Calculate all deductions under 80C, 80D, HRA, NPS, Home Loan & more. Instantly compare Old vs New Tax Regime and compare the two regimes using your entered assumptions.
80C₹1.5L Limit
80DHealth Ins.
NPSExtra ₹50K
Old vs NewComparison
Tax Deduction & Regime Comparison Calculator
Enter your income and all applicable deductions — get a planning estimate under both regimes; verify final filing figures
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Income & Deductions
FY 2025-26 (AY 2026-27)
📥 Income Details
Include Basic + HRA + All Allowances + Bonus
🏠 HRA Exemption (Sec 10-13A)
📦 Section 80C Max ₹1,50,000
🏥 Section 80D – Health Insurance ₹25K / ₹50K (Sr)
🏦 NPS – Section 80CCD Extra ₹50,000
Over & above 80C limit
Max 10% of Basic+DA
🏡 Home Loan Interest – Section 24(b) Max ₹2,00,000
📚 Other Deductions
N/A for Senior Citizens (use 80TTB)
Only for 60+ age
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Tax Calculation Results
Old Regime vs New Regime comparison
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Enter your income and deductions, then tap Calculate
💡 Tax Saving by Choosing Best Regime
—
Old Regime
Gross Income—
Standard Deduction—
HRA Exemption—
Total 80C—
Total 80D—
NPS 80CCD(1B)—
Sec 24(b) Home Loan—
Other Deductions—
Taxable Income—
—
Tax + 4% Cess
New Regime
Gross Income—
Standard Deduction—
Employer NPS 80CCD(2)—
Other Deductions—
Taxable Income—
—
Tax + 4% Cess
📋 Exemption Breakdown (Old Regime)
INFO SECTION
Tax Exemptions & Deductions Guide – FY 2025-26
Complete list of all major income tax deductions available under Indian tax law
📦 Section 80C – Most Popular Deduction (Max ₹1,50,000)
Section 80C is the most widely used deduction, allowing taxpayers to reduce taxable income by up to ₹1,50,000 per year by investing in specified instruments. The key is that the total of all 80C investments is capped at ₹1.5 lakhs, not each individual investment.
Investment
ELSS Mutual Funds
3-year lock-in. Highest potential returns among 80C options. Returns are market-linked and LTCG applies above ₹1L.
Investment
PPF (Public Provident Fund)
15-year lock-in. Government-backed, tax-free returns. Interest rate revised quarterly (currently ~7.1%). EEE status.
Insurance
LIC / Term / ULIP Premium
Life insurance premiums qualify for 80C. Term plans are most tax-efficient. ULIP premiums up to ₹1.5L qualify.
Loan
Home Loan Principal
The principal component of EMI qualifies under 80C. Interest is separately covered under Section 24(b).
Savings
NSC / 5-Year FD / Post Office
NSC accrued interest (except in last year) also qualifies as fresh 80C investment, compounding the deduction.
Savings
Sukanya Samriddhi Yojana
For girl child (below 10 years). Up to ₹1.5L/year. EEE tax status — contributions, interest & maturity all tax-free.
📊 Old Regime vs New Regime – Tax Slab Comparison FY 2025-26
| Income Slab | Old Regime Rate | New Regime Rate (Default) |
|---|---|---|
| Up to ₹2,50,000 (₹3L for 60+, ₹5L for 80+) | Nil | Nil |
| ₹2,50,001 – ₹3,00,000 | 5% | Nil |
| ₹3,00,001 – ₹6,00,000 | 5% | 5% |
| ₹6,00,001 – ₹7,00,000 | 20% | 5% |
| ₹7,00,001 – ₹9,00,000 | 20% | 10% |
| ₹9,00,001 – ₹10,00,000 | 20% | 15% |
| ₹10,00,001 – ₹12,00,000 | 30% | 20% |
| ₹12,00,001 – ₹15,00,000 | 30% | 20% |
| Above ₹15,00,000 | 30% | 30% |
New Regime Benefits: Standard Deduction of ₹75,000 + Employer NPS 80CCD(2) still allowed. Rebate u/s 87A is applied by this planner using FY 2025-26 thresholds; eligibility and special-rate income should be verified before filing. Surcharge applies on income above ₹50 lakhs.
