India Old vs New Tax Regime Calculator
Compares the tax under the old regime with deductions against the new regime with lower slab rates and shows which leaves you better off.
Enter your numbers
Example: 1200000
Example: 150000
Example: 22
Example: 15
Recent
Formula
How the calculation works
The old regime first subtracts your eligible deductions from the gross income and then applies a higher rate to what remains.
The new regime applies lower slab rates but gives up most deductions, so it taxes the whole gross income at a lower rate.
For 1,200,000 rupees with 150,000 of deductions the old regime gives 231,000 rupees of tax against 180,000 under the new regime, so the new regime saves 51,000.
Common mistakes
- Comparing the regimes without counting all eligible deductions understates the old regime and can point you the wrong way.
- Assuming the regime choice is permanent is wrong, because salaried taxpayers can usually switch regime each year.
When to use it
- Use it before you file to decide which regime to opt for this financial year.
- Use it to see how much deductions you must claim for the old regime to beat the new one.
Worked example
On 1,200,000 rupees with 150,000 of deductions the old regime tax at 22 percent is 231,000 rupees, the new regime at 15 percent is 180,000, so the new regime saves 51,000.
Common questions
Which regime is better if I have large deductions?
Large deductions favour the old regime, because it taxes income after those deductions, while the new regime gives them up in exchange for lower slab rates.
Related tools
-
Land Area Converter
Convert between bigha, katha, shotok, acre and square feet.
-
Gold Weight Converter
Convert gold weight between bhori, ana, grams and tola.
-
Zakat Calculator
Work out zakat at 2.5% on wealth above the nisab threshold.
-
Gratuity Calculator
Gratuity due on leaving a job, counted per completed year of service.
-
Remittance Cost
What a remittance really costs once the fee and a weak exchange rate are counted.
-
Compare Two Job Offers
Compare two offers on total yearly value, counting bonus, allowances and commuting.
-
Gold Loan Value
How much a loan against gold is worth, from weight and purity.
-
Property Tax and Registration
The cost of buying a property beyond the price, due on the day.