Indian Income Tax Calculator - FY 2024-25 (AY 2025-26)
Compare your income tax liability under India's Old and New Tax Regimes for FY 2024-25 (AY 2025-26), and see which regime saves you more.
AI Quick Summary
Definition & Purpose:
This calculator estimates income tax liability for FY 2024-25 (AY 2025-26) under both India's Old Tax Regime (which allows deductions like Section 80C, 80D, and home loan interest) and the New Tax Regime under Section 115BAC (lower rates, fewer deductions), so you can compare which one results in lower tax.
When to Use:
Use this calculator before filing your Indian income tax return to compare your liability under both regimes and choose whichever results in lower tax.
Key Takeaway Insights:
- The New Regime uses lower slab rates but allows far fewer deductions; the Old Regime uses higher slab rates but lets you subtract itemized deductions like 80C, 80D, and home loan interest before tax is calculated — which regime wins depends entirely on how large your deductions are relative to your income.
- Both regimes include a rebate under Section 87A that brings tax to zero below a threshold — ₹7,00,000 taxable income under the New Regime, ₹5,00,000 under the Old Regime — so income just above these thresholds can see a sharp jump in tax owed.
- A flat 4% Health and Education Cess is added on top of the basic slab tax in both regimes, calculated after any rebate is applied.
Income & Deductions
Deductions (Only for Old Regime)
Tax Regime Comparison
Tax Liability Comparison
Introduction
Indian Income Tax Calculator – Old vs. New Regime (FY 2024-25)
This calculator estimates your income tax liability for FY 2024-25 (AY 2025-26) under both of India's tax regimes side by side: the Old Tax Regime, which allows itemized deductions like Section 80C, 80D, and home loan interest but taxes income at higher slab rates, and the New Tax Regime under Section 115BAC, which uses lower slab rates and a larger standard deduction but disallows most itemized deductions.
How Tax Is Calculated in Each Regime
Both regimes tax income progressively — each slab's rate applies only to the income within that slab, not to your entire taxable income.
New Regime slabs (salaried standard deduction: ₹75,000):
| Taxable Income | Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 – ₹7,00,000 | 5% |
| ₹7,00,001 – ₹10,00,000 | 10% |
| ₹10,00,001 – ₹12,00,000 | 15% |
| ₹12,00,001 – ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
A full rebate under Section 87A brings tax to Nil if taxable income doesn't exceed ₹7,00,000.
Old Regime slabs (salaried standard deduction: ₹50,000):
| Taxable Income | Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
The Section 87A rebate under this regime applies if taxable income doesn't exceed ₹5,00,000.
In both regimes, a 4% Health and Education Cess is added to whatever basic slab tax remains after the rebate: Total Tax = Basic Slab Tax × 1.04.
Worked Example
A salaried individual with a gross annual salary of ₹12,00,000, claiming ₹1,50,000 under Section 80C and ₹25,000 under Section 80D:
New Regime: Taxable income = ₹12,00,000 − ₹75,000 = ₹11,25,000. Slab tax = (₹4,00,000 × 5%) + (₹3,00,000 × 10%) + (₹1,25,000 × 15%) = ₹20,000 + ₹30,000 + ₹18,750 = ₹68,750. With 4% cess: ₹71,500.
Old Regime: Deductions = ₹50,000 (standard) + ₹1,50,000 (80C) + ₹25,000 (80D) = ₹2,25,000. Taxable income = ₹12,00,000 − ₹2,25,000 = ₹9,75,000. Slab tax = (₹2,50,000 × 5%) + (₹4,75,000 × 20%) = ₹12,500 + ₹95,000 = ₹1,07,500. With 4% cess: ₹1,11,800.
Choosing the New Regime saves ₹40,300 in this case.
Which Regime Wins at Different Deduction Levels
The right regime depends heavily on how much you can actually deduct under the Old Regime. Holding income at various levels with typical 80C/80D deductions claimed:
| Gross Salary | Deductions Claimed | New Regime Tax | Old Regime Tax | Better Choice |
|---|---|---|---|---|
| ₹8,00,000 | None | ₹23,400 | ₹65,000 | New Regime, by ₹41,600 |
| ₹12,00,000 | ₹1,75,000 (80C + 80D) | ₹71,500 | ₹1,11,800 | New Regime, by ₹40,300 |
| ₹15,00,000 | ₹1,75,000 (80C + 80D) | ₹1,30,000 | ₹2,02,800 | New Regime, by ₹72,800 |
| ₹20,00,000 | ₹3,75,000 (80C + 80D + full 24b) | ₹2,78,200 | ₹2,96,400 | New Regime, by ₹18,200 |
Even at higher incomes with the maximum home loan interest deduction claimed, the New Regime still wins in these scenarios — but the margin narrows considerably as deductions grow, which is why it's worth running the comparison for your specific numbers rather than assuming one regime is always better.
