Compare your tax liability under old and new tax regimes. Enter your income and deductions to find which regime saves you more.
Old Regime Deductions
0% up to ₹3L; 5% ₹3–7L; 10% ₹7–10L; 15% ₹10–12L; 20% ₹12–15L; 30% above ₹15L. Rebate 87A: zero tax up to ₹7L.
0% up to ₹2.5L (₹3L senior, ₹5L super-senior); 5% ₹2.5–5L; 20% ₹5–10L; 30% above ₹10L. Rebate 87A: zero tax up to ₹5L.
If your total deductions (80C + HRA + 80D + home loan + NPS) exceed ₹3.75L, the old regime typically yields lower tax than new.
From FY 2023-24, the new regime is the default. You must explicitly opt out to use the old regime. Review annually before filing ITR.
India's income tax system was formally codified through the Income Tax Act of 1961, which replaced the earlier 1922 Act. Since then it has been amended dozens of times - most significantly in 2020 when the government introduced an optional new tax regime with lower slab rates but fewer deductions. For FY 2024-25, salaried individuals can choose between the old regime (with deductions under 80C, 80D, HRA and the Rs 50,000 standard deduction) and the new regime (default from FY 2023-24 onward, with a revised standard deduction of Rs 75,000). This calculator lets you compare both regimes side by side in seconds.
Salaried employees, self-employed professionals, and small business owners across India use an income tax calculator during investment-planning season (January to March) to decide how much to invest in ELSS, PPF, NSC or NPS under Section 80C. Government exam aspirants preparing for UPSC, SSC CGL and State PSC exams also rely on it to understand direct tax concepts, since questions on income tax slabs and deductions appear regularly in General Studies and Finance papers.
Under the new regime for FY 2024-25, income up to Rs 3 lakh is tax-free; the 5% slab applies from Rs 3-7 lakh; 10% from Rs 7-10 lakh; 15% from Rs 10-12 lakh; 20% from Rs 12-15 lakh; and 30% above Rs 15 lakh. A full rebate under Section 87A makes net tax zero for taxable income up to Rs 7 lakh in the new regime. Surcharge and 4% health and education cess are added on top of the basic tax for higher incomes. Understanding these layers helps you plan salary structure and avoid surprise TDS deductions.