Income Tax Calculator
Compare Old vs New Tax Regime for FY 2024-25 (AY 2025-26)
1. Income & Deductions
Deductions (Only for Old Regime)
Tax Summary & Recommendation
Tax under Old Regime
Tax under New Regime
* Standard deduction of ₹50,000 is automatically applied to Salary Income in both regimes.
* Calculation includes 4% Health & Education Cess.
* Rebate u/s 87A is applied automatically where eligible (up to ₹5L for Old, ₹7L for New).
About the Income Tax Calculator
Our advanced Income Tax Calculator helps Indian taxpayers calculate their exact tax liability for the Financial Year (FY) 2024-25, corresponding to the Assessment Year (AY) 2025-26. With recent changes introduced in the Union Budget, choosing the right tax regime has never been more critical for your financial planning.
The Old Tax Regime
The Old Regime allows taxpayers to claim over 70 exemptions and deductions, including House Rent Allowance (HRA), Leave Travel Allowance (LTA), and deductions under Section 80C (up to ₹1.5 Lakhs), 80D (Health Insurance), and Section 24(b) (Home Loan Interest). This regime is generally beneficial if your total investments and deductions are exceptionally high.
The New Tax Regime (Default)
The New Tax Regime offers lower tax slab rates but removes most of the deductions and exemptions available in the old regime. However, salaried individuals can still claim a standard deduction of ₹50,000. Additionally, income up to ₹7,00,000 is entirely tax-free under the new regime due to the rebate under Section 87A.
Frequently Asked Questions (FAQs)
Which tax regime is the default for FY 2024-25?
Starting from FY 2023-24, the New Tax Regime has been made the default tax regime. If you do not explicitly choose the Old Regime and inform your employer or indicate it while filing your ITR, your taxes will be calculated according to the New Regime.
Is the ₹50,000 standard deduction available in both regimes?
Yes. Salaried employees and pensioners can claim a standard deduction of ₹50,000 from their salary/pension income under both the Old and the New Tax Regimes.
At what income level does tax become zero?
Thanks to the rebate under Section 87A:
– In the New Regime: Total taxable income up to ₹7,00,000 is completely tax-free.
– In the Old Regime: Total taxable income up to ₹5,00,000 is completely tax-free.