Income Details
Income Tax Comparison
| Old Regime | New Regime | |
|---|---|---|
| Taxable Income | ₹ | ₹ |
| Total Deductions | ₹ | ₹ |
| Home Loan Interest (24b) | ₹ | — |
| Total Tax Payable | ₹ | ₹ |
| Net Income | ₹ | ₹ |
How Income Tax Is Calculated & Compared
Income tax in India is calculated on your taxable income using slab-based tax rates defined by the government. Your final tax liability can vary significantly depending on whether you apply deductions available under the Old Tax Regime or opt for the simplified New Tax Regime.
This calculator automatically computes your tax under both regimes and shows a side-by-side comparison, along with how much tax you can save by choosing one regime over the other.
- Gross Income: Your total annual income before any deductions, including salary, bonus, and other taxable earnings.
- Standard Deduction: A flat deduction of ₹50,000 is applied for salaried individuals under both tax regimes.
- Old Regime Deductions (Optional): If you turn on the deductions toggle, eligible amounts under sections such as 80C (PF, ELSS, LIC), 80D (health insurance), HRA exemption, and home loan interest (Section 24b) are reduced from your income to arrive at taxable income.
- New Regime Calculation: The New Tax Regime ignores all deductions and exemptions (except standard deduction) but applies lower slab rates uniformly to all taxpayers, regardless of age.
- Taxable Income: This is the income remaining after applying applicable deductions. Income tax is calculated slab-wise on this amount.
- Section 87A Rebate: If your taxable income falls within the prescribed limits (up to ₹5 lakh in the Old Regime or ₹7 lakh in the New Regime), you may be eligible for a rebate that can reduce your income tax to zero.
- Health & Education Cess: A cess of 4% is added on the final income tax amount.
- Regime Comparison & Savings: The calculator compares total tax payable under both regimes and highlights how much money you can save by choosing the more beneficial option.
- Net Income: This represents your approximate annual take-home income after income tax, helping you understand the real financial impact of your tax regime choice.
Note: This is an estimated calculation for resident individuals. Actual tax liability may vary based on additional income sources, surcharge, exemptions, and filing conditions.