Download the latest Old vs New Tax Regime Calculator Excel calculator to compare old and new tax regimes for FY 2024–25/26. Find which regime suits you best with smart tax planning tips.
Introduction: Making the Right Tax Choice Just Got Simpler
Filing your taxes correctly is one thing — choosing the right tax regime is another. For Indian salaried individuals and government employees, the decision between the old vs new tax regime isn't always straightforward. That's where our expertly built Excel-based calculator for FY 2025–26 steps in.
Whether you're juggling deductions under 80C or simply want to keep it hassle-free, this article helps you do more than just download a calculator. It guides you on how to use it, explains the latest tax rule changes, and gives you real-life scenarios to understand which regime can help you save the most.
Why You Need an Excel Calculator to Compare Old vs New Regimes
Most online calculators show quick estimates, but they don't let you experiment. An Excel-based calculator gives you full control — you can enter exact salary components, deduction amounts, and simulate different investment declarations.
Plus, the Budget 2025–26 brought in significant tax changes that should make every taxpayer reconsider their current choice. Our Excel calculator is fully updated to reflect these changes, making it one of the most accurate and practical tools available.
Budget 2025–26 Updates That Impact Your Tax Choice
Before you decide which tax regime is right for you, it’s essential to understand what’s new in the Union Budget 2025. The government made a clear push toward the new regime by enhancing benefits while keeping the old regime intact for those who rely on deductions.
Here's a quick comparison of the key elements between the two:
| Tax Element | Old Regime (FY 2025–26) | New Regime (FY 2025–26) |
|---|---|---|
| Standard Deduction | ₹50,000 | ₹75,000 |
| Section 80C (Investments) | Up to ₹1,50,000 | Not allowed |
| Section 80D (Health) | Available | Not allowed |
| HRA / LTA / Home Loan | Allowed | Not allowed |
| Rebate u/s 87A | Up to ₹5,00,000 (taxable income) | Up to ₹7,00,000 (raised to ₹12L) |
| Tax Slabs | More segmented | Flat & simplified (0 to 30%) |
| Marginal Relief | Not available | Available up to ₹12,50,000 income |
These updates — especially the hike in standard deduction and expansion of rebate under the new tax regime — mean that even middle-income taxpayers who used to benefit from Section 80C may now find the new regime more lucrative.
To read the complete Budget summary, you can refer to the Ministry of Finance official release or the ET Wealth Budget 2025 analysis.
How to Use the Excel Calculator (Quick Steps)
Our downloadable Excel tool has been designed for anyone with basic spreadsheet knowledge. Here’s how it works:
- Open the file in Microsoft Excel or Google Sheets.
- Enter your gross annual income (basic pay, allowances, bonuses, etc.).
- Input deductions (if choosing the old regime) like 80C investments, 80D medical insurance, HRA exemptions, etc.
- The sheet will automatically:
- Compute taxable income under both regimes
- Apply relevant slabs and rebates
- Show tax payable under each
- Suggest which regime is more tax-efficient for your scenario
The Excel calculator uses conditional formatting to highlight the better option — so the decision is visually obvious, not just numeric.
Step-by-Step Guide to Using the Old vs New Tax Regime Calculator Excel
Once you’ve downloaded the calculator, putting it to use is easy — but understanding each section properly ensures you get accurate results. This Excel sheet has been designed to reflect the FY 2025–26 income tax slabs, deductions, and rebate conditions as per the latest updates.
The calculator is split into clearly labeled sections for income input, deduction entries, and regime-wise tax computation. Here’s a quick walkthrough.
1. Enter Your Basic Income Details
Start by entering your gross annual salary, which typically includes:
- Basic Pay
- Dearness Allowance (DA)
- House Rent Allowance (HRA)
- Other allowances (e.g., travel, special, city compensatory, etc.)
The calculator uses this data to determine your total income before deductions. It will also automatically apply standard deduction amounts based on your regime choice.
2. Input Your Eligible Deductions (for Old Regime)
The old regime allows a wide range of deductions under various sections of the Income Tax Act. This section of the Excel file enables you to enter values under:
- Section 80C: Investments like PPF, ELSS, LIC, EPF, etc. (up to ₹1.5 lakh)
- Section 80D: Medical insurance premiums
- Home Loan Interest: Under Section 24(b), up to ₹2 lakh
- HRA Exemption: Based on city, rent paid, and salary breakup
- NPS Contributions: Employee or employer share (Section 80CCD)
Each of these fields is pre-formatted, so you can simply plug in your amounts. The sheet auto-calculates the total deduction and adjusts your taxable income accordingly.
