Income Tax Calculator

Compare the Old Vs New Tax Regime and minimize your tax payout based on the latest Indian Government slabs.

Gross Annual SalaryRs. 12,00,000
Sec 80C Deductions (PPF, ELSS, etc)Rs. 1,50,000
Applicable only in the Old Tax Regime.
Other Deductions (HRA, 80D, etc)Rs. 50,000
Applicable only in the Old Tax Regime. Standard Deduction of 50k is Auto-Applied in both.

AI Recommendation

You should opt for the New Regime. You will save exactly Rs. 20,800 by choosing the New Regime.

Regime Breakdown

Old Tax RegimeRs. 1,06,600
↳ Taxable IncomeRs. 9,50,000
New Tax RegimeRs. 85,800
↳ Taxable IncomeRs. 11,50,000

How the Indian Income Tax System Works

The Income Tax Department of India allows taxpayers to choose between two distinct tax systems: the Old Tax Regime and the New Tax Regime. Our dual-engine calculator runs your income through both simultaneously, factoring in Section 87A rebates and standard deductions.

New Tax Regime

Lower tax rates but mandates foregoing most traditional exemptions and deductions (like 80C, 80D, HRA, and LTA). Standard deduction of Rs. 50,000 is now available.

Old Tax Regime

Higher tax rates but allows numerous tax-saving deductions. If you have significant investments in PPF, ELSS, Life Insurance (Section 80C), Mediclaim (Section 80D), the Old Regime might still be more beneficial.

Disclaimer:Calculations are estimates based on the latest Indian financial budget proposals. Always consult a certified Chartered Accountant (CA) before filing your ITR.

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Frequently Asked Questions — Income Tax Calculator

What is the difference between Old and New Tax Regime?

The Old Tax Regime has higher tax rates but allows numerous deductions (80C, 80D, HRA, LTA). The New Tax Regime offers lower tax rates but eliminates most deductions and exemptions. The choice depends on your total deductions.

What is Section 87A rebate?

Section 87A provides a tax rebate for resident individuals. Under the New Tax Regime, if your taxable income is up to Rs. 7 lakhs, you get a full tax rebate (zero tax). Under the Old Regime, the rebate applies up to Rs. 5 lakhs.

Is the New Tax Regime better for everyone?

Not necessarily. If your total deductions (80C + 80D + HRA + LTA etc.) exceed Rs. 3-4 lakhs per year, the Old Tax Regime may result in lower tax. Our calculator helps you compare both regimes instantly.

What is Standard Deduction?

Standard Deduction is a flat Rs. 50,000 deduction available to all salaried employees under both Old and New Tax Regimes. It was introduced to replace the earlier transport allowance and medical reimbursement.