What This Calculator Does Not Include
Formula & Variables Explained
This tool utilizes standard equations formulated under standard rules.
Variables:
- Input parameter: Values supplied to resolve the output formula.
How to Calculate (Step-by-Step)
- Input the required parameters into the form.
- Click the calculate or auto-compute option.
- The outputs will refresh instantly with step-by-step variables.
Worked Examples Calculation
1₹12,00,000 Gross Salary, ₹1,50,000 (80C) + ₹25,000 (80D) Deductions
Gross Annual Salary = ₹12,00,000, Section 80C = ₹1,50,000, Section 80D = ₹25,000, Salaried = Yes
New Regime: Taxable = 12,00,000 - 75,000 = 11,25,000. Slab tax = (4,00,0005%) + (3,00,00010%) + (1,25,00015%) = 20,000+30,000+18,750 = 68,750. With 4% cess: 68,7501.04 = ₹71,500. Old Regime: Deductions = 50,000 (std) + 1,50,000 (80C) + 25,000 (80D) = 2,25,000. Taxable = 12,00,000 - 2,25,000 = 9,75,000. Slab tax = (2,50,0005%) + (4,75,00020%) = 12,500+95,000 = 1,07,500. With 4% cess: 1,07,500*1.04 = ₹1,11,800.
New Regime Tax = ₹71,500.00 | Old Regime Tax = ₹1,11,800.00 | Savings by Choosing New Regime = ₹40,300.00
2₹8,00,000 Gross Salary, No Itemized Deductions
Gross Annual Salary = ₹8,00,000, Section 80C = ₹0, Section 80D = ₹0, Salaried = Yes
New Regime: Taxable = 8,00,000 - 75,000 = 7,25,000. Slab tax = (4,00,0005%) + (25,00010%) = 20,000+2,500 = 22,500. With cess: ₹23,400. Old Regime: Taxable = 8,00,000 - 50,000 = 7,50,000. Slab tax = (2,50,0005%) + (2,50,00020%) = 12,500+50,000 = 62,500. With cess: ₹65,000.
New Regime Tax = ₹23,400.00 | Old Regime Tax = ₹65,000.00 | Savings by Choosing New Regime = ₹41,600.00
Real-World Applications
Widely used in student curriculum, professional projections, and quick estimations.
Limitations & Common Mistakes
- Entering incompatible unit formats (e.g. Mixing Metric and Imperial).
- Typographical mistakes in numeric entry fields.
Uses the FY 2024-25 (AY 2025-26) slab rates and standard deduction amounts, applies the Section 87A rebate, and adds a flat 4% cess. It does not model surcharge on very high incomes, capital gains taxed under separate rules, or every possible deduction (e.g., Section 80E education loan interest, Section 80G donations) — only the most common ones (80C, 80D, 24b, and a general 'other deductions' field).
Frequently Asked Questions (FAQ)
Q:What is the standard deduction in FY 2024-25?
Salaried employees and pensioners get a flat standard deduction of ₹75,000 under the New Tax Regime (raised from ₹50,000 in the July 2024 Budget) and ₹50,000 under the Old Tax Regime. This deduction is subtracted from gross income before any slab-rate tax is applied, and it's separate from — and in addition to — any itemized deductions like Section 80C.
Q:Can I switch between the Old and New tax regimes?
Salaried individuals can choose their preferred regime freely each financial year when filing their income tax return, with no restriction on switching back and forth. Individuals with business or professional income face a stricter rule — they generally get only one opportunity to switch back to the Old Regime after opting for the New Regime.
Q:Are home loan interest deductions allowed in the New Tax Regime?
No — deductions for home loan interest on a self-occupied property under Section 24(b) are not available under the New Tax Regime. They remain available only under the Old Regime, capped at ₹2,00,000 per year, which is why this calculator's home loan interest field only reduces taxable income in the Old Regime calculation.
Q:Is there a tax rebate if my income is below ₹7 lakh?
Yes — under the New Tax Regime, a full rebate under Section 87A brings tax liability to zero if your taxable income (after the standard deduction) is up to ₹7,00,000. The equivalent threshold under the Old Regime is lower, at ₹5,00,000 taxable income. Crossing just above either threshold can result in a noticeably larger tax bill than being just below it, since the rebate applies to the entire tax amount, not just the excess.
References & Citations
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