3. Tax Calculation & Side-by-Side Regime Comparison
After entering your data, scroll to the results section. The calculator simultaneously computes:
- Tax payable under old regime
- Tax payable under new regime
- Difference in total tax
- Suggestion on which regime is more beneficial
It uses the latest slab structures including surcharge, cess, and rebate under Section 87A. Here’s a sample representation of how the result is displayed in the calculator:
| Regime Type | Taxable Income | Total Tax Payable | Suggestion |
|---|---|---|---|
| Old Regime | ₹9,20,000 | ₹54,600 | - |
| New Regime | ₹9,20,000 | ₹46,800 | ✅ Opt New |
In this example, although the taxable income remains the same, the new regime offers a lower tax liability. The Excel tool highlights the preferred regime visually for easier decision-making.
4. Real-Time Flexibility to Recalculate
Want to test different deduction scenarios? The sheet is fully editable. You can:
- Modify 80C amounts to simulate new investment declarations
- Add or remove housing loan interest values
- Update annual salary after increments or promotions
This flexibility makes it a valuable tool not just during tax filing, but also during investment planning throughout the year. It aligns with updated norms from the Income Tax Department’s official website and incorporates rebate updates as explained in this ClearTax analysis.
Sample Scenarios: Old vs New Tax Regime in Real Life
Understanding theoretical tax differences is one thing. Seeing real examples helps you grasp how the choice of regime plays out in day-to-day income situations. Here are two common taxpayer profiles simulated using the Old vs New Tax Regime Calculator Excel to demonstrate practical outcomes.
Scenario A: Salaried Employee with Deductions
Profile:
- Gross Annual Income: ₹12,00,000
- Investments under Section 80C: ₹1,50,000
- Medical Insurance (80D): ₹25,000
- Home Loan Interest (Section 24): ₹1,80,000
- HRA Exemption: ₹90,000
- NPS (80CCD1B): ₹50,000
Tax Calculation Summary:
| Details | Old Regime | New Regime |
|---|---|---|
| Gross Income | ₹12,00,000 | ₹12,00,000 |
| Total Deductions | ₹5,95,000 | Not Applicable |
| Taxable Income | ₹6,05,000 | ₹11,25,000 |
| Tax Payable (incl. cess) | ₹17,160 | ₹72,800 |
| Best Option | ✅ Old Regime |
In this case, the old regime offers significant savings thanks to extensive deductions. Anyone with planned investments and eligible exemptions benefits more from the traditional method.
Scenario B: Salaried Employee with No Deductions
Profile:
- Gross Annual Income: ₹10,50,000
- No investments or deductions claimed
Tax Calculation Summary:
| Details | Old Regime | New Regime |
|---|---|---|
| Gross Income | ₹10,50,000 | ₹10,50,000 |
| Total Deductions | Nil | Not Applicable |
| Taxable Income | ₹10,00,000 | ₹9,75,000 |
| Tax Payable (incl. cess) | ₹78,000 | ₹41,600 |
| Best Option | ✅ New Regime |
For taxpayers who do not invest or claim deductions, the new tax regime offers a cleaner, lower-tax path, with no documentation or proof requirements.
These examples reflect the updated slab rules introduced in the budget and detailed on the Press Information Bureau’s official page. You can always adjust these inputs in your downloaded calculator file to see how different decisions affect your own tax liability.
Choosing Between Old and New Tax Regimes: Key Factors to Consider
There's no one-size-fits-all answer. Your ideal tax regime depends on multiple personal financial variables. Before locking in your choice for the year, ask yourself:
- Do you invest consistently under 80C and 80D?
- Are you paying interest on a housing loan?
- Are you receiving HRA, and do you live in rented accommodation?
- Do you prefer lower deductions with less documentation?
If you answered yes to most of the above, the old regime may still offer more savings. However, if you're in a higher income bracket and do not claim deductions, the new tax regime is often simpler and more rewarding.
