Income Tax Calculator (FY 2024-25 / AY 2025-26)
Accurately calculate your income tax liability and compare the Old vs. New Tax Regime to discover which option maximizes your tax savings.
Tax Slab Comparison: New vs. Old Regime (FY 2024-25)
| Income Range | New Tax Regime (Budget 2024) | Old Tax Regime |
|---|---|---|
| Up to ₹3,00,000 | Nil | Nil (Up to ₹2.5L) |
| ₹3,00,001 – ₹7,00,000 | 5% (Full rebate up to ₹7L under Sec 87A) | 5% (₹2.5L to ₹5L) / 20% (>₹5L) |
| ₹7,00,001 – ₹10,00,000 | 10% | 20% |
| ₹10,00,001 – ₹12,00,000 | 15% | 30% |
| ₹12,00,001 – ₹15,00,000 | 20% | 30% |
| Above ₹15,00,000 | 30% | 30% |
Deductions Allowed in Old Regime
- Section 80C: Up to ₹1.5 Lakh (EPF, PPF, ELSS, Life Insurance, Home Loan Principal).
- Section 80D: Up to ₹25,000 (Self/Family) + ₹50,000 (Senior Parents) Health Insurance.
- Section 24(b): Up to ₹2 Lakh interest on Home Loan.
- HRA / LTA: House Rent Allowance and Leave Travel Allowance exemptions.
- Section 80CCD(1B): Additional ₹50,000 for National Pension Scheme (NPS).
New Regime Key Highlights (Budget 2024)
- Standard Deduction: Increased to ₹75,000 for salaried employees (up from ₹50,000).
- Zero Tax up to ₹7.75 Lakh: Salaried individuals with income up to ₹7.75 Lakh pay ₹0 tax after standard deduction and Section 87A rebate.
- Simplified Filing: No need to collect receipts or maintain investment proofs for 80C/80D.
- Employer NPS (Sec 80CCD(2)): Allowed up to 14% of Basic Salary in New Regime.
Frequently Asked Questions (Income Tax FAQ)
When is the Old Regime better than the New Regime?
If your total eligible deductions (80C, 80D, HRA, Home Loan Interest under Section 24b) exceed approximately ₹3.75 Lakh to ₹4.25 Lakh, the Old Regime usually results in lower tax. If deductions are lower, the New Regime is generally superior.
Can I switch between Old and New Regimes every year?
Salaried taxpayers (with no business or professional income) can freely choose between the Old and New Regime each year when filing their ITR. Individuals with business/profession income can only switch back to the Old Regime once in a lifetime.
What is the 4% Health & Education Cess?
A 4% Health and Education Cess is applied on the total calculated income tax amount across both tax regimes to fund government healthcare and primary education programs.
What is Section 87A Marginal Tax Relief?
Under the New Regime, if taxable income marginally exceeds ₹7,00,000 (e.g. ₹7,05,000), marginal relief ensures the tax payable cannot exceed the amount by which income exceeds ₹7,00,000.