Income Tax Calculator – Old vs New Regime

Compare tax regimes, calculate deductions (80C, 80D, HRA, home loan), visualize tax breakdown, and find your effective tax rate instantly.

Regime Comparison
Instant Results
Visual Breakdown
Tax Payable (Better Regime)
₹0

Tax Breakdown

Pie chart shows tax liability vs take-home for the better regime.

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Income & Deductions

Enter your total income and eligible deductions to compare old vs new tax regimes and optimize your tax liability.

₹12L
Total income before any deductions or exemptions (salary, business income, other sources).
₹1.5L
Maximum ₹1.5L per year. Includes EPF, PPF, life insurance, NSC, ELSS, tuition fees, home loan principal, etc.
₹25K
Health insurance for self/family (max ₹25K), plus parents (additional ₹25K, ₹50K if senior citizens).
₹1L
Exempted HRA is the minimum of: actual HRA, rent paid minus 10% of salary, or 50%/40% of salary (metro/non-metro).
₹2L
Deduction up to ₹2L for self-occupied property. Interest paid on home loan for construction/purchase.
Education loan interest (80E), donations (80G), NPS additional 50K (80CCD(1B)), etc.
Old Regime Tax
₹0
New Regime Tax
₹0
Old vs New Regime Comparison
Recommended: -
₹0
Gross Annual Income ₹0
Total Deductions ₹0
Taxable Income (Better) ₹0
Tax + Cess ₹0
Effective Tax Rate 0.00%
Take-Home Income ₹0

Smart Tax Tips

New regime offers lower rates but removes most deductions—compare both to optimize.
Maximize 80C (₹1.5L) with EPF, PPF, ELSS for long-term wealth and tax saving.
Health insurance (80D) saves tax and secures your family—don't skip it.
Home loan interest (₹2L) provides significant relief—claim it every year.
Keep all investment proofs and receipts for smooth ITR filing and audits.

Tax Breakdown

Visual breakdown of tax vs take-home income for the better regime.

How to Use Income Tax Calculator?

1

Select Currency

Choose INR, USD, or GBP from the header menu. Default is INR as this tool is primarily used in India.

2

Enter Gross Income

Input your total annual income from all sources (salary, business, investments, other income).

3

Add Deductions & Exemptions

Fill in eligible deductions: 80C, 80D, HRA, home loan interest, and other Chapter VI-A deductions.

4

Compare & Optimize

Review old vs new regime comparison, tax breakdown chart, effective rate, and take-home income. Choose the better regime.

Understanding Income Tax Calculation

What is Income Tax?

Income tax is a mandatory levy imposed by the government on individuals and entities earning income. In India, it is governed by the Income Tax Act, 1961. Tax rates vary by income slabs, and taxpayers can reduce liability through deductions and exemptions.

How is Income Tax Calculated?

Income tax is calculated in three steps: (1) Calculate Gross Total Income from all sources, (2) Subtract eligible deductions (80C, 80D, HRA, home loan interest, etc.) to arrive at Taxable Income, (3) Apply tax slabs to taxable income and add 4% Health & Education Cess.

Old vs New Tax Regime

Old Regime: Higher tax rates but allows multiple deductions (80C, 80D, HRA, home loan interest, etc.).
New Regime (Introduced FY 2020-21): Lower tax rates but removes most deductions and exemptions. Taxpayers can choose the regime that minimizes their tax liability.

Core Tax Slabs (FY 2023-24 Example - India)

Old Regime: ₹0-2.5L (0%), ₹2.5L-5L (5%), ₹5L-10L (20%), >₹10L (30%)
New Regime: ₹0-3L (0%), ₹3L-6L (5%), ₹6L-9L (10%), ₹9L-12L (15%), ₹12L-15L (20%), >₹15L (30%)
Note: Slabs may change annually. This calculator uses simplified 2023-24 slabs for demonstration. Always verify current slabs with official sources.

Factors Affecting Your Tax

Uses & Benefits

Regime Comparison

Compare old vs new tax regimes side-by-side and identify which saves you more money instantly.

Tax Planning

Plan investments and deductions at the start of the financial year to minimize tax liability legally.

Maximize Take-Home

Optimize deductions to keep more money in your pocket and increase disposable income.

ITR Filing Prep

Estimate tax liability before filing returns, avoid surprises, and ensure accurate ITR submission.

Who Should Use This?

Frequently Asked Questions

Which regime is better—old or new?
It depends on your deductions. If you have significant deductions (80C, HRA, home loan), old regime often saves more. If you have minimal deductions, new regime with lower rates may be better. Use this calculator to compare.
Can I switch between regimes every year?
Yes, salaried individuals can switch annually. However, business/professional income holders can switch only once. Check latest IT rules before filing.
What is the 4% cess on tax?
Health & Education Cess is 4% of calculated income tax. It funds government health and education programs. This calculator adds cess automatically.
Does this calculator include TDS or advance tax?
No. This estimates your total tax liability. TDS (Tax Deducted at Source) and advance tax are payment mechanisms. Consult a CA for detailed tax planning.
Are these tax slabs accurate for my country?
This calculator uses Indian tax slabs (FY 2023-24 example). Tax rules vary by country and change annually. For official slabs, consult your tax authority or chartered accountant.

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Trust & Important Notes

Privacy First

All calculations run locally in your browser—no data sent to servers.

Transparent Logic

Uses progressive slab calculation with cess—open and verifiable.

Input Validation

Guards against invalid inputs and formatting errors.

For Planning Only

Consult a CA for official ITR filing and tax compliance.

Disclaimer: This income tax calculator provides an estimate based on simplified Indian tax slab examples (FY 2023-24). Actual tax liability depends on official slabs (updated annually), applicable surcharges for high income, state-specific rules, age-based exemptions, detailed deduction limits, and compliance with IT Act. Tax laws are complex and subject to change. This tool is for informational and planning purposes only and does not constitute professional tax, legal, or financial advice. For accurate calculation, ITR filing, and compliance, consult a qualified Chartered Accountant or tax professional. Always verify deductions eligibility and documentation requirements with official sources.