Which tax regime should I choose?

Choose old regime if your total deductions (80C, 80D, HRA, home loan interest, NPS) exceed ₹3.75-4 lakh. Choose new regime if you have fewer deductions, prefer simplicity, or don't have investments that qualify for deductions. For income up to ₹7 lakh, new regime often results in zero tax due to 87A rebate.

What are the income tax slabs for FY 2024-25?

New regime: 0-3L (nil), 3-7L (5%), 7-10L (10%), 10-12L (15%), 12-15L (20%), above 15L (30%). Old regime: 0-2.5L (nil), 2.5-5L (5%), 5-10L (20%), above 10L (30%). Plus 4% health and education cess on total tax.

What deductions are available under Section 80C?

80C allows up to ₹1.5 lakh deduction for: PPF, ELSS mutual funds, life insurance premium, EPF contribution, NSC, 5-year tax-saving FD, home loan principal, children's tuition fees, Sukanya Samriddhi, and senior citizen savings scheme.

Is there any tax if income is below ₹7 lakh?

Under new tax regime, if your taxable income (after standard deduction) is up to ₹7 lakh, you get full rebate under Section 87A, making tax liability zero. Under old regime, the 87A rebate applies only for taxable income up to ₹5 lakh.

Can I switch between old and new regime every year?

Salaried individuals can choose between regimes each financial year. Business/profession income earners who opt out of new regime can switch back only once. Inform your employer of your choice for correct TDS; final selection is made when filing ITR.

Income Tax Calculator India

Calculate your income tax for FY 2024-25 (AY 2025-26). Compare old vs new tax regimes and find out which one saves you more tax.

Income Details

Annual Gross Income

Age Group

Deductions (Old Regime)

80C (Max 1.5L)

80D (Health)

HRA Exemption

Other (Home Loan, etc)

Enter your income details to see the breakdown.

We'll show you a side-by-side comparison of Old vs New Regime.

What this calculator does

Calculates tax under both old and new regimes
Includes all deductions (80C, 80D, HRA, home loan, NPS)
Shows which regime saves more tax for your income
Applies latest FY 2024-25 tax slabs and rebates

How to Use

Enter gross income

Annual salary + other income sources

Add 80C investments

PPF, ELSS, LIC, etc. (max ₹1.5L)

Add other deductions

80D, HRA, home loan, NPS

Select age group

Below 60, 60-80, or above 80

Compare regimes

See tax under old vs new regime

Choose best option

Pick the regime with lower tax

Examples

₹10 Lakh Income - Regime Comparison

Salaried individual with ₹10 lakh annual income, ₹1.5 lakh 80C, ₹25,000 health insurance (80D), no HRA.

New Regime

Gross Income₹10,00,000

Standard Deduction- ₹75,000

Taxable Income₹9,25,000

Tax After Rebate₹42,500

Cess (4%)₹1,700

Total Tax₹44,200

Old Regime

Gross Income₹10,00,000

Deductions (Std, 80C, 80D)- ₹2,25,000

Taxable Income₹7,75,000

Tax After Rebate₹67,500

Cess (4%)₹2,700

Total Tax₹70,200

New Regime saves ₹26,000 in this case. With only ₹1.75L in deductions (excl. Std Ded), new regime is better.

₹15 Lakh Income - High Deductions

₹15 lakh income with ₹1.5L (80C) + ₹50K (80D) + ₹2L (home loan) + ₹50K (NPS 80CCD) + ₹1.2L (HRA) = ₹5.7L total deductions.

New Regime

Taxable Income₹14,25,000

Total Tax₹1,56,000

Old Regime

Taxable Income₹8,80,000

Total Tax₹90,480

Old Regime saves ₹65,520 here. With ₹5.7L in deductions, old regime is significantly better.

Income Tax Slabs FY 2024-25

New Tax Regime (Default)

Income Slab	Tax Rate
Up to ₹3,00,000	Nil
₹3,00,001 - ₹7,00,000	5%
₹7,00,001 - ₹10,00,000	10%
₹10,00,001 - ₹12,00,000	15%
₹12,00,001 - ₹15,00,000	20%
Above ₹15,00,000	30%

Standard deduction: ₹75,000. Rebate u/s 87A for income up to ₹7L.

Old Tax Regime

Income Slab	Tax Rate
Up to ₹2,50,000	Nil
₹2,50,001 - ₹5,00,000	5%
₹5,00,001 - ₹10,00,000	20%
Above ₹10,00,000	30%

Standard deduction: ₹50,000. All deductions (80C, 80D, HRA, etc.) available.

Key Deductions (Old Regime Only)

Section	Deduction For	Max Limit
80C	PPF, ELSS, LIC, EPF, NSC, tuition fees	₹1,50,000
80CCD(1B)	NPS (additional)	₹50,000
80D	Health insurance premium	₹25,000 - ₹1,00,000*
24(b)	Home loan interest (self-occupied)	₹2,00,000
10(13A)	HRA exemption	As per rules
80TTA	Savings account interest	₹10,000

*80D: ₹25K self + ₹25K parents (₹50K if senior citizen). Max ₹1L if both are seniors.

Frequently Asked Questions

The old regime has higher tax rates but allows deductions like 80C (₹1.5 lakh), 80D (health insurance), HRA, home loan interest, and LTA. The new regime has lower tax rates with a higher standard deduction (₹75,000) but does not allow most deductions. New regime is the default from FY 2023-24.

Key Terms

Gross Total Income

Sum of all income sources: salary, house property, capital gains, business income, and other sources before deductions.

Taxable Income

Gross income minus all eligible deductions and exemptions. Tax is calculated on this amount.

Section 87A Rebate

Tax relief for lower income. New regime: up to ₹25,000 rebate if income ≤ ₹7L. Old regime: up to ₹12,500 if income ≤ ₹5L.

Cess

Health and Education Cess of 4% charged on total tax (including surcharge). Goes to specific government programs.

TDS

Tax Deducted at Source. Employer/payer deducts tax before paying you. Credited against your total tax liability.

Assessment Year (AY)

The year in which income is assessed and ITR filed. AY 2025-26 is for income earned in FY 2024-25.

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Disclaimer: This calculator provides estimates for educational purposes only. Tax laws are complex and subject to change. Surcharge for high incomes and specific exemptions may not be fully covered. Consult a qualified CA or tax professional for accurate tax planning. Rates as per FY 2024-25.