Old vs New Tax Regime Calculator – Compare & Choose
Old vs New Tax Regime Calculator helps you compare your tax liability under both regimes. Just enter your income, deductions, and exemptions to see which option offers better savings. It provides a side-by-side breakdown of tax payable, helping you make an informed choice. This tool is essential for taxpayers navigating the new system introduced by the government.
Using the calculator, you can evaluate how standard deductions, HRA, and other exemptions impact your overall tax. It’s especially useful for salaried employees and professionals who want to maximize their take-home pay. The tool is simple, accurate, and updated with the latest tax rules. Use it to choose the regime that aligns best with your financial strategy.
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Regime Comparison
Old Regime — Slab Breakdown
| Slab | Taxable | Rate | Tax |
|---|---|---|---|
| Subtotal | — | ||
| Surcharge | — | ||
| Cess | — | ||
| Total | — | ||
New Regime — Slab Breakdown
| Slab | Taxable | Rate | Tax |
|---|---|---|---|
| Subtotal | — | ||
| Surcharge | — | ||
| Cess | — | ||
| Total | — | ||
Old Regime — Monthly TDS Schedule
| # | Month | TDS | Cumulative | Net Monthly |
|---|
New Regime — Monthly TDS Schedule
| # | Month | TDS | Cumulative | Net Monthly |
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Frequency Asked Questions About Old vs New Tax Regime Calculator
Old vs New Tax Regime: Overview
India offers two income tax regimes: the Old Regime and the New Regime. The Old Regime allows multiple deductions and exemptions, while the New Regime offers lower tax rates with minimal deductions. Choosing the right regime depends on your income structure, investments, and financial goals.
Key Differences Between Old and New Tax Regimes
Old Regime: - Higher tax rates - Allows deductions under Sections 80C, 80D, HRA, LTA, etc. - Suitable for taxpayers with significant investments and expenses New Regime: - Lower tax rates - No major deductions except standard deduction and employer NPS contribution - Simplified filing process
Old Tax Regime: Benefits and Drawbacks
Benefits: - Claim multiple deductions and exemptions - Encourages disciplined investing - Suitable for salaried individuals with HRA, home loans, insurance Drawbacks: - Complex documentation - Requires proof submission - Higher tax rates if deductions are not maximized
New Tax Regime: Benefits and Drawbacks
Benefits: - Lower slab rates - Simplified filing with fewer documents - Standard deduction of ?75,000 for salaried individuals Drawbacks: - Most deductions removed - May result in higher tax if you have eligible expenses - No HRA, 80C, or home loan interest benefits
Income Tax Slabs Comparison (FY 2025-26)
Old Regime: - ?0–?2.5L: Nil - ?2.5L–?5L: 5% - ?5L–?10L: 20% - ?10L+: 30% New Regime: - ?0–?4L: Nil - ?4L–?8L: 5% - ?8L–?12L: 10% - ?12L–?16L: 15% - ?16L–?20L: 20% - ?20L–?24L: 25% - ?24L+: 30%
Who Should Choose the Old Regime?
Opt for the Old Regime if: - You claim deductions over ?3L (HRA, 80C, 80D, home loan interest) - Your salary structure includes allowances and reimbursements - You prefer goal-linked tax-saving investments
Who Should Choose the New Regime?
Opt for the New Regime if: - You have minimal deductions - Prefer simplicity and fewer compliance requirements - Your income is straightforward without HRA or home loan benefits
Switching Between Regimes
Salaried individuals can switch regimes every financial year while filing ITR. Business owners can switch only once. Use a tax calculator to compare both regimes before filing.
Tax Planning Tips Based on Regime
Old Regime: - Maximize 80C with ELSS, PPF, LIC - Claim HRA and home loan interest - Use 80D for health insurance New Regime: - Focus on net income and avoid unnecessary tax-saving products - Invest based on goals, not deductions
Example: Old vs New Regime Comparison
Example: If your income is ?12L and you claim ?3L in deductions, your tax under Old Regime may be ?1.12L. Under New Regime, with no deductions, tax may be ?1.35L. The calculator helps you choose the better option instantly.