Income Tax Estimator
Compare tax liabilities under the Old vs. New Indian tax regimes side-by-side with deductions.
Salary & Exemptions
₹
₹100,000₹10,000,000
Old Regime Deductions
₹
₹0₹200,000
₹
₹0₹500,000
₹
₹0₹50,000
₹
₹0₹100,000
₹
₹0₹500,000
Tax Comparison Summary
Old Regime Tax Due
₹101,400
8.5% of salary New Regime Tax Due
₹71,500
6.0% of salary Net Savings
₹29,900
Save via New Regime New Regime is Better
New Tax Regime is Recommended
With your current investments & exemptions of ₹2,25,000, you save ₹29,900 by choosing the New Tax Regime. The New Regime offers lower tax rates and a higher Standard Deduction of ₹75,000 without requiring any investment proof.
Slab Optimization Suggestion
To make the Old Regime optimal for your salary, you would need additional investments & deductions of at least ₹1,50,500 under Section 80C, HRA, or other sections.
Old Tax Regime Slabs
| Tax Slab | Rate | Income in Slab | Tax Charged |
|---|---|---|---|
| ₹0 to ₹2.5 Lakhs Active | 0% | ₹250,000 | ₹0 |
| ₹2.5 to ₹5.0 Lakhs Active | 5% | ₹250,000 | ₹12,500 |
| ₹5.0 to ₹10.0 Lakhs Active | 20% | ₹425,000 | ₹85,000 |
| Above ₹10.0 Lakhs | 30% | ₹0 | ₹0 |
New Tax Regime Slabs
| Tax Slab | Rate | Income in Slab | Tax Charged |
|---|---|---|---|
| ₹0 to ₹3.0 Lakhs Active | 0% | ₹300,000 | ₹0 |
| ₹3.0 to ₹7.0 Lakhs Active | 5% | ₹400,000 | ₹20,000 |
| ₹7.0 to ₹10.0 Lakhs Active | 10% | ₹300,000 | ₹30,000 |
| ₹10.0 to ₹12.0 Lakhs Active | 15% | ₹125,000 | ₹18,750 |
| ₹12.0 to ₹15.0 Lakhs | 20% | ₹0 | ₹0 |
| Above ₹15.0 Lakhs | 30% | ₹0 | ₹0 |
Understanding Income Tax Regimes
India offers two distinct personal tax systems: the Old Tax Regime (which allows multiple exemptions and savings deductions) and the New Tax Regime (which offers lower tax slab rates but strips away most exemptions).
Mathematical Formula
\text{Tax} = \text{Slab Tax} - \text{Sec 87A Rebate} + 4\%\text{ Cess}
Formula Explanation:
- Standard Deduction: Flat ₹75,000 for New Regime, ₹50,000 for Old Regime.
- Sec 87A Rebate: Zero tax for taxable income up to ₹7,00,000 (New Regime) or ₹5,00,000 (Old Regime).
- Exemptions (Old Regime): Sec 80C (up to 1.5L), Sec 80D (medical), HRA, Sec 24 (home loan interest).
Terms & Abbreviations
CTC Cost to Company - your total gross salary package.
80C Exemption section for investments like PPF, ELSS, EPF, and Life Insurance.
Rebate 87A Tax rebate that completely wipes out tax liability for lower income brackets.
Cess Health & Education Cess (flat 4% added to the tax amount).
Frequently Asked Questions
The New Regime is generally better if your total tax-saving deductions (like Section 80C, HRA, and Section 80D) are low. The Old Regime becomes optimal only if your total deductions exceed a specific "break-even point" (roughly ₹2.5 Lakhs for gross income of ₹10L, ₹3.75 Lakhs for gross income of ₹15L, and ₹4.25 Lakhs for income above ₹20L).
It is a flat deduction subtracted from salary income before tax calculations. Under Budget 2024, this was set to ₹75,000 for the New Regime and ₹50,000 for the Old Regime.
Yes. Salaried individuals can select their preferred tax regime (Old vs New) every financial year when filing their Income Tax Returns (ITR) under Section 139(1).
Section 87A rebate wipes out tax liability if your taxable income (after deductions) does not exceed ₹7,00,000 in the New Regime (making income up to ₹7.75L tax-free after standard deduction) or ₹5,00,000 in the Old Regime.
No. HRA exemptions, along with LTA and Section 80C deductions, are not allowed under the New Tax Regime. They can only be claimed in the Old Tax Regime.
No. Interest paid on a self-occupied home loan up to ₹2,00,000 per year can be claimed as a deduction under Section 24(b) only under the Old Tax Regime. It is not allowed under the New Regime.
The New Regime allows very few deductions. The primary ones are the Standard Deduction of ₹75,000, employer's contribution to NPS under Section 80CCD(2), and deductions for family pension under Section 57(iia).