Salary Calculator India 2026

It depends on how much you claim in deductions. If you invest heavily in Section 80C (EPF, ELSS, PPF, etc.), pay significant home loan interest, or claim a large HRA exemption, the Old Regime often works out cheaper. If your deductions are modest, the New Regime's lower slab rates usually win. There's no universal answer — compare both using your actual salary and deduction figures, which is what this calculator does.

House Rent Allowance (HRA) is tax-free (Old Regime only) up to the minimum of three values: (1) actual HRA received, (2) 50% of basic salary for the eight metro cities (Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad from FY 2026-27) or 40% elsewhere, (3) rent paid minus 10% of basic salary. You need a valid rent agreement and, for larger amounts, your landlord's PAN to support the claim. The New Regime does not offer an HRA exemption.

Yes — salaried individuals (with no business income) can choose their regime freely each year when filing their return, with no separate form required. The regime choice must be made by the ITR filing due date (typically 31 July for most salaried taxpayers); filing a belated return after that deadline locks you into the New Regime for that year.

Gross salary is your total salary before any deductions (basic + HRA + allowances, etc.). Taxable income is gross salary minus applicable deductions — standard deduction, HRA exemption, Section 80C/80D, and others depending on your regime. Income tax is calculated on taxable income, not gross salary.

Section 80C (Old Regime only) allows a combined deduction of up to ₹1,50,000/year across eligible investments and payments: EPF contributions, PPF, ELSS mutual funds, life insurance premiums, home loan principal repayment, NSC, and a few others. Unused 80C headroom cannot be carried forward to the next financial year — it must be used within the same year.