📊 What is the Old vs New Tax Regime Calculator and How Does It Work?
The new regime offers lower slab rates but removes most deductions. The old regime allows 80C, 80D, HRA, and other deductions. This calculator computes tax under both, shows the exact difference, and recommends the better option for your income profile.
FormulaOld: Slab tax on (Income – deductions – ₹50K standard) | New: Slab tax on (Income – ₹50K standard) ± 87A rebate
🪓 Step-by-Step: How to Use This Calculator
- Enter total annual income from all sources
- Enter eligible deductions: 80C, 80D, HRA, LTA, home loan interest
- Click Calculate to see tax under both regimes and the recommended choice
📌 Example Calculation
₹12L income, full 80C ₹1.5L + 80D ₹25K: Old regime tax ~₹1,24,500 vs New regime ~₹1,33,000. Old regime saves ₹8,500 here.
✅ Benefits of Using This Calculator
- Instant comparison without complex manual calculation
- Know definitively which regime saves more for your numbers
- Plan tax-saving investments accordingly
- Understand the exact crossover income point
- Switch regimes on time each financial year
- Legally optimise your total annual tax outgo
⚙️ Key Factors That Affect Results
- Gross total income from all sources
- Total available deductions (80C, 80D, HRA, LTA, home loan)
- Standard deduction ₹50,000 (both regimes)
- Section 87A rebate applicability
- Age category and income level
- Employment type — salaried vs business income
❓ Frequently Asked Questions
Which regime is better for me?▼
New regime suits those with few deductions. Old regime benefits those maximising 80C (₹1.5L), 80D, and HRA. Use this calculator to compare for your exact numbers.
What is Section 87A rebate?▼
Under the new regime, income up to ₹7 lakh has zero tax due to this rebate. A major advantage for those in the ₹5–7 lakh income range.
What deductions work under the new regime?▼
Only standard deduction (₹50K), employer NPS contribution (80CCD(2)), and a few others. Most popular deductions including 80C and 80D are unavailable.
Is the new regime compulsory from 2024?▼
No — it is the default. You must explicitly choose old regime by filing Form 10-IEA or declaring to your employer before the deadline.
Can I switch between regimes every year?▼
Salaried employees can switch annually. Business owners who opt out of new regime can only switch back to old regime once in their lifetime.