Income Tax Calculator
Compare the Old and New Tax Regimes (FY 2024-25) to determine the most tax-efficient option for your salary.
Standard deduction of ₹50k is auto-applied to both regimes.
Tax Comparison
Old vs New Tax Regime: Which is Better?
The Indian Government offers two income tax regimes. The Old Tax Regime allows you to claim over 70 exemptions and deductions (like 80C, 80D, HRA, home loan interest) to lower your taxable income. The New Tax Regime offers lower tax slab rates but does not allow most of these deductions, making it simpler but potentially more costly if you have significant investments.
How Does the Calculator Work?
This calculator uses the tax slabs for FY 2024-25 (AY 2025-26). A standard deduction of ₹50,000 is automatically subtracted from your gross income for both regimes. A 4% Health and Education Cess is added to the final calculated tax. It also accounts for Section 87A rebate (zero tax up to ₹5L in the old regime, and up to ₹7L in the new regime).
About the Data & Deductions
Deductions entered should include your investments under section 80C (EPF, PPF, ELSS, LIC, up to ₹1.5L), 80D (health insurance), House Rent Allowance (HRA) exemption, LTA, and interest on home loans. If your total deductions are low, the New Regime usually results in higher savings.
Frequently Asked Questions
Have questions about this tool? Find quick answers here.
- The Old Tax Regime allows you to claim over 70 exemptions and deductions (like Section 80C, HRA, LTA, etc.) to lower your taxable income. The New Tax Regime offers lower tax rates but does not allow most of these deductions, except for the standard deduction of ₹50,000 (introduced for the New Regime from FY 2023-24 onwards).
- It depends on your deductions. If you have significant investments under 80C, pay high rent (HRA), or have a home loan interest deduction, the Old Regime might be better. If you have few investments and deductions, the New Regime usually results in lower taxes.
- Salaried individuals can choose between the old and new regime every year. However, individuals with business or professional income can switch to the new regime, but they only have a once-in-a-lifetime opportunity to switch back to the old regime.
- Yes, from the Financial Year 2023-24 (Assessment Year 2024-25), the standard deduction of ₹50,000 is available under both the Old and the New Tax Regimes for salaried individuals.
Educational Purposes Only
The calculations provided by this tool are for educational and informational purposes only and do not constitute financial, investment, or tax advice. Actual rates, terms, and outcomes may vary based on your financial institution and market conditions. Please consult with a qualified financial advisor before making any major financial decisions.
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