Indian Income Tax Calculator
Compare your tax liability under the Old Regime vs the New Regime for the latest FY/AY tax slabs.
Tax Optimization Results
Showing the most tax-friendly regime for your profile.
Detailed Guide: Old vs New Tax Regime in India
Selecting between the **Old Tax Regime** and the **New Tax Regime** is one of the most critical financial planning decisions for Indian taxpayers. While the New Tax Regime offers lower slab rates, it eliminates almost all major deductions. Conversely, the Old Tax Regime has higher tax rates but allows you to reduce your taxable income significantly through tax exemptions.
Understanding the Tax Slabs
Here is a reference of the current income tax slabs applied for calculations:
| Income Range | Old Regime Rates | New Regime Rates |
|---|---|---|
| Up to ₹2,500,000 (Old) / ₹3,000,000 (New) | Nil | Nil |
| ₹3,00,001 to ₹5,00,000 | 5% | Nil |
| ₹5,00,001 to ₹6,00,000 | 20% | 5% |
| ₹6,00,001 to ₹9,00,000 | 20% | 10% |
| ₹9,00,001 to ₹12,00,000 | 30% | 15% |
| ₹12,00,001 to ₹15,00,000 | 30% | 20% |
| Above ₹15,00,000 | 30% | 30% |
How to Choose the Right Regime?
If your investments in deductions (such as PPF, life insurance, medical insurance, home loan interest, and HRA) are high (typically above ₹2,50,000 per year), the **Old Regime** may help you pay lower taxes. If you have no savings/investments or prefer simpler taxation without paperwork, the **New Regime** is usually more beneficial due to the lower tax slabs and rebate options under Section 87A (tax rebate on taxable income up to ₹7 Lakhs in the New Regime).
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