🏥 Section 80D – Health Insurance Deduction
| Category | Self & Family (Non-Senior) | Self & Family (Senior 60+) | Parents (Non-Senior) | Parents (Senior 60+) |
|---|---|---|---|---|
| Health Insurance Premium | ₹25,000 | ₹50,000 | ₹25,000 | ₹50,000 |
| Max Total Deduction | ₹50,000 (self + parents, if parents senior) | Up to ₹1,00,000 (if both self and parents are senior) | ||
| Preventive Health Checkup | ₹5,000 (included within above limits) | |||
How to Use This FY 2025-26 Tax Planner Correctly
A practical reconciliation workflow for salary, exemptions, deductions and regime selection.
🧾 Start With the Salary Figure That Actually Reaches Your Tax Return
The first number in a tax comparison should not be copied blindly from CTC. CTC can contain employer contributions, insurance cost, gratuity provisions and other items that are not identical to taxable salary. Reconcile your monthly payslips, annual salary statement and Form 16 before treating the gross-salary field as final. If you first need to understand the difference between gross earnings and take-home pay, use the Gross vs Net Salary Calculator and the salary-slip guide.
For government employees, also separate Basic Pay, DA, HRA, Transport Allowance and recoveries. The Salary Break-up Calculator can help you build a clean annual figure before you compare tax regimes. A tax calculator is only as reliable as the income inputs supplied to it.
🏠 Treat HRA as a Formula, Not a Fixed Percentage Deduction
HRA exemption is not simply “the HRA amount received.” The exempt portion depends on the salary base used for the rule, actual HRA received, rent paid and the metro/non-metro condition. Enter all three values instead of estimating from a percentage. Cross-check the result with the dedicated HRA Tax Exemption Calculator.
Keep rent receipts, landlord details where required, the rental agreement and payment evidence together. If you own a property and also claim HRA, the facts should support both positions independently. This page should be used as a planning model, not as evidence that a deduction is automatically admissible.
📦 Build Section 80C From Actual Eligible Payments
Do not enter the statutory maximum simply because the field allows it. Add only eligible amounts actually paid or invested during the financial year. EPF, PPF, eligible life-insurance premium, qualifying tuition fees, ELSS and eligible home-loan principal can share the same combined ceiling. If your combined entries exceed the ceiling, this calculator caps the 80C deduction in the estimate.
A good audit method is to maintain a simple evidence folder with one file for every deduction category. This prevents double counting, especially when payroll has already considered some investments. The annual tax result should reconcile with the evidence that would be available if the return is reviewed later.
🏥 Check 80D Family and Parent Limits Separately
Health-insurance deduction depends on who is covered and the relevant age category. Preventive-health-check-up limits operate within the overall framework rather than as an unlimited extra deduction. Enter actual eligible payments and review whether payment mode, insured person and age conditions are satisfied.
Do not combine employer-provided medical insurance, your own policy premium and reimbursement without checking their tax treatment. A payroll deduction and a tax deduction are not automatically the same thing.
🏦 Keep Employee NPS and Employer NPS Separate
Employee NPS contribution under the additional deduction framework and employer contribution under section 80CCD(2) are different concepts. They can also behave differently between tax regimes and by employment category. Use your actual contribution statement or salary record rather than assuming a percentage. For corpus planning, use the NPS Calculator; for contribution-level detail, the NPS Tier 1 Calculator is more appropriate.
When comparing old and new regime results, verify the employer-contribution treatment for your exact category and financial year. This calculator intentionally presents an estimate rather than a filing certificate.
