Income Tax Calculator
Compare Old vs New tax regimes and calculate your total tax liability for the year.
Income Tax: Old vs New Regime
Indian income tax offers two parallel regimes. The Old Regime allows deductions like 80C, HRA, and home loan interest but uses higher slab rates. The New Regime uses lower slabs and a ₹75,000 standard deduction for salaried taxpayers but disallows most exemptions.
How to use this calculator
Enter gross annual income from salary, business, or both. For Old Regime testing, add 80C investments, 80D health insurance, HRA exemption, and home loan interest under Section 24(b) only if you actually claim them.
Run the comparison twice: once with zero deductions and once with your real tax-saving plan. Many renters with full 80C and HRA still win on Old Regime, while young earners with minimal investments often do better on New Regime.
Check Section 87A rebate thresholds. Remember advance tax if liability after TDS exceeds ₹10,000. Declare your chosen regime to the employer in Form 12BB so monthly TDS matches year-end liability.
Surcharge and cess apply at higher incomes and can change the regime crossover point. Run the calculator again if your income includes capital gains or rental income taxed at slab rates.
Quick regime comparison
New Regime (FY 2025-26): revised slabs, ₹75,000 standard deduction for salary, ₹12 lakh rebate under section 87A, no 80C/HRA. Old Regime: higher slabs but 80C up to ₹1.5 lakh, 80D, HRA, home loan interest, and other Chapter VI-A deductions. Example: ₹12 lakh salary, ₹1.5 lakh 80C, ₹2 lakh HRA benefit, ₹1.5 lakh home loan interest. Old Regime taxable income drops sharply. Same person with no deductions often pays less under New Regime. There is no universal winner. The calculator shows tax under both side by side.
Frequently Asked Questions
Can I switch regimes every year?
Salaried individuals can pick Old or New each year when filing ITR. Business income taxpayers can switch back to Old Regime only once in a lifetime.
What is Section 87A rebate?
It can zero out tax for lower taxable incomes. Thresholds differ by regime and are updated in each budget.
Are ELSS and PPF allowed in New Regime?
No. Section 80C deductions including ELSS, PPF, and life insurance premiums are disallowed under New Regime.
When is advance tax due?
Pay in four instalments by June 15, September 15, December 15, and March 15 if tax after TDS exceeds ₹10,000 in the year.
Does employer TDS follow my regime choice?
Yes if you declare in Form 12BB at the start of the year. Wrong declaration leads to refund or extra tax at filing time.
Is NPS 80CCD(1B) available in New Regime?
The extra ₹50,000 deduction under 80CCD(1B) for NPS Tier I is generally available only in Old Regime. Confirm current law before planning.
Which regime for home loan borrowers?
Old Regime often wins when Section 24(b) interest and 80C principal repayments are large. Run both scenarios with your actual numbers.
Standard deduction in Old Regime?
Salaried taxpayers get standard deduction in both regimes from recent budgets, but Old Regime still allows Chapter VI-A deductions on top.
Rebate vs deduction?
Section 87A rebate reduces tax payable directly, while deductions like 80C reduce taxable income first. Both affect final liability differently.
Related guides
Need a quick number check?
Explore free calculators for tax, EMI, SIP, PF, and more. No signup required.
Want help filing your return?
ClearTax can review forms and file when AIS mismatches or multiple Form 16s get messy.