“We don't tell what to pick, we tell how to pick”

Advanced Income Tax Hub

Compare Old vs. New regimes (FY 2025-26 rules) and model the silent impact of Inflation-driven Bracket Creep.

💡 Motto: We don't tell what to pick, we tell how to pick.

Salary & Deduction Settings

Old Regime Deductions

Sec 80C (PPF, ELSS, EPF)
Sec 80D (Health Premium)
HRA Exemption Claim
Home Loan Interest (Sec 24b)
NPS Voluntary (80CCD(1B))
Old Regime Tax

₹1,01,400

Deductions: ₹2,25,000
New Regime Tax

₹0

Standard Deduct: ₹75,000
Preferred Regime

New Regime

Saves you ₹1,01,400 / yr

FY 2025-26 / FY 2026-27 Slabs (New Regime)

Up to ₹4 Lakhs

No Tax

₹4L - ₹8 Lakhs

5% Tax

₹8L - ₹12 Lakhs

10% Tax

₹12L - ₹16 Lakhs

15% Tax

💡 **Rebate Rule:** Income tax is completely **waived (zero)** under Section 87A if taxable income does not exceed **₹12 Lakhs** in the New Regime.

The Bracket Creep Simulator (Inflation Tax)

See how inflation-aligned wage increases push you into higher tax brackets, hiking your real tax rate even if your purchasing power doesn't change.

Creep Settings

Annual Salary Growth (%)
%
*Typically matches or slightly beats average inflation.
Expected Inflation Rate
%
Simulation Tenure (Years)
Yrs
⚠️ The Bracket Creep Warning:If your salary grows by 5% annually to match inflation, your real purchasing power stays exactly the same. However, because tax brackets are fixed in nominal terms, you will slide into higher tax brackets. Over 10 years, your effective tax rate climbs from 0% to 9.36%! You are paying more tax on the *same* real purchasing power.

Rising Effective Tax Rate over Time