🏡 Home-Loan Interest Needs Property-Status Checks
The tax treatment of home-loan interest can depend on whether the property is self-occupied or let out, whether construction conditions are met, and how loss from house property is treated under the chosen regime. Entering ₹2 lakh in a field does not itself prove eligibility. Reconcile the lender interest certificate, possession/construction facts and ownership share before filing.
If you are simultaneously modelling HRA and home-loan deductions, document the factual reason for both. A tax computation should follow the facts, not be reverse-engineered to reach a desired deduction total.
📊 Compare Regimes After Every Material Salary Change
A promotion, MACP, annual increment, DA revision, transfer, HRA change, bonus or arrear payment can change the regime comparison. Government employees can model pay changes with the Annual Increment Calculator, Pay Fixation Calculator and DA Arrears Calculator before updating annual taxable salary.
Professional Tax is also state-specific. If it appears on your payslip, check the amount separately using the Professional Tax Calculator and then confirm the tax-return treatment applicable to the year.
🧮 What This Calculator Does Not Fully Model
This page focuses on a straightforward salary-and-deductions comparison. It is not designed to perfectly handle every special-rate item, capital gain, lottery income, complex house-property loss, foreign income, multiple employer transitions, marginal relief case or every surcharge scenario. If such items are material, compare the output with a complete computation.
The dedicated Income Tax Calculator for Government Employees and Income Tax Slabs reference can be used as companion tools. Always treat the tax shown here as an estimate until your final taxable-income schedule is complete.
✅ Year-End Tax Reconciliation Checklist
Before accepting the “lower estimate” label, reconcile gross salary, standard deduction, HRA exemption, 80C, 80D, NPS, home-loan interest, other income, Professional Tax and TDS. Then check Form 16 and AIS/26AS-type information for mismatches. A lower modelled tax does not automatically mean a regime switch is available in every business-income situation; verify your filing options.
Save a copy of the inputs used for the comparison. If a number changes later, rerun the entire calculation instead of adjusting only the final tax. This keeps the decision traceable and makes it easier to explain differences between payroll TDS and the final return.
Worked Tax-Planning Scenarios
These examples show how to reason through inputs without treating the calculator as a filing certificate.
Scenario 1: Salaried Employee With Moderate 80C and No HRA Claim
Suppose an employee receives a regular salary, has employee PF and a small PPF contribution, but lives in employer accommodation and therefore has no HRA exemption. The correct workflow is to enter gross annual salary, other income, actual 80C payments, any eligible 80D premium and employer NPS contribution if applicable. Do not enter an HRA exemption merely because HRA appears in a standard salary structure.
After the calculator compares both regimes, inspect taxable income under each regime rather than looking only at the final tax difference. If the old-regime taxable income is lower mainly because of 80C, verify that the entered investment really belongs to the financial year and is within the combined ceiling.
Scenario 2: Employee Paying Rent in a Metro
An employee may receive a large HRA but still have a smaller exemption because the exemption is the least of the prescribed values. Enter the annual salary base used for HRA, annual HRA received and annual rent actually paid. The city selection matters only for the prescribed percentage test; it does not make the entire HRA exempt.
After calculating, compare the HRA figure with the dedicated HRA tool and retain rent evidence. If rent changes mid-year, calculate using the actual period data rather than assuming twelve identical months.
Scenario 3: Promotion or DA Revision During the Year
When Basic Pay or DA changes during the financial year, annual salary should be rebuilt month by month or at least split into pre-change and post-change periods. A promotion may also change HRA, TA, NPS contribution and TDS. If you simply multiply the latest monthly salary by twelve, the annual tax estimate can be materially wrong.
Use pay-fixation and arrears tools first, then return to this page with a reconciled annual gross figure. This is especially important when arrears are paid in one financial year for service rendered in an earlier period.
Scenario 4: Employer NPS Contribution
Employer NPS should be taken from the payroll or contribution statement, not guessed from the employee’s own NPS deposit. The two contributions can have different tax treatment and limits. If your employer contribution changes after a salary revision, update the annual figure accordingly.
