What is a income Tax Calculator?
India currently runs two parallel income tax regimes. The new regime has lower slab rates and a standard deduction of ₹75,000, but doesn’t allow most other deductions (80C, 80D, HRA exemption, home loan interest, and so on) — and it’s the default regime unless you actively opt for the old one. The old regime has higher slab rates but lets you claim those deductions, which can make it cheaper if you have a large enough deduction base.
Enter your annual gross income and, for a fair comparison, your total eligible deductions under the old regime (80C, 80D, HRA exemption, etc. combined) to see tax payable under each.
How the comparison is calculated
Under the new regime, taxable income up to ₹12 lakh attracts zero tax after the Section 87A rebate, and marginal relief prevents a cliff-edge jump just above that threshold. The old regime’s rebate applies only up to ₹5 lakh taxable income, with no such smoothing.
This excludes surcharge, which applies once taxable income crosses ₹50 lakh, and assumes the "other deductions" figure you enter for the old regime is your complete, correctly-computed deduction total — including things like HRA exemption or home loan interest, which have their own rules (see the HRA Calculator).
Frequently asked questions
Which regime is the default now?
The new tax regime is the default — you have to actively opt for the old regime (via Form 10-IEA, for those with business income, or simply by choosing it while filing, for salaried individuals) if you want to use it instead.
How much deduction do I need for the old regime to win?
It depends heavily on your income level, but as a rough guide, the old regime typically only becomes cheaper once your total deductions (80C + 80D + HRA + home loan interest, etc.) cross roughly ₹4–4.5 lakh — try entering your real numbers above to check your specific case.
Is this the same as TDS on my salary?
This shows your annual tax liability. For the monthly amount your employer would deduct from each pay cheque, see the TDS Calculator.
Does this include cess and surcharge?
It includes the standard 4% health and education cess, but not surcharge — which only applies above ₹50 lakh taxable income and follows its own marginal relief rules.