Indian Income Tax Calculator (2024-25)
Compare New Tax Regime vs Old Tax Regime
Basic Details
Deductions & Exemptions
Tax Calculation Results
New Tax Regime
Old Tax Regime
Recommended Regime
* Calculations include 4% Health and Education Cess
* Standard Deduction of ₹50,000 is included in Old Regime
Indian Income Tax Calculator 2024-25: Compare New vs Old Tax Regime
Confused about which tax regime to choose in FY 2024-25? Our comprehensive Indian Income Tax Calculator helps you make an informed decision by comparing both the New and Old tax regimes. Find out which option saves you more money and understand your tax liability with our easy-to-use calculator.
Key Features of Our Tax Calculator
- Real-time comparison between New and Old tax regimes
- Automatic calculation of tax liability with 4% Health and Education Cess
- Support for all deductions and exemptions under the Old regime
- Age-based tax slab considerations
- Instant recommendation for the most beneficial regime
Understanding the New Tax Regime (2024-25)
The New Tax Regime offers simplified tax calculation with lower tax rates but without most deductions. Here are the tax slabs:
| Income Range (₹) | Tax Rate |
|---|---|
| 0 – 3,00,000 | 0% |
| 3,00,001 – 6,00,000 | 5% |
| 6,00,001 – 9,00,000 | 10% |
| 9,00,001 – 12,00,000 | 15% |
| 12,00,001 – 15,00,000 | 20% |
| Above 15,00,000 | 30% |
Benefits of the Old Tax Regime
The Old Tax Regime might be beneficial if you can claim various deductions and exemptions:
- Section 80C investments (up to ₹1.5 lakh)
- Standard Deduction (₹50,000)
- House Rent Allowance (HRA)
- Leave Travel Allowance (LTA)
- NPS contribution (additional ₹50,000)
- Medical Insurance Premium (up to ₹25,000)
- Home Loan Interest (up to ₹2 lakh)
Detailed Comparison of New vs Old Tax Regime (FY 2023-24 onwards)
| Criteria | New Tax Regime (FY 2023-24 onwards) | Old Tax Regime |
|---|---|---|
| Basic Concept | Simplified structure with lower tax rates but no deductions/exemptions | Traditional system with higher tax rates but multiple deductions & exemptions |
| Applicability | Available for all taxpayers (Individuals, HUFs) | Available for all taxpayers (Individuals, HUFs) |
| Tax Slabs | Lower tax rates with no exemptions | Higher tax rates with exemptions |
| Income up to ₹2.5 lakh | 0% (No tax) | 0% (No tax) |
| Income ₹2.5 – ₹5 lakh | 5% | 5% |
| Income ₹5 – ₹7.5 lakh | 10% | 20% |
| Income ₹7.5 – ₹10 lakh | 15% | 20% |
| Income ₹10 – ₹12.5 lakh | 20% | 30% |
| Income ₹12.5 – ₹15 lakh | 25% | 30% |
| Income above ₹15 lakh | 30% | 30% |
| Standard Deduction | ₹50,000 (Added in Budget 2023) | ₹50,000 |
| Rebate under Section 87A | Available for income up to ₹7 lakh (No tax payable) | Available for income up to ₹5 lakh (No tax payable) |
| Surcharge on income above ₹5 Cr | Reduced to 25% | 37% |
| Deductions Allowed? | ❌ Most deductions NOT available | ✅ Available |
| 80C (LIC, PPF, ELSS, EPF, FD, NSC, etc.) | ❌ Not Available | ✅ Up to ₹1.5 lakh deduction |
| 80D (Health Insurance Premium) | ❌ Not Available | ✅ Up to ₹25,000 for self & family, ₹50,000 for senior citizens |
| 80E (Education Loan Interest Deduction) | ❌ Not Available | ✅ Available |
| 80EEA (Home Loan for First-Time Buyers) | ❌ Not Available | ✅ Up to ₹1.5 lakh deduction |
| 80G (Donations to Charity/NGOs) | ❌ Not Available | ✅ Available (50% or 100% deduction based on category) |
| 80TTA (Savings Interest ₹10,000 Exemption) | ❌ Not Available | ✅ Available for individuals (except senior citizens) |
| 80TTB (Interest on FD for Senior Citizens) | ❌ Not Available | ✅ Up to ₹50,000 deduction |
| HRA (House Rent Allowance) | ❌ Not Available | ✅ Available |
| LTA (Leave Travel Allowance) | ❌ Not Available | ✅ Available |
| Section 24B (Home Loan Interest Deduction) | ❌ Not Available | ✅ Up to ₹2 lakh deduction |
| NPS Contribution by Employer (80CCD(2)) | ✅ Available (Up to 10% of salary for private employees, 14% for govt employees) | ✅ Available |
| Entertainment Allowance & Professional Tax (Govt. Employees) | ❌ Not Available | ✅ Available |
| Family Pension Deduction (₹15,000 or 1/3rd of Pension) | ✅ Available | ✅ Available |
| Who Should Choose This? | Best for individuals with fewer tax-saving investments & deductions | Best for individuals with investments & tax-saving expenses |
| Switching Between Regimes? | ✅ Salaried Individuals can switch every year | ✅ Available |
| Default Tax Regime from FY 2023-24? | ✅ New Regime is the default (but can opt for Old Regime manually) | ❌ Not Default (Must be chosen explicitly) |
Who Should Choose the New Tax Regime?
The New Tax Regime might be better for:
- Individuals with limited investments and deductions
- Salaried employees with minimal tax-saving investments
- Freelancers and consultants with few deductions
- Those who prefer simplified tax calculation
Who Should Stick to the Old Tax Regime?
Consider staying with the Old Tax Regime if you:
- Have significant investments under Section 80C
- Pay substantial home loan interest
- Receive HRA and claim house rent benefits
- Have medical insurance for family members
- Make regular investments in tax-saving instruments
How to Use the Tax Calculator
- Enter your annual income
- Specify your age (important for senior citizen benefits)
- Input applicable deductions and exemptions
- Review the calculated tax liability for both regimes
- Check the recommended regime based on your inputs
Important Notes About Tax Calculation
- All calculations include 4% Health and Education Cess
- Standard Deduction of ₹50,000 is automatically included in Old Regime
- Age-based tax slabs are considered for senior citizens
- Maximum limits are applied to various deductions as per IT rules
Making the right choice between the New and Old tax regimes can lead to significant tax savings. Use our calculator to make an informed decision based on your specific financial situation. Remember that while the New regime offers simplicity, the Old regime might still be more beneficial if you actively invest in tax-saving instruments and can claim various deductions.
Keep in mind that tax planning should be a year-round activity, not just a last-minute decision. Use this calculator regularly to assess your tax liability and make adjustments to your tax-saving investments accordingly.
Disclaimer
This calculator provides estimates based on the current tax rules and regulations. For specific tax advice, please consult with a qualified tax professional. Tax laws and rates are subject to change, and actual tax liability may vary based on individual circumstances.