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Income Tax Calculator

Taxes

Compare your income tax under both the New and Old regimes for FY 2024-25 and instantly see which one leaves more money in your pocket.

In short: The Income Tax Calculator is a free online tool that lets you compare income tax under the New and Old regimes and find which saves you more — instantly, with charts, a worked example and the exact formula.

Your inputs

/year
₹12,00,000
₹2.5L₹1Cr

Total salary income before deductions.

₹1,50,000
₹0₹5L

Total of 80C, HRA and other deductions claimed under the Old regime.

New regime tax

₹75,400

Incl. 4% cess

Old regime tax

₹1,32,600

After ₹1,50,000 deductions

Recommended: New regime

₹57,200

You save this much

New vs Old regime tax

Total tax payable under each regime, including 4% cess.

Slab-wise breakdown (recommended regime)

Slab-wise breakdown (recommended regime)
ComponentTax
5% band₹20,000
10% band₹30,000
15% band₹22,500
Health & education cess (4%)₹2,900
Total tax₹75,400

Slab tax for the cheaper regime, plus 4% health & education cess.

How the Income Tax Calculator works

Formula

Tax = Σ (income in slab × slab rate) + 4% cess • pick min(New, Old)
New regime
₹50,000 standard deduction, §87A rebate up to ₹7L
Old regime
Deductions (80C, HRA…), §87A rebate up to ₹5L
cess
4% health & education cess on tax

Step-by-step calculation

Worked with the default values.

  1. 1

    New regime taxable income

    ₹12,00,000 − ₹50,000 std. deduction

    = ₹11,50,000

  2. 2

    Old regime taxable income

    ₹12,00,000 − ₹1,50,000 deductions

    = ₹10,50,000

  3. 3

    Lower tax (New regime)

    min(New tax, Old tax) incl. 4% cess

    = ₹75,400

How it works

  • The New regime uses lower slab rates but allows only the ₹50,000 standard deduction.
  • The Old regime has higher rates but lets you claim 80C, HRA and other deductions.
  • Both add a 4% cess; the calculator picks whichever regime yields the lower total tax.

Examples

₹12,00,000 income with ₹1,50,000 deductions

New regime is usually cheaper as taxable income falls in mid slabs after the standard deduction.

₹15,00,000 income with ₹4,00,000 deductions

Heavy deductions can tip the balance toward the Old regime — the calculator flags the winner.

Understanding the Income Tax Calculator

New vs Old tax regime — the core choice

Every salaried taxpayer in India now decides between two systems. The New regime offers lower slab rates but strips away most deductions, allowing only the ₹50,000 standard deduction and a handful of others. The Old regime keeps higher rates but lets you claim a wide range of deductions — 80C, HRA, home-loan interest, 80D and more. This calculator computes tax under both for your income and flags the cheaper one.

How the maths works

For each regime, tax is the sum of income falling in each slab multiplied by that slab's rate:

  • The New regime applies the ₹50,000 standard deduction, then taxes the balance at its slab rates.
  • The Old regime subtracts your total deductions first, then applies its slab rates.
  • Both add a 4% health and education cess on the tax, and both offer a §87A rebate that makes tax nil up to ₹7 lakh (New) or ₹5 lakh (Old) of taxable income.

When each regime wins

The decision hinges on how much you can deduct:

  • With few deductions, the New regime's lower rates usually produce a smaller bill.
  • With large deductions — a full ₹1.5 lakh under 80C, substantial HRA, ₹2 lakh of home-loan interest — the Old regime can overtake it.

There is a crossover point where your deductions exactly offset the rate difference; the calculator finds it for your exact numbers so you don't have to guess.

Beyond this estimate

This tool covers slab tax and cess on salary income. Keep in mind it does not model:

  • Surcharge on incomes above ₹50 lakh.
  • Capital gains and other special-rate incomes, which are taxed separately.
  • Section-by-section validation of each deduction's cap.

Use the result as a fast, reliable guide to pick your regime and plan investments, then confirm the final figures with your Form 16 or a tax professional before filing.

Pros

  • Compares both regimes side by side and names the cheaper one for your numbers.
  • Includes the ₹50,000 standard deduction and 4% cess automatically.
  • Accounts for the §87A rebate that makes tax nil up to ₹7L (New) / ₹5L (Old).
  • Helps decide whether your 80C, HRA and other deductions justify the Old regime.
  • Gives a quick, no-login estimate before you finalise investments or declarations.

Cons

  • Models slab tax and cess only — surcharge on high incomes is not included.
  • Assumes salary income; capital gains and special-rate incomes need separate handling.
  • Uses a single deductions figure rather than validating each section's limit.
  • Does not reflect mid-year changes such as job switches or arrears.

Tips

  • 1Total up all your Old-regime deductions (80C, HRA, 80D, home-loan interest) before comparing.
  • 2If your deductions are modest, the New regime's lower rates usually leave you better off.
  • 3Max out Section 80C (₹1.5L) and 80D health-insurance limits if you stay on the Old regime.
  • 4Use employer NPS under 80CCD(2) — it is allowed even in the New regime.
  • 5Revisit the regime choice each year, as your deductions and income change.

Frequently asked questions

Everything you need to know about the Income Tax Calculator.

Which regime is better for me?
It depends on your deductions. With few deductions the New regime usually wins; with large 80C, HRA and home-loan claims the Old regime can be cheaper. This calculator compares both for your numbers.
Is the standard deduction included?
Yes. The New regime figure already applies the ₹50,000 standard deduction. For the Old regime, enter your total deductions in the deductions field.
What is the §87A rebate?
It makes tax nil for taxable income up to ₹7L under the New regime and ₹5L under the Old regime, so many lower-income taxpayers pay zero tax.
Does this include surcharge?
No. The calculator covers slab tax and the 4% cess. A surcharge applies only to very high incomes (above ₹50L) and is not modelled here.
Can I switch between the New and Old regime every year?
Salaried individuals without business income can choose afresh each financial year. Those with business or professional income can opt out of the New regime only once, and switching back is restricted. The New regime is now the default unless you actively elect the Old one.
Which deductions are allowed under the New regime?
The New regime disallows most popular deductions like 80C, HRA and 80D, but does allow the ₹50,000 standard deduction, employer NPS contribution under 80CCD(2) and a few others. If your total deductions are small, the New regime's lower slab rates usually win.
What is Section 80C and what falls under it?
Section 80C lets you deduct up to ₹1.5 lakh a year under the Old regime for investments and expenses like EPF, PPF, ELSS mutual funds, life insurance premiums, principal on a home loan, tuition fees and 5-year tax-saving FDs. It is the most-used deduction for salaried taxpayers.
How is the 4% cess calculated?
The health and education cess is 4% levied on the tax amount after the §87A rebate, not on your income. So if your slab tax is ₹50,000, the cess adds ₹2,000, making the total ₹52,000. This calculator includes the cess in both regime figures.
Do I still need to file a return if my tax is nil?
Filing is mandatory if your gross income exceeds the basic exemption limit, even when the §87A rebate makes your final tax zero. Filing also helps claim TDS refunds, carry forward losses and serves as income proof for loans and visas.
Is the ₹50,000 standard deduction available in both regimes?
Yes. From FY 2023-24 onwards the ₹50,000 standard deduction for salaried taxpayers and pensioners applies under both the Old and New regimes. This calculator already applies it to the New regime figure automatically.

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