Compare Old vs New Tax Regime for FY 2024–25. Get slab-wise breakup, deductions and find which regime saves you more tax.
| Income Slab | Rate | Tax |
|---|
An Income Tax Calculator is a free online tool that helps salaried employees, self-employed professionals, and business owners estimate their annual income tax liability as per the latest tax slabs and rules. This calculator supports both the Old Tax Regime (with deductions) and the New Tax Regime (with lower slab rates but fewer deductions) for Financial Year 2024–25 (Assessment Year 2025–26).
Income Tax in India is levied by the Central Government on the annual income of individuals, HUFs, firms, and companies. For individuals, the tax is calculated based on income slabs — with different rates for different income levels. The Finance Act 2020 introduced the New Tax Regime, and starting FY 2023–24, it became the default regime. Taxpayers can choose either regime based on which gives them a lower tax outgo.
| Income Range | Old Regime Rate | New Regime Rate | Effective For |
|---|---|---|---|
| Up to ₹2,50,000 | Nil | Nil | All individuals |
| ₹2,50,001 – ₹5,00,000 | 5% | 5% | Below 60 years |
| ₹5,00,001 – ₹6,00,000 | 20% | 5% | New regime benefit |
| ₹6,00,001 – ₹9,00,000 | 20% | 10% | New regime benefit |
| ₹9,00,001 – ₹10,00,000 | 20% | 15% | Varies by deductions |
| ₹10,00,001 – ₹12,00,000 | 30% | 20% | New regime cheaper |
| Above ₹15,00,000 | 30% | 30% | Same rate |
Just like the Ponderal Index measures body health (PI = weight/height³), your Tax Efficiency Ratio measures financial health. Ideally, your total tax burden should not exceed 15–20% of gross income for most middle-class earners. If your effective tax rate is above 25%, you should explore all eligible deductions including 80C, 80D, NPS, and HRA to optimize your tax outgo.
Step 1: Enter your annual gross income (CTC or total income before deductions). Step 2: Fill in all eligible deductions — 80C investments (PPF, ELSS, PF, LIC), 80D health insurance, HRA exemption, and other deductions like NPS or home loan interest. Step 3: Select your age group (determines basic exemption limit). Step 4: Click "Calculate Tax" to see both old and new regime tax, slab-wise breakup, and which regime saves you more money.
Section 80C allows up to ₹1.5 lakh deduction for PPF, ELSS, EPF, LIC premium, home loan principal, etc. Section 80D allows up to ₹25,000 for health insurance (₹50,000 for senior citizens). HRA exemption depends on actual HRA received, rent paid, and city type. Standard Deduction of ₹50,000 is available to all salaried employees. NPS contribution under Section 80CCD(1B) offers additional ₹50,000 deduction.
This calculator provides an estimate based on inputs entered. It does not cover all edge cases such as capital gains, business income, multiple house properties, foreign income, or surcharge for high-income individuals. Agricultural income, exempt allowances, and relief under Section 89 are not included. Tax results may differ slightly from actual ITR computation. Always verify with a Chartered Accountant for filing purposes.
Two methods exist in India: the Old Regime uses progressive slab rates with deductions, and the New Regime (default from FY 2023–24) uses lower slab rates without most deductions. Both methods add a 4% Health & Education Cess on the computed tax. Individuals with income up to ₹5 lakh (old) or ₹7 lakh (new) get a full tax rebate under Section 87A — meaning zero tax liability.
Choose the Old Regime if you have high deductions (80C investments, HRA, home loan interest, NPS) totaling more than ₹3–4 lakhs. Choose the New Regime if you have few or no deductions, or if your income is between ₹7–12 lakhs where new slabs are significantly lower. Always calculate both before filing your ITR — switching is allowed once per year for salaried individuals.