A good rule of thumb is to simulate your current and expected finances using tools like the official tax comparison utility to make an informed decision.
Tax-Saving Opportunities Under Old and New Regimes
Choosing the right tax regime doesn't just impact how much you pay — it shapes your entire savings and investment strategy for the year. While the old tax regime rewards structured planning through various exemptions, the new tax regime aims to offer simplified compliance with fewer conditions.
Here’s a breakdown of the major tax-saving opportunities under each regime:
Old Tax Regime: Structured Deductions for Savers
The old regime continues to favour individuals who proactively invest and plan their finances. It includes a wide array of deduction options under different sections of the Income Tax Act.
| Deduction Type | Section | Limit (FY 2025–26) |
|---|---|---|
| Life Insurance, PPF, ELSS | 80C | ₹1,50,000 |
| Health Insurance Premium | 80D | ₹25,000 to ₹1,00,000 |
| Home Loan Interest (Self-Occupied) | 24(b) | ₹2,00,000 |
| Education Loan Interest | 80E | No upper limit |
| Donations (With 80G Approval) | 80G | 50% or 100% as allowed |
| NPS Employee Contribution | 80CCD(1B) | ₹50,000 additional |
Taxpayers with home loans, family insurance plans, or long-term investments find the old regime beneficial. These deductions not only lower tax but also help build financial discipline. The official Income Tax Handbook provides a detailed list of all allowable deductions under various sections.
New Tax Regime: Fewer Conditions, Lower Slabs
The new regime skips the deductions but compensates with reduced tax rates and a higher standard deduction. It is especially effective for:
- Young professionals with minimal financial commitments
- High-income earners who don’t invest for exemptions
- Freelancers or consultants without structured salaries
Here’s what you still get under the new regime:
| Allowed Benefit | Section | Availability |
|---|---|---|
| Standard Deduction (₹75,000) | Direct | ✔️ Yes |
| EPF/NPS Employer Contribution | 80CCD(2) | ✔️ Yes |
| Transport/Conveyance Reimbursement | Notified Benefits | ✔️ Yes (in certain cases) |
| Rebate under Section 87A | Up to ₹12,00,000 | ✔️ Yes |
Even though popular deductions like 80C and 80D are not applicable, salaried individuals still benefit from employer-side contributions to retirement plans. This makes the regime attractive for those whose employers offer structured financial benefits.
To learn more about the structure and impact of the new regime, NPS Trust India offers helpful insights on employer contributions, and the Ministry of Finance notifications provide clarity on evolving provisions.
Which Approach is Right for You?
- Choose Old Regime If: You actively invest in ELSS, pay insurance premiums, or have ongoing EMIs for home loans.
- Choose New Regime If: You have a straightforward income structure and prefer fewer documentation requirements.
Remember, the Income Tax Department allows you to switch regimes every year, provided you don’t have business income. This means your decision isn’t permanent—you can revisit it annually based on your circumstances.
Questions About Old vs New Tax Regime Calculator Excel
To help you navigate the income tax process smoothly, here are some of the most commonly asked questions regarding the use of the Old vs New Tax Regime Calculator Excel, its accuracy, and the rules that govern each regime.
Can I switch between old and new regimes every year?
Yes, salaried individuals and pensioners are allowed to choose between the old and new tax regimes every financial year. This flexibility allows you to evaluate your deductions and compare the benefits using tools like the Excel calculator before finalising your choice.
However, individuals with business or professional income must follow a more restrictive rule — once they opt for the new regime, they can switch back to the old regime only once in their lifetime, unless they cease their business income. You can find the official guideline under Section 115BAC of the Income Tax Act.
Is the Excel calculator approved by any authority?
While the calculator provided is based on the latest government slabs and rebate rules, it is an unofficial tool built for guidance and personal financial planning. It follows the official slabs published in the Union Budget 2025–26 and is aligned with the computations shared by the Central Board of Direct Taxes (CBDT).
For final filing, you should still refer to your Form 16, AIS, and pre-filled return form available on the Income Tax e-filing portal.
How do I know if the tax calculation is correct?
The Excel calculator uses standard formula logic for both regimes, factoring in:
- Slab-wise calculation including health and education cess (4%)
- Section 87A rebate for eligible income brackets
- Standard deduction as per the regime
- Limitations and eligibility on each deduction
You can cross-check the output with results from the official tax calculator available on the Income Tax Department’s website.
