Income Tax Calculator
Compare Old vs New Tax Regime and find your exact tax liability with 100% accuracy.
Plan Perfectly with the Income Tax Calculator
Navigating the complex landscape of Indian taxation can be overwhelming. With the introduction of the dual tax system, choosing between the Old Tax Regime and the New Tax Regime is the most critical financial decision of the year. Our advanced Income Tax Calculator takes the guesswork out of your financial planning by providing a side-by-side, 100% accurate comparison of both structures.
Key Differences: Old vs. New Tax Regime
The primary difference lies in deductions and tax slabs. The Old Regime offers over 70 deductions and exemptions (like Section 80C for PPF/LIC, 80D for medical insurance, HRA, and Home Loan interest), but taxes your remaining income at higher slab rates. Conversely, the New Regime provides significantly lower tax slab rates but revokes almost all major deductions except the Standard Deduction of ₹50,000 for salaried employees.
The Power of Section 87A Rebate
The Section 87A rebate is a game-changer. Under the New Regime, if your net taxable income is up to ₹7 Lakhs, you get a full tax rebate, meaning your tax liability is absolutely zero. Under the Old Regime, this zero-tax threshold sits at ₹5 Lakhs.
Frequently Asked Questions
Is standard deduction available in the New Tax Regime?
Yes, starting from recent financial updates, the standard deduction of ₹50,000 is now available to salaried individuals and pensioners under both the Old and New Tax Regimes.
What is the Section 87A rebate limit?
Under the New Tax Regime, a full tax rebate under Section 87A is available for taxable income up to ₹7 Lakhs. Under the Old Tax Regime, the rebate is available for taxable income up to ₹5 Lakhs.
Which tax regime is better?
There is no one-size-fits-all answer. If you have significant investments in PPF, ELSS, Medical Insurance, and a running Home Loan, the Old Regime might save you money. If you prefer high in-hand liquidity without forced investments, the New Regime is highly beneficial. Use our calculator above to find your exact numbers.