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Income Tax Calculator
Compare tax liability under the Old and New tax regimes to see which one actually works out cheaper.
Income Tax calculator
Compare tax liability under the Old and New regimes to see which suits a client better.
What is an Income Tax?
India’s income tax system currently offers two regimes to choose from each financial year: the Old Regime, which allows a wide range of deductions and exemptions (like 80C, HRA, and home loan interest) in exchange for higher slab rates, and the New Regime, which offers lower slab rates but strips out most deductions. Which one results in lower tax depends entirely on how many deductions a person actually claims.
How is it calculated?
Why use this calculator
- Removes the guesswork from an annual decision that genuinely changes with each year's numbers
- Makes the deduction trade-off concrete instead of theoretical
- A useful, low-effort conversation starter at the start of every financial year
Who should use it
Every salaried taxpayer, every year: the better regime for one person, or even the same person in a different year, can easily be the worse one for another.
Frequently asked questions
Can I switch regimes every year?
Salaried individuals can generally choose either regime each financial year when filing returns. Those with business income face more restrictions on switching back and forth. Check current rules before assuming.
Which regime is better?
There’s no universal answer: it depends on how much a person can genuinely claim in deductions under the Old Regime. Someone with a home loan, 80C investments, and HRA might do better under the Old Regime; someone without those might do better under the New.
Does this calculator account for all deductions?
It covers the major, commonly-claimed ones. For a client with an unusually complex return, treat this as a starting estimate and involve a tax professional for the final filing.