Income Tax Calculator

Income Tax Calculator India – Old vs New Regime Comparison

Choosing between the Old and New income tax regimes in India can significantly impact your annual tax liability. This Income Tax Calculator helps you compare both regimes instantly and determine which option saves you more money.

With changing tax slabs, standard deductions, and rebate provisions under Section 87A, understanding your actual tax outgo has become essential for salaried employees, professionals, and business owners.

What Is the Old Tax Regime?

The Old Regime allows taxpayers to claim multiple deductions and exemptions such as Section 80C investments, 80D health insurance, HRA exemption, and home loan interest under Section 24.

It benefits individuals who actively invest and claim deductions.

What Is the New Tax Regime?

The New Regime offers lower slab rates but restricts most exemptions and deductions. It simplifies tax calculation and is suitable for individuals who do not claim major deductions.

Which Tax Regime Is Better?

The better regime depends on your income level and eligible deductions. If you claim high deductions under 80C, 80D, HRA, or home loan interest, the Old Regime may be beneficial. If you do not invest heavily in tax-saving instruments, the New Regime might result in lower tax.

How This Calculator Helps

• Calculates taxable income
• Applies correct slab rates
• Includes 4% health & education cess
• Applies 87A rebate rules
• Compares total tax under both regimes
• Recommends better regime

Section 87A Rebate Explained

Under the new regime, taxpayers with taxable income up to ₹7 lakh can get full tax rebate. Under the old regime, rebate applies up to ₹5 lakh.

Why You Should Compare Both Regimes

Many taxpayers choose regime without comparison and end up paying higher tax. This calculator ensures data-driven tax planning.

Conclusion

Before filing your income tax return, always compare both tax regimes using this calculator. Smart planning can save thousands or even lakhs annually.