The Indian Income Tax system currently offers two regimes: the Old Tax Regime and the New Tax Regime. Choosing the right one can save you thousands of rupees.
This calculator helps you compare your tax liability under both regimes for the Financial Year 2024-25 (Assessment Year 2025-26).
New Tax Regime (Default)
The New Regime offers lower tax rates but disallows most exemptions and deductions (like HRA, 80C, 80D). However, a Standard Deduction of ₹75,000 is now available. Income up to ₹7 Lakhs is effectively tax-free due to the rebate u/s 87A.
Old Tax Regime
The Old Regime has higher tax slabs but allows you to claim various deductions such as Section 80C (PPF, LIC, ELSS), Section 80D (Health Insurance), HRA, and Home Loan Interest. It is beneficial if you have significant investments and expenses.