What is the Section 87A rebate limit in the New Regime?

Under the New Regime, the Section 87A rebate reduces your tax liability to zero if your taxable income is at or below the applicable rebate threshold, which has been raised in successive budgets — most recently to ₹12,00,000. Marginal relief can still lower the tax due for income just above that threshold.

Do I have to stick with the same tax regime every year?

Salaried individuals can switch between the Old and New Regime each year when filing their return. Those with business or professional income can generally switch back only once after opting out, subject to conditions.

Is the standard deduction available under both regimes?

Yes, salaried employees and pensioners get a standard deduction under both the Old and New Regime, though the exact amount differs between the two.

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Income Tax Calculator (Old vs New Regime)

See which tax regime — Old or New — saves you more money for AY 2024-25 through 2027-28, including your standard deduction and rebates.

Select Assessment Year

Tax Rules Versioning

Income & Deductions

Annual Gross Salary (₹)

Other Income (Interest/Capital Gains) (₹)

Salaried Employee (Eligible for Standard Deduction)

Old Regime Deductions (Chapter VI-A)

Section 80C (PPF, EPF, ELSS, Life Ins)Max ₹1.5L

Section 80D (Health Insurance)Max ₹25k-₹75k

Section 80CCD(1B) (NPS Extra)Max ₹50k

Section 24(b) (Home Loan Interest)Max ₹2.0L

HRA Exemption Claimed (₹)

Tax Recommendation for AY 2026-27

New Tax Regime is Better

New Tax Regime saves you ₹1,01,400 in tax compared to Old Regime.

New Regimeu/s 115BAC

₹0

Effective Tax: 0%

Standard Deduction:₹75,000

Net Taxable Income:₹11,25,000

87A Rebate:-₹52,500

4% Health Cess:+₹0

Old RegimeWith Exemptions

₹1,01,400

Effective Tax: 8.45%

Standard Deduction:₹50,000

Total Exemptions:₹2,25,000

Net Taxable Income:₹9,25,000

87A Rebate:-₹0

4% Health Cess:+₹3,900

AI Tax Analysis & Plain-English Breakdown

Burnjet provides general informational estimates based on official statutory tax slabs. Tax rules can change by assessment year. Verify applicable rules and consult a qualified Chartered Accountant (CA) for filing.

Quick Reference & Instructions

Simple steps, pro tips, and execution details

Provide Inputs

Type, paste, or select your values in the form fields below.

Instant Live Analysis

Calculations and formatting happen automatically with zero delay as you type.

Copy or Use Output

Copy results or apply the clean output directly to your projects.

How It Works

Uses the official tax slabs for the year you pick, adds in your standard deduction and eligible investments, and works out exactly how much tax you owe.

Formula & Logic

\text{Tax} = \sum (\text{Slab Taxable} \times \text{Rate}) - \text{Rebate}_{87A} - \text{Marginal Relief} + 4\%\text{ Cess}

Example: A salaried taxpayer earning ₹12,00,000 in AY 2025-26 pays ₹78,000 under the New Regime (after ₹75,000 standard deduction and 4% cess).

Frequently Asked Questions

Common questions about calculations, assumptions, and edge cases.

The New Tax Regime is generally more beneficial unless your total eligible deductions under Section 80C, 80D, 24(b), and HRA exceed ₹3,75,000 to ₹4,25,000.

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