Tax Planning

Old vs New Regime? Computed Side-by-Side.

Model regime comparisons, optimise deduction strategies, plan capital-gains timing, and compute advance-tax liability. Grounded in the actual provisions of the IT Act 1961, the IT Act 2025 (Sec. 202 ↔ Sec. 115BAC), and the latest Finance Act 2025 slab revisions.

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FA 2025 slab changesNew regime — 7 brackets0-4-8-12-16-20-24L revised under Sec. 115BAC; Sec. 87A rebate limit now ₹12L (max ₹60,000)
Advance-tax rulesSec. 207 – Sec. 211 + Sec. 234B/CQuarterly thresholds, senior-citizen exemption, interest on shortfall — all indexed
Capital-gains regimeFA (No.2) 2024Unlisted 24m holding · 12.5% LTCG without indexation · Sec. 112A ₹1.25L exemption
The problem

The dual-regime system forces CAs to run parallel computations for every client. A salaried individual with HRA, 80C, 80D, home-loan interest and NPS contributions may save more under the old regime, or may not. Getting it wrong means the client either overpays tax or faces scrutiny for an incorrect regime election. Add capital gains from property sales, ESOP exercises and mutual-fund redemptions — and the planning matrix becomes unwieldy without structured computation.

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A real question, a cited answer

app.taxmarg.ai · sample answergrounded
For a salaried employee earning ₹12,00,000 in FY 2025-26 (AY 2026-27), what is the total tax under the new regime after the Finance Act 2025 Sec. 87A rebate?
Based on TaxMarg's knowledge and sources3.9s · 4 sources
Under the Finance Act 2025 revised slabs (Sec. 115BAC of IT Act 1961 / Sec. 202 of IT Act 2025): [Sec. 115BAC (↔ Sec. 202 IT Act 2025)] · Gross salary: ₹12,00,000 · Less standard deduction (Sec. 16(ia) / Sec. 19 IT Act 2025): ₹75,000 · Taxable income: ₹11,25,000 [Sec. 16(ia) (↔ Sec. 19 IT Act 2025)] Slab-wise tax: · 0 – 4,00,000 @ 0% → ₹0 · 4,00,001 – 8,00,000 @ 5% → ₹20,000 · 8,00,001 – 11,25,000 @ 10% → ₹32,500 · Tax before rebate: ₹52,500 Sec. 87A rebate (FA 2025): Because taxable income is at or below ₹12,00,000, a full rebate of up to ₹60,000 is available — so the ₹52,500 tax is entirely wiped out. [amendment to Sec. 87A] Net tax: Nil · Cess 4%: Nil · Total: ₹0. Marginal relief applies just above ₹12,00,000 so that tax payable does not exceed the excess of taxable income over ₹12,00,000 — effective nil tax up to approximately ₹12,75,000 gross salary under the new regime. [Sec. 87A proviso]

Every claim above traces to a primary source in our knowledge base

How TaxMarg helps

Old vs New Regime Comparison

Input the client's income profile and deductions. TaxMarg computes tax liability under both regimes using the FA 2025 revised slabs (new) and the unchanged pre-2020 slabs (old), applies the Sec. 87A rebate (₹60K / ₹12L under new, ₹12.5K / ₹5L under old), and shows the exact break-even deduction level where one regime becomes more favourable.

Capital Gains Optimisation

Model the tax impact of selling assets at different times. See how holding period affects STCG vs LTCG treatment (24 months for unlisted shares post FA (No.2) 2024), how the Sec. 112A grandfathering works for listed equity acquired before 01-02-2018, and how harvesting losses under Sections 70 / 71 can offset gains across asset classes.

Advance Tax & Due-Date Planning

Compute quarterly advance-tax instalments under Sec. 210 based on projected income. Get alerts for the 15% / 45% / 75% / 100% quarterly thresholds under Sec. 211, interest implications under Sections 234B and 234C for shortfall, and the Sec. 207 exemption for senior citizens without business income.

What you get back

Structured, exportable output

Regime break-even table — AY 2026-27Assumes ₹75K std (new) / ₹50K std (old). Includes 4% cess and Sec. 87A rebates.
Salary
New regime tax
Break-even deductions
Default winner
₹8,00,000
₹0
≈ ₹2,50,000
New (unless very heavy HRA / 80C)
₹12,00,000
₹0
≈ ₹6,50,000
New (nil tax under Sec. 87A)
₹15,00,000
₹97,500
≈ ₹5,45,000
New (unless HRA + 80C = full)
₹20,00,000
₹1,92,400
≈ ₹7,10,000
New (unless HRA + home loan)
₹25,00,000
₹3,19,800
≈ ₹8,00,000
Close — HRA + 80C + home int tilts old
₹50,00,000
₹10,99,800
≈ ₹8,00,000
Close — depends on deductions

Try these questions

→For a salaried individual earning ₹25 LPA with 80C ₹1.5L, 80D ₹50K for senior-citizen parents, and HRA of ₹3.6L in Mumbai, which regime saves more tax under the FA 2025 slabs?
→If I sell an unlisted share held for 20 months at a gain of ₹8 lakh, is it STCG or LTCG post FA (No.2) 2024 (which raised the unlisted holding period to 24 months)? Can I set off STCL from listed equity against this?
→What is the advance-tax schedule for AY 2026-27 under Sec. 211, and what is the interest under Sec. 234C if the September instalment is missed?
→How does the new Sec. 87A rebate work under the new regime for total income up to ₹12 lakh after the Finance Act 2025 amendment, and how does marginal relief apply just above that?
→Can a taxpayer switch from new regime to old regime for AY 2026-27 if they have business income? What is the one-time option under Sec. 115BAC(6)?
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