Income Tax Calculator — New vs Old Regime
Enter your income once and see the tax, slab by slab, under both the new and old regimes — with a straight answer on which one saves you more.
Your gross salary is ₹15,00,000 (₹9,00,000 basic+DA + ₹3,60,000 HRA + ₹2,40,000 other). Under the old regime, paying ₹3,00,000/yr rent in a metro city makes ₹2,10,000 of your HRA tax-exempt (the remaining ₹1,50,000 is taxed as normal salary) — that's on top of ₹1,50,000 under 80C, ₹25,000 under 80D, and ₹0 in home loan interest. Even with all of that, the New regime still costs less here: ₹97,500 versus ₹1,37,280, a difference of ₹39,780/yr.
| New regime | Old regime | |
|---|---|---|
| Gross salary | ₹15,00,000 | ₹15,00,000 |
| Standard deduction | -₹75,000 | -₹50,000 |
| HRA exemption | not allowed | -₹2,10,000 |
| Section 80C | not allowed | -₹1,50,000 |
| Section 80D | not allowed | -₹25,000 |
| Home loan interest (24b) | not allowed | -₹0 |
| Other deductions | not allowed | -₹0 |
| Taxable income | ₹14,25,000 | ₹10,65,000 |
| Tax before cess | ₹93,750 | ₹1,32,000 |
| Section 87A rebate | -₹0 | -₹0 |
| Health & education cess (4%) | ₹3,750 | ₹5,280 |
| Total tax | ₹97,500 | ₹1,37,280 |
- HRA
- House Rent Allowance — part of your salary paid to cover rent. A portion (sometimes all of it) is tax-exempt under the old regime if you actually pay rent.
- Section 80C
- Old-regime deduction (up to ₹1,50,000/yr) for EPF, PPF, ELSS mutual funds, life insurance premiums, and a few other specified investments.
- Section 80D
- Old-regime deduction (up to ₹25,000/yr for those under 60) for health insurance premiums paid for yourself or your family.
- Section 24(b)
- Old-regime deduction (up to ₹2,00,000/yr) for interest paid on a home loan for a self-occupied property.
- Standard deduction
- A flat deduction every salaried person gets automatically, no receipts needed — ₹50,000 under the old regime, ₹75,000 under the new regime.
- Section 87A rebate
- A rebate that can zero out your tax entirely if your taxable income is low enough — under ₹7,00,000 (old regime) or ₹12,00,000 (new regime).
- Cess
- A flat 4% “Health & Education Cess” added on top of your calculated tax, under both regimes.
Simplified for general guidance — salaried individuals, FY 2025–26 slabs. Doesn't model LTA, perquisites, capital gains, or every minor deduction (80TTA, 80G, etc.). Confirm with a tax professional or the official Income Tax Department calculator before filing.