Will the Excel calculator work on mobile?
Yes. You can open the Excel file using:
- Microsoft Excel mobile app
- Google Sheets on Android or iOS
- Any spreadsheet reader supporting
.xlsxformat
Make sure to enable formula execution and avoid altering locked cells to preserve its accuracy.
Do I need to upload this Excel anywhere?
No. The calculator is meant for offline use only. It’s a personal-use tool to help you decide between the regimes — it is not to be uploaded to any government portal. When you file your taxes, simply select your chosen regime in your ITR form and submit details accordingly.
Is there any difference in slab rates under the two regimes?
Yes. The slab structures are different under each regime. Here’s a simplified view for FY 2025–26:
| Income Slab | Old Regime Rate | New Regime Rate |
|---|---|---|
| Up to ₹2.5L | Nil | Nil |
| ₹2.5L – ₹5L | 5% | 5% |
| ₹5L – ₹7L | 10% | 10% |
| ₹7L – ₹9L | 15% | 15% |
| ₹9L – ₹12L | 20% | 20% |
| ₹12L – ₹15L | 30% | 25% |
| Above ₹15L | 30% | 30% |
Under the new regime, the rebate under Section 87A now applies to incomes up to ₹12,00,000, effectively offering full tax relief to many middle-income earners — a move well covered in the ET Budget summary.
Download the Old vs New Tax Regime Calculator Excel (FY 2025–26)
Now that you’ve understood the detailed comparison, practical examples, and deduction eligibility, it’s time to take control of your taxes. The Old vs New Tax Regime Calculator Excel is designed to be your personal tax decision-making assistant.
It’s updated for FY 2025–26 and can be downloaded freely. The file includes:
- Regime-wise slab structure
- Editable fields for income, exemptions, and deductions
- Built-in logic for standard deduction and Section 87A rebate
- Automated suggestion of the most tax-saving option
You can download it, use it offline, and run multiple simulations to suit various salary structures or investment scenarios. Make sure to keep a backup copy before editing formulas. For those new to tax planning, the calculator offers a transparent way to understand how income tax works without guesswork.
This tool is inspired by commonly accepted calculation practices and is similar to formats used in official employer projections and trusted financial platforms like Groww or TaxGuru.
Conclusion: Make an Informed Tax Regime Choice
Choosing between the old and new tax regime is more than just a checkbox on your ITR form—it’s a financial decision that affects how much you save, spend, and invest through the year.
Let’s summarise the key points:
- Use the Excel calculator to enter your actual income and deduction details
- Evaluate both regimes objectively based on your financial habits
- Understand that there is no permanent lock-in for salaried individuals—you can revise your choice each financial year
- Stay updated on tax announcements and tweaks to rebate limits or deduction ceilings
Whether you're a government employee with a structured salary and allowances, or a private-sector earner with flexible income, the Old vs New Tax Regime Calculator Excel helps you find the most cost-effective route.
FAQ
What is the Old vs New Tax Regime Calculator Excel?
It is an Excel tool that compares your income tax under both old and new regimes to help you decide which one is more beneficial.
Can I switch tax regimes every year?
Yes, salaried individuals can switch between the old and new tax regimes every financial year unless they have business income.
Does the new tax regime allow deductions like 80C?
No, most deductions including 80C, 80D, and HRA are not available under the new regime, except standard deduction and employer NPS contribution.
Who should use the old tax regime?
Those with significant deductions such as housing loan interest, investments under 80C, and HRA claims may benefit more from the old regime.
Is the calculator accurate for FY 2025–26?
Yes, it’s built on the latest budget updates and tax slabs applicable for the FY 2025–26 as released in the Union Budget.
Is this Excel calculator free to use?
Yes, the calculator is absolutely free and can be used offline on Excel, Google Sheets, or any spreadsheet software.
Will this Excel calculator work on mobile?
Yes, it works on the Microsoft Excel app, Google Sheets mobile version, and other mobile-compatible spreadsheet platforms.
Does the new regime offer any tax rebate?
Yes, under Section 87A, the new regime now offers a rebate on income up to ₹12 lakh, which significantly lowers tax for middle-income earners.
Please do not enter any spam link in comment box. Thank you!