Income Tax Calculator: Compare Tax Regimes and Compute Your Tax Liability

Every year, millions of Indians either overpay their taxes or miss deductions they could have claimed. Both cost money. The solution is simple: compute your tax accurately before the year ends.

India now offers two tax regimes. The old regime lets you claim deductions like 80C, 80D, and HRA. The new regime offers lower rates but removes most deductions. The right choice depends on your numbers.

This calculator lets you compute your tax under both regimes and compare the results side by side.

Tax Calculator

Income Tax Calculator

Assessment Year Tax Computation
₹
Salary, bonus, allowances & all other earnings
Determines basic exemption slab
Exemptions & Section Deductions Old Regime Exclusive
Taxable Income
₹8,02,500
After Deductions
Total Tax (Inc. Cess)
₹75,920
With 4% Cess
Base Tax
₹73,000
Surcharge: ₹0
Approx. Monthly TDS
₹6,327
Per Month Salary Deduction

How to Use the Income Tax Calculator

Review the step-by-step methodology for computing taxes under both regimes.

Computing Tax Under the Old Tax Regime

Enter your gross income including salary, bonuses, and other sources. Enter your HRA exemption, Section 10A exemptions, and professional tax. Then enter deductions: Section 80C (up to Rs 1.5 lakh), Section 80D for health insurance, Section 80CCD for NPS, and Section 24 for home loan interest. You can also protect your dependents with term insurance while maximizing your 80C envelope. The calculator computes your tax with surcharge and 4% cess.

Computing Tax Under the New Tax Regime

Enter your gross income. The calculator applies the standard deduction and computes your tax under the new slab rates. Fewer fields to fill since most deductions are not available. It offers a seamless, hassle-free filing experience with lower marginal tax brackets across middle-income ranges.

Old Regime vs New Regime Tax Slabs

Compare the marginal tax rates applicable across income slabs under the Indian tax system.

Income Slab Old Regime Rate New Regime Rate
Up to Rs 2.5 lakh Nil Nil
Rs 2.5 to 3 lakh 5% Nil
Rs 3 to 5 lakh 5% 5%
Rs 5 to 6 lakh 20% 5%
Rs 6 to 9 lakh 20% 10%
Rs 9 to 10 lakh 20% 15%
Rs 10 to 12 lakh 30% 15%
Rs 12 to 15 lakh 30% 20%
Above Rs 15 lakh 30% 30%

Which Regime Is Better for You

If your total deductions exceed Rs 3 to 4 lakh, the old regime usually saves more. If you have few deductions, the new regime's lower rates may be better. Use this calculator to compare your actual numbers.

Explore our tax saving investment options to maximise your deductions under the old regime.

Excel India IMF

Over 5 Years of Experience

Financial and tax planning advisory across India

Why Choose Excel India IMF

Our IRDAI licensed advisors help you plan tax saving investments at the start of the year. We compare ELSS, insurance, NPS, and other options. Over 5 years of experience in financial planning ensures your hard-earned wealth is protected, optimized, and compliant with statutory provisions.

IRDAI-Licensed Advisors
Section 80C & 80D Portfolio Advisory
Old vs New Regime Audit
Year-Round Financial Guidance
Disclaimer: Tax rates change with each Finance Act. Verify with a tax professional before making decisions.

Frequently Asked Questions

Answers regarding regime selection, available deductions, surcharge slabs, and switching rules

Compare both using this calculator. If deductions exceed Rs 3 to 4 lakh, old regime is usually better.

80C (Rs 1.5 lakh for PPF, ELSS, insurance), 80D (Rs 25,000 health insurance, Rs 50,000 senior parents), 80CCD (Rs 50,000 NPS), Section 24 (Rs 2 lakh home loan interest), HRA, and standard deduction.

No. People with home loans, HRA, and significant 80C investments often pay less under the old regime.

Surcharge applies on income above Rs 50 lakh, ranging from 10% to 37% of tax. The calculator applies it automatically.

Salaried employees can choose each year. Self employed individuals who opt for the old regime may face restrictions on switching back.

Calculate Your Tax and Plan Ahead

Use the calculator above. For tax saving advice, call 90 90 92 15 15 or contact us. Also explore our retirement plans for additional NPS tax benefits under Section 80CCD.

Disclaimer: Tax rates change with each Finance Act. Verify with a tax professional before making decisions.

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