Tax Learning Hub
Compare Old vs New tax regimes and learn about structural tax harvesting.
Tax Calculator Inputs
Old Regime Deductions
New Regime
You save ₹1,01,400 by using this regime.
Old Tax Regime
FY 2025-26 / FY 2026-27New Tax Regime
Default • Budget 2025Core Tax Strategies You Should Understand
1. Tax Harvesting (LTCG)
Long Term Capital Gains (LTCG) on equity investments are tax-free up to ₹1.25 Lakhs per year.
How to use this: Every financial year, you can sell mutual funds/stocks that have accrued gains up to ₹1.25L and reinvest the money immediately. This resets your purchase price higher, legally avoiding future tax.
2. PPF vs NPS (Asset Lock-ins)
PPF (Public Provident Fund): EEE status (Exempt on deposit, Exempt on interest, Exempt on withdrawal). Highly secure but locked for 15 years.
NPS (National Pension Scheme): EET status. Locked until age 60. NPS allows equity exposure (up to 75%), which generally yields higher compounding rates than PPF over 20+ years.
Budget 2025 Rules & Switch Guidelines
• New Tax Regime Slabs (FY 2025-26): Exempt up to ₹4 Lakhs. Slabs: ₹4L–8L (5%), ₹8L–12L (10%), ₹12L–16L (15%), ₹16L–20L (20%), ₹20L–24L (25%), Above ₹24L (30%).
• Section 87A Rebate: Tax liability is fully rebated up to ₹12 Lakhs taxable income (making it ₹0 tax). When combined with the ₹75,000 standard deduction, a salaried employee earning up to ₹12.75 Lakhs pays NIL tax.
• Switching Guidelines: Salaried individuals can switch between the Old and New tax regimes every financial year. Taxpayers with business or professional income (e.g. freelancers, consultants, business owners) can only switch regimes once in their lifetime.
⚠️ Educational Disclaimer: Tax estimations are based on current Union Budget 2025 interpretations. Actual calculations can vary based on specific perks, exemptions, and professional profiles. Always consult a qualified CA or tax professional before filing taxes.