Income Tax Calculator India

Compare your tax liability under the New Tax Regime vs Old Tax Regime for FY 2024-25. See which saves you more tax instantly.

₹

Old Regime

Taxable Income
₹9,50,000
Tax
₹1,02,500
Cess (4%)
₹4,100
Total Tax Payable
₹1,06,600
Effective Rate: 10.66%
Better

New Regime

Taxable Income
₹9,25,000
Tax
₹42,500
Cess (4%)
₹1,700
Total Tax Payable
₹44,200
Effective Rate: 4.42%

You save ₹62,400 with the New Regime

Understanding Indian Income Tax Regimes

India offers two income tax regimes for individual taxpayers. The Old Tax Regime has been the traditional system with higher tax rates but allows numerous deductions and exemptions (Section 80C, 80D, HRA, LTA, home loan interest, etc.).

The New Tax Regime, introduced in Budget 2020 and made the default from FY 2023-24, offers lower tax rates across more slabs but disallows most deductions and exemptions. The 2024 Budget increased the standard deduction under the new regime to ₹75,000.

Choosing the right regime depends on your total deductions. If your deductions are minimal, the new regime typically results in lower tax. If you claim significant deductions (above ₹3-4 lakh), the old regime may be more beneficial. This calculator compares both to help you decide.

Income Tax Slab Rates (FY 2024-25)

New Tax Regime (Default)

Up to ₹3,00,000 → Nil
₹3,00,001 – ₹7,00,000 → 5%
₹7,00,001 – ₹10,00,000 → 10%
₹10,00,001 – ₹12,00,000 → 15%
₹12,00,001 – ₹15,00,000 → 20%
Above ₹15,00,000 → 30%
Standard Deduction: ₹75,000
Rebate u/s 87A: No tax if taxable income ≤ ₹7,00,000

Old Tax Regime

Up to ₹2,50,000 → Nil
₹2,50,001 – ₹5,00,000 → 5%
₹5,00,001 – ₹10,00,000 → 20%
Above ₹10,00,000 → 30%
Standard Deduction: ₹50,000
Rebate u/s 87A: No tax if taxable income ≤ ₹5,00,000

Health & Education Cess: 4% is added to the computed tax in both regimes.

Example: Tax Comparison for ₹12,00,000 Income

Gross Annual Income: ₹12,00,000

New Regime Calculation

Taxable = ₹12,00,000 − ₹75,000 = ₹11,25,000
Tax = 0 + ₹20,000 + ₹30,000 + ₹18,750 = ₹68,750
Cess = ₹68,750 × 4% = ₹2,750
Total = ₹71,500

Old Regime Calculation (No Deductions)

Taxable = ₹12,00,000 − ₹50,000 = ₹11,50,000
Tax = 0 + ₹12,500 + ₹1,00,000 + ₹45,000 = ₹1,57,500
Cess = ₹1,57,500 × 4% = ₹6,300
Total = ₹1,63,800

Without additional deductions, the New Regime saves ₹92,300 for a ₹12 lakh income. However, if you claim ₹3,00,000+ in deductions under the old regime, the gap narrows significantly.

People Also Ask

What is the difference between the Old and New Tax Regime in India?
The Old Regime allows deductions under Section 80C, 80D, HRA, etc., but has fewer tax slabs. The New Regime (from Budget 2023-24) offers lower tax rates across more slabs but disallows most deductions. The calculator compares both to show which saves you more tax.
Who should choose the New Tax Regime?
The New Tax Regime is typically better for taxpayers with fewer deductions and exemptions — for example, salaried individuals who don't claim HRA, Section 80C, or home loan interest. If your total deductions exceed ₹3-4 lakh, the Old Regime may be more beneficial.
What is Health and Education Cess?
A 4% cess is levied on top of your computed income tax (including surcharge, if applicable). This means your total tax payable = Tax on income + 4% cess. The cess funds healthcare and education initiatives across India.