At a ₹25 lakh salary, neither tax regime is automatically lower. The result depends on taxable income composition, eligible deductions and exemptions, and the law for the period being calculated.
Period used by NiyamFin
The current calculator models FY 2025-26 / AY 2026-27. It applies the period's slabs, salaried standard deductions, relevant rebate logic and 4% cess. It does not fully model surcharge, marginal relief, special-rate income, house-property loss carry-forward or every filing adjustment.
Compare complete inputs
An old-regime estimate should include only eligible amounts, such as a correctly calculated HRA exemption, qualifying Section 80C payments, eligible Section 80D and Section 80CCD amounts, and applicable Section 24(b) interest. Limits are ceilings, not automatic entitlements.
The new-regime estimate must use only provisions available under that regime. Employer NPS treatment depends on the actual contribution and current statutory scope.
Two people with ₹25 lakh salaries can obtain different answers because rent, salary structure, house-property facts and special-rate income differ. A fixed “switch above this amount” instruction is not a reliable general rule.
Common mistakes
- Treating CTC as taxable salary without checking its components.
- Counting product purchases before checking eligibility.
- Assuming self-occupied and let-out property treatment is identical.
- Treating employer TDS as the final regime result.
- Applying one period's values to another without verification.
Use the New vs Old Tax Regime Calculator with actual figures and obtain filing-specific review where material facts are omitted.
Sources
- Income Tax Department: Salaried individuals, AY 2026-27
- Income Tax Department: New versus old tax regime FAQs
Educational information, not tax advice.