Income Tax Calculator
Compare your tax liability under Old and New tax regimes with side-by-side analysis
Income Details
* These deductions apply only to the Old Tax Regime. The New Tax Regime allows standard deduction only.
Tax Comparison
Income Tax Calculator - Old vs New Regime
The Indian Income Tax system offers taxpayers a choice between two tax regimes - the Old Regime with various deductions and exemptions, and the New Regime with lower tax rates but fewer deductions. Understanding the differences between these regimes is essential for optimizing your tax liability.
Old Tax Regime
- Allows deductions under Section 80C (up to 1.5 Lakh), 80D, HRA, LTA, and more
- Tax slabs: Nil up to 2.5L, 5% for 2.5–5L, 20% for 5–10L, 30% above 10L
- Standard deduction of Rs 50,000 for salaried individuals
- Beneficial for those with high deductions (home loan, insurance, PPF, ELSS)
New Tax Regime (Default from FY 2023-24)
- Lower and more tax slabs with reduced rates
- Standard deduction of Rs 75,000 (FY 2025-26)
- Most deductions and exemptions not available
- Better for individuals with fewer investments and deductions
- Rebate under Section 87A available for income up to Rs 12 Lakh
When to Choose Old Regime
- You have significant deductions under 80C, 80D, and other sections
- You receive HRA and pay rent in a metro city
- You have a home loan with interest and principal payments
- Your total deductions exceed Rs 3-4 Lakh annually
When to Choose New Regime
- You have minimal or no tax-saving investments
- You do not pay rent or receive HRA
- You prefer simplicity in tax filing
- Your income is below Rs 12 Lakh (full rebate available)
Using the Income Tax Calculator
Enter your annual income and deductions to instantly compare your tax liability under both the Old and New tax regimes. The calculator helps you determine which regime saves you more tax, enabling informed tax planning decisions.
Frequently Asked Questions
What are the income tax slabs for FY 2025-26?
Under the new regime (default): Up to Rs 4 lakh: Nil; Rs 4-8 lakh: 5%; Rs 8-12 lakh: 10%; Rs 12-16 lakh: 15%; Rs 16-20 lakh: 20%; Rs 20-24 lakh: 25%; Above Rs 24 lakh: 30%. A standard deduction of Rs 75,000 is available. The old regime retains the previous slabs with all deductions and exemptions.
Which tax regime should I choose?
The new regime is better if your total deductions are less than Rs 3-4 lakh. The old regime benefits those claiming significant deductions: HRA, LTA, 80C (Rs 1.5L), 80D (health insurance), NPS 80CCD(1B) (Rs 50k), home loan interest (Section 24), etc. Use this calculator to compare both regimes with your actual numbers.
What is the rebate under Section 87A?
Under the new regime, if your total taxable income is up to Rs 12 lakh (Rs 12.75 lakh for salaried individuals after standard deduction), you pay zero tax due to the Section 87A rebate. This effectively makes income up to Rs 12 lakh tax-free under the new regime.
How do I calculate tax on salary income?
Start with gross salary. Subtract exempt allowances (HRA, LTA under old regime). Subtract standard deduction (Rs 75,000). Subtract Chapter VI-A deductions (80C, 80D, etc. under old regime). Apply tax slab rates to the taxable income. Add cess at 4%. Subtract TDS already deducted to arrive at tax payable or refund due.
How This Calculator Works
Enter your salary details, other income sources, deductions, and exemptions. The calculator computes your tax liability under both the old and new tax regimes, showing a side-by-side comparison. It factors in Section 87A rebate, surcharge, and health and education cess to give your exact payable amount.
Tax-Saving Strategies for Salaried Employees
Maximize 80C investments (ELSS, PPF, EPF), claim 80D for health insurance (Rs 25,000 for self + Rs 50,000 for senior citizen parents), contribute to NPS for 80CCD(1B) (Rs 50,000), optimize HRA through actual rent payments, and use LTA for domestic travel. Plan before March to avoid last-minute tax-saving investments.