The one question this calculator answers
Since the new regime became the default, almost every salaried taxpayer faces the same decision: take the lower rates with almost no deductions, or the higher rates with the deductions you have been claiming for years.
There is no general answer. It depends entirely on how much you actually claim. The calculator computes both and shows the difference, which is the only reliable way to decide.
How the two regimes differ
The new regime has wider slabs and lower rates, a standard deduction of ₹75,000 for salaried taxpayers, and a section 87A rebate that makes a taxable income up to ₹12 lakh tax-free. It disallows almost everything else — no 80C, no 80D, no HRA exemption, no deduction for interest on a self-occupied home loan.
The old regime has a lower basic exemption and higher rates, a standard deduction of ₹50,000, and an 87A rebate that only reaches a taxable income of ₹5 lakh. In exchange it permits the full set of deductions: 80C, 80CCD(1B), 80D, 80G, 80E, 80TTA/TTB, the HRA exemption and home loan interest.
Age matters only in the old regime, where the basic exemption rises to ₹3 lakh at 60 and ₹5 lakh at 80. The new regime applies the same slabs to everyone.
The new regime slabs
- Up to ₹4,00,000 — nil
- ₹4,00,001 to ₹8,00,000 — 5%
- ₹8,00,001 to ₹12,00,000 — 10%
- ₹12,00,001 to ₹16,00,000 — 15%
- ₹16,00,001 to ₹20,00,000 — 20%
- ₹20,00,001 to ₹24,00,000 — 25%
- Above ₹24,00,000 — 30%
Health and education cess of 4% applies on top of the tax, under both regimes.
The ₹12 lakh point, and the relief just past it
A taxable income of exactly ₹12 lakh attracts no tax under the new regime, because the 87A rebate covers it. With the ₹75,000 standard deduction, that corresponds to a gross salary of ₹12.75 lakh.
Without a further rule, earning ₹1 more would trigger tax of about ₹61,500 — a cliff that costs far more than the extra income. Marginal relief prevents this: just above the limit, the tax payable cannot exceed the amount by which income exceeds ₹12 lakh. Earn ₹12.10 lakh and you pay roughly ₹10,000, not ₹61,500. This calculator applies marginal relief, including on the surcharge thresholds.
Where the old regime still wins
Broadly, when your deductions are large and real. Add up what you genuinely claim:
- Section 80C — up to ₹1.5 lakh across EPF, PPF, ELSS, life insurance premiums, home loan principal and tuition fees
- Section 80CCD(1B) — up to ₹50,000 of NPS contributions, over and above 80C
- Section 80D — health insurance premiums for yourself and your parents
- HRA exemption — often the largest single item for a salaried person renting in a metro
- Section 24(b) — up to ₹2 lakh of interest on a self-occupied home loan
Someone with a home loan, a full 80C, health insurance and substantial HRA can be claiming well over ₹5 lakh, and the old regime will usually cost less. Someone who rents nothing, has no loan and invests outside 80C will almost always pay less under the new one.
The calculator does this comparison properly. Fill in what you actually claim rather than what you could claim in principle.
How the HRA exemption is worked out
The exemption is the least of three figures:
- The actual HRA received
- Rent paid minus 10% of basic salary plus DA
- 50% of basic plus DA in a metro, or 40% elsewhere
Delhi, Mumbai, Kolkata and Chennai count as metros for this purpose. The exemption exists only under the old regime.
How to use this calculator
- Pick the assessment year and your age category.
- Fill in your income — gross salary, other income, interest, rental income from a let-out property and any home loan interest.
- Fill in the deductions you actually claim. The calculator applies the statutory caps, so entering ₹3 lakh under 80C will be limited to ₹1.5 lakh.
- Fill in the HRA block if you rent.
- Press Calculate.
The result shows the tax under each regime side by side, which is cheaper and by how much, plus the slab-wise working for the cheaper one.
What it does not cover
This is an estimator for a resident individual with salary, house property and other income. It does not model capital gains, business or professional income, foreign income, clubbing provisions, carried-forward losses, or the qualifying limits that restrict section 80G donations to 50% or 100% depending on the institution. For any of those, your return is a more complicated document than this page can represent.