About the New vs Old Tax Regime Calculator
The New vs Old Tax Regime Calculator compares tax payable under both Indian income tax regimes. Enter your annual income and common deductions such as 80C, HRA, home loan interest, NPS and health insurance to estimate which regime may be better for you.
How the Calculation Works
The mathematical formula used by this calculator is: Tax Saved = Higher Tax Regime Amount - Lower Tax Regime Amount. Old regime taxable income is calculated after standard deduction and eligible deductions. New regime taxable income uses the new regime standard deduction. Tax is then calculated using the respective slab rates and cess.
Key Benefits
- Compare both regimes instantly
- Include major deductions
- Plan tax declarations
- Reduce wrong TDS selection
Frequently Asked Questions
Which tax regime is better in India?
The better regime depends on your income and deductions. New regime is usually better when deductions are low. Old regime may be better if you claim HRA, 80C, home loan interest, NPS and insurance deductions.
Can salaried employees switch between old and new tax regime?
Salaried employees can usually choose the regime while filing ITR, even if they declared a different regime to the employer for TDS. Business income taxpayers have stricter rules.
Does the new tax regime allow 80C deduction?
No, most deductions like 80C, HRA and 80D are not available in the new tax regime. However, standard deduction for salaried taxpayers is available.
What deductions matter most in the old tax regime?
The most common old regime deductions are Section 80C up to Rs 1.5 lakh, HRA exemption, home loan interest up to Rs 2 lakh, NPS up to Rs 50,000 and health insurance under 80D.