The calculator keeps employer NPS separate so that the regime comparison remains transparent. If you are unsure whether a contribution is employer-side or employee-side, resolve that classification before relying on the result.
Scenario 5: Other Income and Bank Interest
Salary is not always the only taxable item. Bank interest and other taxable receipts can reduce or eliminate a rebate that appeared available when salary was considered alone. Enter known other income instead of treating TDS on bank interest as a separate tax liability.
If you have special-rate income such as certain capital gains, do not assume this simplified calculator reproduces every interaction with rebate and surcharge rules. Use a full tax computation for the final return.
Why Payroll TDS Can Differ From This Result
Payroll may use declarations submitted at the start of the year, then revise TDS when proof is received. A late investment, bonus, arrear or employer change can alter the annual projection. This calculator uses the values currently entered; it does not know what your employer has already deducted.
Therefore, compare the estimated annual tax with cumulative TDS separately. A tax liability estimate answers “what may be payable for the year,” while payroll TDS answers “what has already been withheld.” The difference between those two figures drives the likely balance payable or refund position.
Documents to Keep With Your Tax Working
Keep Form 16, salary slips, rent receipts or rental agreement where relevant, eligible investment proofs, health-insurance premium evidence, NPS statements, home-loan interest certificate and records for other income. The exact documentation required can vary by claim, but maintaining one reconciled folder makes review easier.
Record the date on which you ran this comparison and the inputs used. If a later payroll correction changes salary or TDS, save a fresh calculation instead of overwriting the earlier working. That audit trail is useful when the final return differs from the employer’s initial projection.
Common Input Errors That Distort the Regime Comparison
One common error is entering annual CTC as gross salary even though CTC includes employer-side benefits. Another is entering deductions at their statutory maximum instead of actual eligible payments. A third is counting the same item twice—for example, adding employee PF inside 80C and again as an “other deduction.” Each of these can make the old-regime result appear artificially low.
HRA is another frequent source of error. The allowance received, rent paid and tax-exempt HRA are three different figures. Similarly, a home-loan EMI is not the same as eligible principal under 80C or eligible interest under the relevant house-property provision. Break the loan certificate into the required components before entering values.
Other income is often omitted because tax was already deducted by the bank. TDS is merely tax collected in advance; it does not make the underlying income disappear from the tax computation. Add taxable interest and then reconcile the TDS separately when preparing the final return.
Old-Regime Deductions Should Be Evidence-Driven
The old regime can reward legitimate deductions, but the decision should not encourage unnecessary spending or investment solely to reduce tax. First list obligations and investments you would make anyway, then test the tax result. Compare after-tax cash flow, liquidity and investment suitability rather than looking only at the headline tax saving.
If an investment has a lock-in, insurance component or market risk, evaluate that product on its own merits. A tax deduction reduces taxable income; it does not guarantee that the investment is economically superior. The calculator intentionally does not recommend specific investment products.
New-Regime Estimate: Watch Rebate and Special-Rate Income
The FY 2025-26 new-regime estimate on this page uses the revised slab structure and standard deduction for a straightforward salary computation. Rebate eligibility can be affected by the nature of income, and special-rate income may require treatment beyond this simplified model. If capital gains or other special-rate items are material, use a complete return computation.
Marginal relief and surcharge can also create edge cases at higher incomes. This page includes a simplified surcharge treatment for planning; it should not be used as the sole computation for a high-income or complex return.
Government Employee Year-End Review
Government employees should reconcile Basic Pay and DA with the sanctioned pay record before estimating annual taxable salary. HRA, TA, arrears, bonus-type payments, leave encashment during service and other allowances can have different tax treatment. If a pay revision order is issued retrospectively, rebuild annual salary and compare the tax position again.
For NPS-covered staff, employer and employee contributions should match the contribution statement. For pensioners, use pension income rather than salary assumptions and review the applicable standard deduction and pension-specific facts.
