Old vs New Tax Regime

Compare your tax liability under both tax regimes and choose the better option

Income Details

Recommendation

Better Option

Old Regime

Savings

0

Old Tax Regime

Taxable Income8,50,000
Income Tax0
Cess (4%)0
Total Tax0

New Tax Regime

Taxable Income10,00,000
Income Tax0
Cess (4%)0
Total Tax0

Est. Recommendation

Better Option

Old Regime

Savings

0

Old Regime Tax

0

New Regime Tax

0

Old vs New Tax Regime Calculator FAQs

Which tax regime should I choose?

Choose the regime that results in lower tax liability. If you have significant deductions (HRA, 80C investments, home loan interest, etc.), old regime may be better. If you have minimal deductions, new regime with lower rates may save more tax.

Can I switch between tax regimes?

Yes, you can switch between old and new tax regimes each financial year. However, once you choose a regime for a year, you must stick with it for that entire year. Salaried employees can choose at the start of the year via Form 10IE.

What deductions are available in new tax regime?

New tax regime allows only standard deduction of ₹50,000 for salaried individuals. All other deductions like 80C, 80D, HRA, home loan interest, etc. are not available in the new regime.

Is new tax regime better for everyone?

No, new regime is better only if your total deductions under old regime are less than the tax savings from lower rates in new regime. Use this calculator to compare both regimes and choose the one that saves more tax.

Is this calculator accurate?

This calculator provides estimates based on standard tax slabs and deduction rules. Actual tax may vary based on specific circumstances. Always consult a CA or verify calculations with income tax department before filing returns.