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Estimate your income tax liability under the New Regime for FY 2025-26.
Tax regime
New Regime (FY 2025-26)
Includes ₹75,000 standard deduction
Note: Slabs as of Union Budget 2025; updated FY 2025-26. Surcharge on income above ₹50 lakh is not modelled.
Total tax payable
₹71,500
Slab-wise breakdown
Take-home
₹11,28,500
Effective tax rate
5.96%
The New Tax Regime, introduced in FY 2020-21 and revamped in subsequent budgets, offers lower tax slabs with minimal deductions. It became the default regime from FY 2023-24 - meaning if you don't actively opt for the Old Regime, your tax is computed using these slabs. The Union Budget 2025 further sweetened the deal with revised slabs that meaningfully lower tax for the ₹7L–₹15L income band.
Total tax = (Slab tax − 87A rebate) × 1.04 (cess)
If your taxable income (after the ₹75,000 standard deduction) is ≤ ₹7,00,000, Section 87A wipes out the entire tax liability - up to a cap of ₹25,000. Practically, this means a salaried individual earning up to ~₹7.75 lakh per year pays zero income tax under the new regime. Cross the threshold by even ₹1, though, and the rebate vanishes - that's where “marginal relief” kicks in (not modelled in this simple calculator).
A flat standard deduction of ₹75,000 is auto-applied to salaried income under the new regime - no proof or paperwork needed. After computing tax on the post-deduction figure and applying any 87A rebate, a Health & Education Cess of 4% is added on top. The cess funds healthcare and education initiatives and applies uniformly across all taxpayers.
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