Decision Record: Keep the Comparison Explainable
When you choose a regime, save the input summary used for the decision. Note salary, other income, HRA exemption, 80C, 80D, NPS, home-loan interest and any unusual items. If your employer asks for a declaration, use the same numbers unless updated evidence justifies a change.
At filing time, rerun the comparison with final figures. The regime that looked lower in April can differ after a promotion, bonus, arrear payment, investment change or other income. A fresh final-year comparison is more reliable than relying on the early payroll declaration.
Quick Final Check Before Filing
Confirm that every annual figure belongs to FY 2025-26, that deductions have not been duplicated between payroll and manual inputs, and that final Form 16/TDS information agrees with your working. Recalculate after the financial year closes using actual—not projected—figures.
FAQ
Frequently Asked Questions – Income Tax Exemptions India
Answers to the most common questions about tax deductions and exemptions for FY 2025-26
Which tax regime is better — Old or New?▾It depends on your deduction amount. There is no universal deduction threshold at which one regime always becomes better. Salary mix, HRA, deductions, special-rate income, surcharge and rebate eligibility can change the result. Use this calculator as a first-pass comparison and reconcile it with the final return computation. The New Regime is now the default regime from FY 2023-24 onwards, but you can opt for Old Regime at the time of filing ITR.
What is the standard deduction for salaried employees in FY 2025-26?▾The standard deduction is ₹75,000 per year for FY 2025-26 under the New Tax Regime (enhanced from ₹50,000 in Budget 2024). Under the Old Regime, the standard deduction remains ₹50,000. This flat deduction is available to all salaried employees and pensioners without any proof or documentation.
Can I claim both HRA exemption and Home Loan deduction?▾Yes, you can claim both simultaneously if you are living on rent in a different city from where your home loan property is located, OR if you genuinely pay rent while your own property is under construction or occupied by family. Both claims depend on the actual facts and documentation; verify the applicable conditions before filing. HRA exemption is under Section 10(13A), and home loan interest is under Section 24(b) up to ₹2 lakhs per year.
What is Section 87A rebate and who is eligible?▾Section 87A provides a tax rebate making income tax effectively zero: New Regime: this planner applies the FY 2025-26 rebate framework up to ₹12,00,000 of qualifying total income (subject to statutory conditions and treatment of special-rate income). Old Regime: Zero tax if total income ≤ ₹5,00,000 (rebate up to ₹12,500). The rebate applies before adding health and education cess. It is not available on special rate income like LTCG under Section 112A.
What is the NPS benefit under Section 80CCD?▾NPS offers a three-layer tax benefit: (1) 80CCD(1): Employee contribution up to 10% of Basic+DA qualifies within the ₹1.5L ceiling of Section 80C. (2) 80CCD(1B): Additional contribution up to ₹50,000 per year is deductible over and above the 80C limit — exclusively available for NPS. (3) 80CCD(2): Employer’s NPS contribution up to 10% of Basic+DA (14% for government employees) is deductible and available even in the New Regime.
Is HRA exemption available under the New Tax Regime?▾No. HRA exemption under Section 10(13A) is not available under the New Tax Regime. This is one of the key trade-offs when choosing the New Regime. If you pay high rent, the Old Regime may be more beneficial due to the HRA exemption. The New Regime does not allow most Chapter VI-A deductions (80C, 80D, 80E, 80G, etc.) or Section 24(b) home loan interest deduction.
What is surcharge on income tax and when does it apply?▾Surcharge is an additional tax levied on the income tax amount (not on income) for high earners: 10% surcharge for income ₹50L–₹1Cr; 15% for ₹1Cr–₹2Cr; 25% for ₹2Cr–₹5Cr; 37% for above ₹5Cr (Old Regime, capped at 25% in New Regime). After surcharge, a 4% Health and Education Cess is applied on (Tax + Surcharge). Marginal relief is available to ensure that a small increase in income doesn’t disproportionately increase tax.