Income Tax Calculator – Old vs New Regime (India)
Compare income tax liability under the old and new tax regimes in India. This calculator helps you determine which regime is more beneficial for your income level and helps you make informed tax planning decisions.
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Frequently Asked Questions
Old vs new tax regime – which is better?
The better regime depends on your income level and available deductions. The new regime offers lower tax rates but fewer deductions. If you have significant deductions (like 80C, 80D, HRA, etc.), the old regime might be better. For those with minimal deductions, the new regime is often more beneficial. Use this calculator to compare both for your specific situation.
How is income tax calculated in India?
Income tax in India is calculated using progressive tax slabs. Different income ranges are taxed at different rates. The old regime allows various deductions and exemptions, while the new regime offers lower tax rates but with limited deductions. Tax is calculated on taxable income after applying applicable deductions and exemptions.
Can I switch regimes every year?
Yes, you can choose between the old and new tax regime each financial year. However, salaried individuals need to inform their employer at the beginning of the financial year. For those with business income, the choice can be made while filing the return. It's important to evaluate both regimes each year based on your income and deductions.