Income Tax Calculator for New Tax Regime & Old Tax Regime
Easily compare your tax liabilities with our New Tax Regime vs Old Tax Regime calculators. Enter your income details, deductions, and exemptions to see which tax regime offers the best savings for you. Our intuitive calculators provide a clear comparison, helping you make informed decisions about your tax planning and optimize your financial strategy.
Understanding the Income Tax Calculator for Old & New Regimes
An Income Tax Calculator helps you estimate your tax liability under both the old and new tax regimes, allowing you to make an informed decision on which regime to opt for. Here’s how you can use an Income Tax Calculator and the formulas involved for both regimes.
Components of Income Tax Calculator
To calculate your income tax, you need:
- Gross Total Income: The total income from all sources, including salary, house property, capital gains, business income, and other sources.
- Deductions: Applicable deductions under various sections (old regime).
- Taxable Income: Gross Total Income minus deductions.
- Tax Slabs and Rates: The applicable tax rates based on your taxable income.
- Rebate (Section 87A): Applicable if total income is below a certain threshold.
- Health & Education Cess: A cess of 4% on the total tax payable.
Income Tax Calculation Under the Old Regime
Key Deductions Available in the Old Regime
- Section 80C: Deductions for investments in PPF, EPF, LIC premiums, NSC, etc., up to ₹1.5 lakh.
- Section 80D: Deductions for medical insurance premiums.
- Section 24(b): Interest on home loan deductions.
- Standard Deduction: ₹50,000 for salaried individuals.
To know more about various deductions & exemptions under Old Tax Regime check out our article on New Tax Regime vs Old Tax Regime.
Formula for Income Tax Calculation (Old Regime)
- Calculate Gross Total Income.
- Subtract deductions under various sections.
- Apply the tax rates on the net taxable income based on the slabs.
- Apply rebate under Section 87A if applicable.
- Add health & education cess of 4%.
Taxable Income = Gross Total Income−Deductions
Total Tax Payable = (Tax on Taxable Income−Rebate under Section 87A)×1.04
Old Regime Tax Slabs (for FY 2024-25)
| Income Range | Tax Rate |
|---|---|
| Income up to ₹2,50,000 | Nil |
| ₹2,50,001 to ₹5,00,000 | 5% |
| ₹5,00,001 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Income Tax Calculation Under the New Regime
Key Features of the New Regime
- Lower Tax Rates: Simplified and lower tax rates.
- No Exemptions and Deductions: Most exemptions and deductions are not available.
To know more about various deductions & exemptions under New Tax Regime check out our article on New Tax Regime Exemption list.
Formula for Income Tax Calculation (New Regime)
- Calculate Gross Total Income.
- Subtract the standard deduction of ₹50,000 (if applicable).
- Apply the tax rates on the net taxable income based on the slabs.
- Apply rebate under Section 87A if applicable.
- Add health & education cess of 4%.
Taxable Income = Gross Total Income−Deductions
Total Tax Payable = (Tax on Taxable Income−Rebate under Section 87A)×1.04
New Regime Tax Slabs (for FY 2024-25)
| Income Range | Tax Rate |
|---|---|
| Income up to ₹3,00,000 | Nil |
| ₹3,00,001 to ₹6,00,000 | 5% |
| ₹6,00,001 to ₹9,00,000 | 10% |
| ₹9,00,001 to ₹12,00,000 | 15% |
| ₹12,00,001 to ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Example Calculation
Let’s take an example to understand the difference between the old and new regimes.
Scenario: Individual with ₹12 Lakhs Annual Income
Old Regime:
- Gross Total Income: ₹12,00,000
- Deductions:
- Section 80C: ₹1,50,000
- Section 80D: ₹25,000
- Standard Deduction: ₹50,000
- Net Taxable Income: ₹12,00,000 – ₹1,50,000 – ₹25,000 – ₹50,000 = ₹9,75,000
- Tax Calculation:
- Up to ₹2,50,000: Nil
- ₹2,50,001 to ₹5,00,000: 5% of ₹2,50,000 = ₹12,500
- ₹5,00,001 to ₹10,00,000: 20% of ₹4,75,000 = ₹95,000
- Total Tax Before Rebate and Cess: ₹12,500 + ₹95,000 = ₹1,07,500
- Health & Education Cess (4%): ₹1,07,500 x 0.04 = ₹4,300
- Total Tax Payable: ₹1,07,500 + ₹4,300 = ₹1,11,800
New Regime:
- Gross Total Income: ₹12,00,000
- Deductions: ₹50,000 (Standard Deduction)
- Net Taxable Income: ₹12,00,000 – ₹50,000 = ₹11,50,000
- Tax Calculation:
- Up to ₹3,00,000: Nil
- ₹3,00,001 to ₹6,00,000: 5% of ₹3,00,000 = ₹15,000
- ₹6,00,001 to ₹9,00,000: 10% of ₹3,00,000 = ₹30,000
- ₹9,00,001 to ₹12,00,000: 15% of ₹2,50,000 = ₹37,500
- Total Tax Before Rebate and Cess: ₹15,000 + ₹30,000 + ₹37,500 = ₹82,500
- Health & Education Cess (4%): ₹82,500 x 0.04 = ₹3,300
- Total Tax Payable: ₹82,500 + ₹3,300 = ₹85,800
Comparison Table
| Component | Old Regime | New Regime |
|---|---|---|
| Gross Total Income | ₹12,00,000 | ₹12,00,000 |
| Deductions | ₹2,25,000 (80C, 80D, Standard) | ₹50,000 (Standard) |
| Net Taxable Income | ₹9,75,000 | ₹11,50,000 |
| Tax Calculation | ₹1,07,500 | ₹82,500 |
| Health & Education Cess (4%) | ₹4,300 | ₹3,300 |
| Total Tax Payable | ₹1,11,800 | ₹85,800 |
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