Tax calculator
Old regime or new regime?
The new regime is now the default, and it does not allow Section 123 (what used to be 80C). So the question is no longer how much to invest under 123 — it is whether the old regime is worth choosing at all.
Total income before any deductions.
Salaried and pensioned taxpayers get a standard deduction — ₹75,000 under the new regime, ₹50,000 under the old.
EPF, life insurance premiums, home loan principal, children’s tuition fees, PPF, ELSS. Capped at ₹1.5 lakh, and only claimable under the OLD regime.
Difference between the two
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Talk to us about tax planningIndicative only, based on the assumptions below. Not an offer or a guarantee.
What this assumes
- FY 2026-27 slabs under the Income Tax Act, 2025, which replaced the 1961 Act on 1 April 2026. Section 80C is now Section 123; the ₹1.5 lakh limit carried over unchanged.
- New regime: nil to ₹4L, then 5% / 10% / 15% / 20% / 25% / 30%, with a Section 87A rebate of up to ₹60,000 where taxable income is ₹12 lakh or less. Standard deduction ₹75,000 for salaried.
- Old regime: nil to ₹2.5L, then 5% / 20% / 30%. Standard deduction ₹50,000 for salaried. Section 123 deductions up to ₹1.5 lakh.
- Health and Education Cess of 4% is included in both figures.
- Surcharge on incomes above ₹50 lakh is NOT included, so very high earners will owe more than shown under both regimes.
- Only Section 123 is modelled. HRA, home loan interest under s.24, 80D health premiums (now s.126) and 80G donations are not — and each of them shifts the answer towards the old regime. If you claim several, come and talk to us rather than relying on this.
The boring bit
Why this changed, and why most people are on the new regime
Until AY 2023-24 the old regime was the default and everyone chased Section 80C every March. Since AY 2024-25 the new regime is the default — you now have to actively opt OUT of it, by filing Form 10-IEA, to claim the old deductions at all.
And the new regime is usually better. With the Section 87A rebate, a salaried person earning up to about ₹12.75 lakh pays no tax at all — no investing required. Even well above that, the wider slabs frequently beat the old regime with a full ₹1.5 lakh claimed under Section 123.
One trap worth knowing: the 87A rebate is a cliff, not a taper. At ₹12,00,000 of taxable income it wipes your bill; one rupee over and the entire ₹60,000 disappears. If you are within a few thousand rupees of that line, it is worth a conversation.
The honest conclusion: do not buy an investment for the tax break alone. If the new regime wins for you, an ELSS fund bought "to save tax" saves you nothing. It may still be a perfectly good investment — but on its own merits, not on a deduction you cannot claim.
Tax = marginal slab tax on (gross − deductions allowed by that regime) − s.87A rebate, + 4% cess. Compared across both regimes.
FAQ
Questions about this calculator
Which regime am I on right now?
The new one, unless you or your employer actively chose otherwise. It has been the default since AY 2024-25. To use the old regime you must file Form 10-IEA before the return deadline.
What happened to Section 80C?
It still exists, with the same ₹1.5 lakh limit, but it is now numbered Section 123 — the Income Tax Act, 2025 replaced the 1961 Act on 1 April 2026 and renumbered most provisions. Section 80CCD became 124 and 80D became 126. Same benefits, new numbers.
Can I switch between regimes?
Salaried taxpayers without business income can choose each year. With business income the choice is far more restricted — generally once, with limited ability to go back. Ask before you switch if you have business income.
Should I stop my ELSS?
Not necessarily, and not because of this calculator. If the new regime is better for you the tax benefit is gone, but the fund itself may still suit your goals. What should stop is buying it for the deduction. Note that each ELSS instalment is locked for three years from its own date regardless.
Why is my number different from my payslip?
Most likely surcharge, which applies above ₹50 lakh and is not modelled here, or deductions this calculator does not cover — HRA, home loan interest, 80D health premiums. Each of those pushes the answer towards the old regime.
Is this tax advice?
No. It is arithmetic on the published slabs, and it deliberately models only one deduction. Your actual position depends on things a calculator cannot see. Treat it as a starting point for a conversation, not a filing decision.
Turn the number into a plan
A calculator gets you to a figure. Getting there needs a product, and that is the part we do.