better for salaried employees in 2025-26?

For most salaried employees with income up to ₹15 lakh and limited deductions, the new tax regime is better due to lower slab rates and the ₹12L rebate. Use this calculator to compare based on your exact deductions.

What is the Section 87A rebate limit in FY 2025-26?

Under the new tax regime for FY 2025-26, the Section 87A rebate limit is ₹12 lakh (taxable income), with a maximum rebate of ₹60,000. Under the old regime it remains ₹5 lakh with max rebate of ₹12,500.

Old vs New Tax Regime Calculator FY 2025-26

Your Income Details

Annual Gross Salary (CTC) ₹ per year

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₹3L₹50L

Old Regime Deductions

Section 80C max ₹1,50,000

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Section 80D (Health Insurance) max ₹75,000

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HRA Exemption

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Home Loan Interest (Sec 24b) max ₹2,00,000

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NPS (80CCD 1B) max ₹50,000

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Other Deductions (80E, 80G etc.)

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Calculating...

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annual tax saving

New Regime

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Taxable income—

Standard deduction₹75,000

Tax before cess—

Cess (4%)—

Total tax payable—

Old Regime

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Taxable income—

Total deductions—

Tax before cess—

Cess (4%)—

Total tax payable—

Tax Breakdown — Side by Side

New Regime

Old Regime

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Old regime deductions not available in new regime: HRA, 80C, 80D, Home loan interest, LTA, and most allowances. New regime has flat lower slabs but no deductions (except ₹75,000 standard deduction and NPS employer contribution).

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