About the Income Tax Calculator (Old vs New)
Compare your income tax liability under the Old Regime and the New Regime for FY 2024-25. Find out which tax slab saves you the most money. Understanding how this works can significantly improve your financial planning. This tool is designed to provide you with the most accurate and up-to-date calculations required for your specific needs.
The Mathematical Formula
How to use this calculator?
Enter Gross Salary
Input your total annual income before any deductions.
Enter 80C & Other Deductions
Input your total investments in PPF, ELSS, LIC, etc. (These only apply to the Old Regime).
Compare Regimes
The calculator automatically deducts the รขโยน50,000 Standard Deduction and shows a side-by-side comparison of taxes in both regimes.
Select the Winner
Choose the regime that shows the lower tax liability and saves you the most money.
Frequently Asked Questions (FAQs)
Q. Which is better: Old or New Tax Regime?
If you have high investments (like 80C, HRA, Home Loan Interest) exceeding รขโยน3.75 Lakhs, the Old Regime is usually better. Otherwise, the New Regime is more beneficial due to lower tax slabs.
Q. Is Standard Deduction available in the New Regime?
Yes! From FY 2023-24 onwards, a Standard Deduction of รขโยน50,000 is available in both the Old and the New Tax Regime.
Q. What is the 87A rebate?
Under Section 87A, if your taxable income is up to รขโยน7 Lakh in the New Regime (or รขโยน5 Lakh in the Old Regime), your entire tax liability becomes zero.
Source & Citations: Mathematical models used in this tool are based on standard compounding formulas as recognized by the Reserve Bank of India (RBI) and major financial institutions.
Disclaimer: The results provided by this calculator are for informational purposes only. Actual returns or loan values may vary based on market conditions, bank policies, and taxation laws.