How to use this Income Tax calculator
Choosing between India's old and new income tax regimes is no longer a formality — for many salaried people the difference runs into tens of thousands of rupees a year. The new regime trades away most deductions for lower slab rates, while the old regime rewards those who invest and claim exemptions.
This calculator estimates your liability under both regimes side by side, applying the standard deduction, the section 87A rebate, surcharge for higher incomes and the 4% health and education cess, so you can see which structure actually costs you less.
Old regime versus new regime
The old regime has higher slab rates but lets you reduce taxable income through HRA, 80C investments, 80D premiums, home-loan interest and more. The new regime applies lower rates to your income with almost none of those deductions.
There is no universal winner. The break-even depends entirely on how much you can legitimately deduct — enter your old-regime deductions to find your personal crossover point.
Rebate, standard deduction and cess
Salaried taxpayers get a flat standard deduction before tax is computed. Below a defined income threshold, the section 87A rebate can bring your liability down to zero.
On the tax finally arrived at, a 4% health and education cess is added, and a surcharge applies on top for high incomes, with marginal relief smoothing the jump at each threshold.
What this estimate excludes
The tool models a resident individual below 60 with salary-type income. It does not handle capital gains taxed at special rates, business income, clubbing, or senior-citizen slabs.
Because slab rates and limits change with each Union Budget, the methodology is dated and linked to the Income Tax Department's published slabs so you can confirm the figures for your assessment year.
Using the result before you declare
Run the calculation early in the financial year so you can plan investments and proof submissions, not in March when options are limited.
Once you know which regime is cheaper, set your employer's investment declaration accordingly to avoid excess TDS being deducted from your monthly salary.