Income Tax Calculator
* Tax slabs are subject to change during the Union Budget. Always consult a CA.
Income & Deductions
Applied to both regimes for salaried individuals.
Exemptions & Deductions Old Regime Only
Tax Comparison
New Tax Regime
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Old Tax Regime
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You save ₹ by choosing the !
Your tax liability is the same under both regimes.
Old vs New Tax Regime: Which Should You Choose?
The Indian Government has introduced a simplified New Tax Regime with lower tax slab rates but without most of the traditional exemptions. Deciding whether to stick with the Old Regime (which requires heavy investments in 80C, health insurance, etc.) or switch to the New Regime is the biggest financial decision taxpayers face every year.
The New Tax Regime (Default)
The New Regime is designed to put more disposable income in your hands without forcing you to lock up your money in tax-saving instruments. As of the recent budgets, the New Regime is the default option.
- Zero Tax up to ₹7 Lakhs: If your net taxable income is ₹7 Lakhs or less (₹7.5 Lakhs gross with the standard deduction), you pay zero tax due to the Section 87A rebate.
- Standard Deduction: A flat ₹50,000 standard deduction is now available for salaried employees under the New Regime.
- No Exemptions Required: You do not need to submit rent receipts (HRA) or invest in ELSS/PPF just to save tax.
The Old Tax Regime
The Old Regime has higher tax slab rates but allows you to reduce your taxable income significantly through various deductions. If you are already paying a high home loan EMI or paying high rent (HRA), the Old Regime might still be beneficial for you.
Section 80C
Deduction up to ₹1.5 Lakhs for investments in PPF, EPF, ELSS Mutual Funds, Life Insurance Premiums, and principal repayment of a Home Loan.
Section 24(b)
Deduction up to ₹2 Lakhs on the interest paid towards a Home Loan for a self-occupied property.
HRA (House Rent Allowance)
Exemption based on rent paid, provided you live in a rented house and receive HRA as part of your salary components.
Section 80D
Deduction for medical insurance premiums paid for yourself, spouse, children (up to ₹25,000) and parents.
* Note: This calculator provides an estimate based on the standard tax slabs and rules for the financial year. It includes the 4% Health and Education Cess. Surcharge for income above ₹50 Lakhs is not factored into this simplified tool. Always consult a certified CA for filing your returns.