Hindustan Income Tax Calculator: New vs Old Regime, Salary After Tax
The Hindustan income tax calculator works out tax under both regimes side by side: the new tax regime slabs with the ₹12 lakh 87A rebate, and the old regime with 80C, 80D and other deductions. It shows standard deduction, rebate, surcharge and cess step by step, plus the net pay after tax every month.
By Umer Sattar Updated 21 Oct 2026
New regime saves ₹1,05,300 on ₹15,00,000
Tax: ₹97,500 new · ₹2,02,800 old
- New: taxable
- ₹14,25,000
- New: monthly in hand
- ₹1,16,875
- Old: taxable
- ₹12,75,000
- Old: monthly in hand
- ₹1,08,100
| Step | New regime | Old regime |
|---|---|---|
| Standard deduction | ₹75,000 | ₹50,000 |
| Taxable income | ₹14,25,000 | ₹12,75,000 |
| Tax on slabs | ₹93,750 | ₹1,95,000 |
| Rebate u/s 87A | ₹-0 | ₹-0 |
| Surcharge | ₹0 | ₹0 |
| Health & education cess (4%) | ₹3,750 | ₹7,800 |
| Total tax | ₹97,500 | ₹2,02,800 |
| Effective rate | 6.5% | 13.52% |
New tax regime slabs
The slabs below are those introduced by the Finance Act 2025. If a later Budget changes them, this table and the calculator are updated together.
| Taxable income | Rate |
|---|---|
| Up to ₹4 lakh | Nil |
| ₹4–8 lakh | 5% |
| ₹8–12 lakh | 10% |
| ₹12–16 lakh | 15% |
| ₹16–20 lakh | 20% |
| ₹20–24 lakh | 25% |
| Above ₹24 lakh | 30% |
Is income up to ₹12.75 lakh really tax-free for salaried employees?
Yes, under the new regime. Salaried people get a ₹75,000 standard deduction, which brings ₹12.75 lakh down to ₹12 lakh of taxable income, and the 87A rebate cancels the tax up to that level. Just above it, marginal relief ensures the tax never exceeds the income above ₹12 lakh.
Tax by income: quick table (new regime, salaried)
| Annual salary | Tax | Monthly in hand* |
|---|---|---|
| ₹10 lakh | ₹0 | ₹83,333 |
| ₹12.75 lakh | ₹0 | ₹1,06,250 |
| ₹15 lakh | ₹97,500 | ₹1,16,875 |
| ₹20 lakh | ₹1,92,400 | ₹1,50,633 |
| ₹25 lakh | ₹3,19,800 | ₹1,81,683 |
*Before EPF, professional tax and other payroll deductions. Professional tax (up to ₹2,500 a year in states like Maharashtra, Karnataka and West Bengal) is deducted from salary separately.
India income tax formula: six steps
- Gross income: salary plus other normal income (interest, rent after its deductions).
- Less standard deduction: ₹75,000 (new) or ₹50,000 (old) for salaried employees and pensioners.
- Less deductions (old regime only): 80C up to ₹1.5 lakh, 80D, HRA, home-loan interest and others. Employer NPS under 80CCD(2) is allowed in both.
- Apply the slabs to taxable income.
- Subtract the 87A rebate if eligible (₹12 lakh limit new, ₹5 lakh old), then add surcharge above ₹50 lakh.
- Add 4% health and education cess on tax plus surcharge.
New or old regime: which saves more?
The new regime wins for most people without large deductions. The old regime can still win when deductions are big, typically a home loan with ₹2 lakh of interest plus full 80C, 80D and HRA. The calculator shows both totals and which one saves more for the exact figures entered.
Salaried employees choose the regime with the employer for TDS, but can still switch while filing the return each year. People with business income have limited switching, so check before changing.
Marginal vs average tax rate
The marginal rate is the rate on the next rupee earned (for example 15% between ₹12 and 16 lakh, plus cess). The average (effective) rate is total tax ÷ income, which the calculator shows. On a ₹15 lakh salary the marginal rate is 15.6% with cess, but the effective rate is only 6.5%.
What this calculator doesn't cover
Capital gains (taxed at special rates), agricultural income, and income of HUFs and companies are outside its scope. EPF contributions reduce take-home pay but not tax in the new regime. For filing, the Income Tax Department's e-filing portal remains the final word.
Income Tax Calculator: questions people ask
What are the income tax slabs in the new regime?
Nil up to ₹4 lakh, 5% to ₹8 lakh, 10% to ₹12 lakh, 15% to ₹16 lakh, 20% to ₹20 lakh, 25% to ₹24 lakh and 30% above, as introduced by the Finance Act 2025.
How much tax do I pay on a ₹10 lakh salary?
Nil under the new regime: after the ₹75,000 standard deduction, taxable income is ₹9.25 lakh and the 87A rebate removes the tax.
Is income up to ₹12.75 lakh tax-free for salaried employees?
Yes, under the new regime: ₹75,000 standard deduction plus the 87A rebate up to ₹12 lakh taxable income.
What is the marginal tax rate?
The rate applied to your next rupee of income, i.e. the slab rate your income falls in, plus cess and any surcharge.
What is the difference between average and marginal tax rate?
Average rate = total tax ÷ income; marginal rate = tax on the next rupee. The average is always lower in a slab system.
Should I choose the new or old regime?
Enter your deductions in the calculator; it shows both totals. Without large deductions, the new regime is usually cheaper.