Income Tax Calculator
How this calculator works
The new regime uses a ₹75,000 standard deduction, slabs rising to 30% above ₹24 lakh and a rebate that makes income up to ₹12 lakh tax-free. The old regime uses a ₹50,000 standard deduction plus the deductions you enter. Both add 4% cess. Surcharge for income above ₹50 lakh is not included.
Tax rules change in each Budget. Always confirm slabs on the Income Tax Department website before filing.
Worked example: ₹15 lakh salary
Under the new regime, after the ₹75,000 standard deduction the taxable income is ₹14.25 lakh. Tax comes to about ₹93,750 before cess, or about ₹97,500 with 4% cess. Under the old regime with ₹1.5 lakh of deductions (such as 80C) and a ₹50,000 standard deduction, the taxable income is ₹13 lakh. Tax is about ₹2,02,500 before cess, or about ₹2,10,600 with cess. In this case the new regime saves roughly ₹1.13 lakh.
When might the old regime win?
The old regime can be better if you claim large deductions: for example home loan interest, HRA, 80C investments, health insurance and the NPS employer contribution. Add them up and enter the total in the calculator to compare honestly.
Tips
- Compare both regimes every year, because your deductions and income change.
- Keep proof for every deduction you claim.
- Employees can usually choose a regime with their employer each year, but check the rules for your situation.
What is not included
This calculator is for a salaried individual. It does not include surcharge for very high incomes, capital gains, business income, or special rates. Slabs and rebates change in the Budget, so always check the Income Tax Department website before you file.
Frequently asked questions
Which regime is better?
The new regime usually wins unless your deductions are large. Enter your real deductions to compare.
Is income up to ₹12 lakh really tax-free?
Under the new regime, the rebate makes tax zero for taxable income up to ₹12 lakh as per the rules this calculator uses. With the standard deduction, salaried people can earn a little more before tax applies. Confirm current rules on the official website.
Does this include cess?
Yes. A 4% health and education cess is added to the tax.