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Income Tax Calculator
Compare your liability under the old and new regime side by side, with surcharge and cess applied.
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Result
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Every salaried person in India now has to answer the same question once a year: old regime or new? The answer is not a matter of opinion. It is arithmetic, and it turns entirely on how much you actually claim in deductions — not how much you could claim in theory.
How the two regimes differ
The new regime offers wider slabs, a ₹75,000 standard deduction and a rebate that takes tax to nil up to ₹12 lakh of taxable income. In exchange it removes almost every deduction: 80C, 80D, HRA, LTA and home loan interest on a self-occupied property all stop working.
The old regime keeps all of those but taxes you on narrower slabs that reach 30% at ₹10 lakh. It wins only when your deductions are large and real — typically a home loan running alongside a full 80C, or heavy HRA in a metro.
Reading the result
The calculator shows both bills, the difference between them, and the deduction figure at which the old regime would catch up. If you are nowhere near that figure, the new regime is the simpler and cheaper answer, and you can stop maintaining receipts for the rest.
What this does not cover
Capital gains are taxed at their own rates rather than the slabs, so a year with a large share sale needs a separate computation. Marginal relief on surcharge is not applied, which matters just above ₹50 lakh and ₹1 crore of income.
Frequently asked questions
Which regime should I choose for FY 2025-26?
Whichever produces the smaller bill, which depends entirely on your deductions. The new regime wins for most people with few deductions, because of its wider slabs and the rebate that takes tax to nil up to ₹12 lakh of taxable income. The old regime wins when you have a running home loan plus a full 80C, or large HRA in a metro. The calculator shows both and the deduction level at which they cross over.
Can I switch between the old and new regime every year?
Salaried people with no business income can choose afresh each year while filing. Anyone with business or professional income can move from the new regime to the old only once, and returning to the new regime after that is final. Form 10-IEA is required to opt out of the new regime where business income exists.
Does this include surcharge and cess?
Yes. The 4% health and education cess is applied, and surcharge at 10%, 15%, 25% or 37% is applied once total income crosses ₹50 lakh, ₹1 crore, ₹2 crore and ₹5 crore respectively, with the new regime capped at 25%. Marginal relief just above each threshold is not applied, so the figure can be slightly conservative in that narrow band.
Why does the calculator not ask about my capital gains?
Capital gains are taxed at their own rates rather than at slab rates, so adding them to salary income would overstate the tax. Use the capital gains calculator for that part and add the two results together.
Is the standard deduction included automatically?
Yes — ₹75,000 under the new regime and ₹50,000 under the old regime are applied before the slabs, so you should enter your gross salary rather than a figure you have already reduced.