Old vs New Tax Regime

FY 2025-26 (AY 2026-27)
Clarity before complexity.
Your basics
Three things to get started.
Used to determine old regime slab bracket and GIP eligibility
Your total salary before any deductions
HRA, LTA & Housing
These apply under the old regime only, except let-out property income which affects both regimes.
▶ I pay rent and want to claim HRA
Usually 40-50% of your CTC
50% HRA exemption for all 8 metro cities. 40% for others.
▶ I want to claim LTA (Leave Travel Allowance)
Exempt amount based on actual travel cost claimed. Claimable twice in a block of 4 years.
▶ I have a home loan / house property
Self-occupied: max Rs 2,00,000 under old regime. Not deductible under new regime.
Other Income & Deductions
Interest income is taxed in both regimes. Deductions below apply under old regime only, except employer NPS.
▶ I have interest income (FD, savings, bonds)
FD interest, savings interest, bonds, post office, etc. Taxable at slab rate in both regimes.
PPF, ELSS, EPF, LIC, NSC, tuition fees, home loan principal, pension fund, employee NPS. Combined limit: Rs 1,50,000.
My 80C includes life insurance (LIC / term plan) premiums
Self and family: up to Rs 25,000 (Rs 50,000 if senior). Parents: additional Rs 25,000 or Rs 50,000.
▶ More deductions (NPS, Education Loan, Donations, etc.)
Over and above the 80C limit. Max Rs 50,000. Old regime only.
Allowed in BOTH regimes. Old: up to 10% of basic. New: up to 14% of basic. Combined cap with PF and superannuation: Rs 7.5 lakh.
Interest on loan for higher education. No upper limit. Available for 8 years from repayment start.
Enter the deductible portion (50% or 100% depending on institution).
Max Rs 10,000 (Rs 50,000 for senior citizens under 80TTB).
Your Tax Comparison
Recommendation
Old Regime
New Regime
▶ View detailed breakdown
ComponentOld RegimeNew Regime
What about your investments?
Equity mutual fund gains are taxed at special rates (20% STCG, 12.5% LTCG above Rs 1.25 lakh) - same in both regimes. But debt mutual fund gains, FD interest, and short-term gains on gold or property are taxed at your slab rate - so your regime choice does affect them. Crypto and digital assets are taxed at a flat 30% regardless of regime. This calculator focuses on salary income, which is where the regime decision matters most for salaried professionals.
Tax planning is step 1. Income planning is step 2.
After you stop working, where will your income come from?
Now here is a question most tax planners miss. Some people structure this in a way that is both guaranteed and tax-free under current law. Kamal-Jeswani's GIP Advisor can show you how this works for your profile.
10-digit number starting with 6, 7, 8, or 9
Kamal Sir will also personally reach out on WhatsApp
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Disclaimer

This calculator provides approximate estimates for quick reference. Actual tax liability depends on your individual circumstances, applicable exemptions, and provisions of the Income Tax Act.

For filing returns, consult the relevant provisions or a qualified tax professional. Kamal-Jeswani is a CFP Professional and Financial Coach - this tool is educational, not a substitute for personalized tax advice.

4% Health & Education Cess is included in all calculations. Surcharge is applicable for taxable income above Rs 50 lakhs.

Your income won't last forever. Your tax-free plan can.