India Income Tax Calculator
Compare old and new tax regimes for FY 2025-26. Enter your salary and deductions to see which regime saves you more with a detailed side-by-side breakdown.
Income Details
Deductions (Old Regime)
Comparison
Better Option
New Regime
Save ₹1,01,400
New Regime
Old Regime
Disclaimer
This calculator provides estimates based on FY 2025-26 tax slabs. Actual tax liability may vary based on additional income sources, capital gains, and individual circumstances. Consult a tax professional for personalized advice.
Old Regime vs New Regime
India has two parallel tax regimes since 2020 - taxpayers choose which to use each year. Old regime: brackets at 0/5/10/15/20/30% with full deductions (80C ₹1.5 lakh, HRA, LTA, standard deduction ₹50k, home loan interest, mediclaim, etc). New regime: lower rates with fewer deductions allowed. The 2024 Budget made new regime the default and revised brackets.
New regime 2024-25 brackets: 0 to ₹3 lakh: 0%, ₹3-7 lakh: 5%, ₹7-10 lakh: 10%, ₹10-12 lakh: 15%, ₹12-15 lakh: 20%, above ₹15 lakh: 30%. Standard deduction ₹75,000. Section 87A rebate makes income up to ₹7 lakh effectively tax-free. Old regime brackets unchanged - 5% from ₹2.5L, 20% from ₹5L, 30% from ₹10L.
Which Regime to Pick
New regime usually wins for younger employees with limited deductions, especially under ₹15 lakh income. Old regime usually wins for those maximising 80C+80D+HRA (often over ₹3-4 lakh of total deductions) at higher income brackets. The break-even depends heavily on individual deductions claimed.
Calculate both ways each year before filing. The choice can be made annually for salaried employees (employer asks at start of year, can be revised before filing). Self-employed and business owners can switch only every alternate year between regimes. Most online tax calculators run both scenarios and recommend the lower-tax option.
Common Deductions Under Old Regime
Section 80C (₹1.5 lakh max): EPF, PPF, ELSS, life insurance premiums, principal repayment on home loan, NPS Tier 1 (also separate ₹50k under 80CCD(1B)). 80D for medical insurance: ₹25k self/family, ₹50k for parents over 60. HRA based on rent paid and basic salary. Section 24 deduction of home loan interest up to ₹2 lakh.
LTA (Leave Travel Allowance) for travel within India twice in 4 years. NPS additional deduction beyond 80C up to ₹50k. Section 80E for education loan interest (no upper limit). Standard deduction ₹50k for old regime, ₹75k for new regime. Total deductions under old regime can exceed ₹4-5 lakh for someone using all available.
Surcharge and Cess
On top of base tax, surcharge applies at higher incomes: 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore (max under new regime), 37% above ₹5 crore (old regime only). Health and Education Cess at 4% applies on top of tax + surcharge. The cess covers government health and education programs.
For ₹1.5 crore total income under new regime: tax around ₹40 lakh, surcharge 15% = ₹6 lakh, cess 4% on ₹46L = ₹1.84 lakh. Total ₹47.84 lakh, effective rate around 32%. Old regime caps surcharge at 37% (was up to 42.7% pre-2023), making new regime preferred for ultra-high earners. Use the [India HRA Calculator](/india-hra-calculator) for old-regime HRA optimisation.
Frequently Asked Questions
When is the tax filing deadline?
Usually 31 July of the assessment year (so July 2024 for FY 2023-24). Late filing allowed up to 31 December with ₹1,000-5,000 penalty for income above ₹5 lakh. After 31 December, original return cannot be filed at all - only revised returns if a return was previously filed.
What is TDS and TCS?
TDS (Tax Deducted at Source): tax withheld by employer, banks, tenants, etc. on payments above thresholds. Salary TDS is calculated based on regime choice and projected annual income. TCS (Tax Collected at Source): collected on sale of certain goods, foreign remittances. Both are advance tax payments that you reconcile against final tax liability at filing.
How does PAN affect this?
PAN (Permanent Account Number) is required for all financial transactions above thresholds and for filing tax returns. Linking PAN with Aadhaar is mandatory - unlinked PANs become inoperative. TDS is deducted at higher rates if PAN isn't provided to the deductor.
Are NRIs taxed differently?
Yes - NRIs are taxed only on India-sourced income (rent, capital gains, dividends from Indian companies, business income). Resident status determines based on physical presence: 182+ days in India makes you resident; less makes you NRI. Different rules and TDS rates apply for NRI bank accounts (NRO/NRE).
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