Free Income Tax Calculator – Instantly Compare Old vs New Tax Regime
Calculate your income tax liability in minutes with the Easy Return Income Tax Calculator. Get a clear, side-by-side comparison of your tax payable under the old and new tax regimes before you file your ITR.
Understanding Income Tax Slabs in India
Income tax slabs are fixed income ranges defined by the Government of India under the Income Tax Act, 1961. Each slab carries a progressively higher tax rate — the more you earn, the higher the rate that applies to income falling in the upper bands. This is known as progressive taxation.
India’s Central Board of Direct Taxes (CBDT) revises these slabs through the Union Budget. Taxpayers can choose between the new and old tax regimes, subject to the applicable rules.
New Tax Regime — Section 115BAC
Lower income tax slab rates with fewer deductions and exemptions. This is the default tax regime.
Old Tax Regime
Higher slab rates, but allows a wider range of deductions and exemptions such as 80C, 80D and HRA, where applicable.
What Is the New Tax Regime and Who Should Choose It?
The new tax regime was introduced under Section 115BAC of the Income Tax Act, 1961. It offers lower, simplified income tax slab rates in exchange for giving up most popular tax deductions and exemptions.
The New Tax Regime May Suit You If:
- You are a salaried individual with straightforward finances.
- You do not rely heavily on tax-saving investments.
- You do not claim large deductions such as HRA, home loan interest or Section 80C.
Current New Tax Regime Slab Rates
The new tax regime slab rates have been revised and made more favorable in recent budgets. The slabs below reflect the latest applicable rates under the new regime:
| Income Tax Slabs (₹) | Income Tax Rate |
|---|---|
| Up to ₹4 lakh | Nil |
| ₹4 lakh to ₹8 lakh | 5% |
| ₹8 lakh to ₹12 lakh | 10% |
| ₹12 lakh to ₹16 lakh | 15% |
| ₹16 lakh to ₹20 lakh | 20% |
| ₹20 lakh to ₹24 lakh | 25% |
| Above ₹24 lakh | 30% |
Old Tax Regime Slab Rates and When They Apply
The old tax regime slab rates have remained unchanged for several years. These rates apply to resident individuals below 60 years of age:
| Income Tax Slabs (₹) | Income Tax Rate |
|---|---|
| Up to ₹2.5 lakh | Nil (basic exemption limit) |
| ₹2.5 lakh to ₹5 lakh | 5% |
| ₹5 lakh to ₹10 lakh | 20% |
| Above ₹10 lakh | 30% |
Income Tax Slabs for Senior Citizens
The old tax regime provides a higher basic exemption limit for senior citizens — resident individuals aged 60 years or above but below 80 years:
| Income Tax Slabs (₹) | Income Tax Rate |
|---|---|
| Up to ₹3 lakh | Nil |
| ₹3 lakh to ₹5 lakh | 5% |
| ₹5 lakh to ₹10 lakh | 20% |
| Above ₹10 lakh | 30% |
Income Tax Slabs for Super Senior Citizens
Super senior citizens — resident individuals aged 80 years and above — get the most generous basic exemption limit under the old regime:
| Income Tax Slabs (₹) | Income Tax Rate |
|---|---|
| Up to ₹5 lakh | Nil |
| ₹5 lakh to ₹10 lakh | 20% |
| Above ₹10 lakh | 30% |
Old Regime vs New Regime: Key Deductions and Exemptions Compared
This is where the two regimes truly differ. The old tax regime rewards careful tax planning with a long list of deductions and exemptions. The new tax regime trades many of those benefits for lower slab rates and a bigger Section 87A rebate.
| Tax Benefit | Old Regime | New Regime |
|---|---|---|
| Rebate u/s 87A | ₹12,500 (income up to ₹5 lakh) | ₹60,000 (income up to ₹12 lakh) |
| Standard Deduction | ₹50,000 | ₹75,000 |
| Section 80C (PPF, ELSS, LIC, EPF, etc.) | Allowed (up to ₹1.5 lakh) | Not allowed |
| Section 80D (health insurance premium) | Allowed | Not allowed |
| HRA Exemption | Allowed | Not allowed |
| Home loan interest (self-occupied property) | Allowed (up to ₹2 lakh) | Not allowed |
| LTA (Leave Travel Allowance) | Allowed | Not allowed |
| NPS Deduction (Section 80CCD) | Fully allowed | Employer contribution only |
| Set-off of house property losses | Allowed | Not allowed |
| Section 80G (donations) | Allowed | Not allowed |
| Section 80TTA/80TTB (interest income) | Allowed | Not allowed |
Salary-Wise Tax Comparison: How Much Will You Actually Pay?
Here's a practical look at how much income tax you'd pay under each regime at different salary levels, assuming no major deductions are claimed in the old regime:
| Taxable Income | Tax (New Regime) | Tax (Old Regime) | Savings |
|---|---|---|---|
| ₹8 lakh | Nil (87A rebate) | ₹75,400 | ₹75,400 |
| ₹10 lakh | Nil (87A rebate) | ₹1,17,000 | ₹1,17,000 |
| ₹12 lakh | Nil (87A rebate) | ₹1,79,400 | ₹1,79,400 |
| ₹13 lakh | ₹78,000 | ₹2,10,600 | ₹1,32,600 |
| ₹15 lakh | ₹1,09,200 | ₹2,73,000 | ₹1,63,800 |
| ₹20 lakh | ₹2,08,000 | ₹4,29,000 | ₹2,21,000 |
| ₹25 lakh | ₹3,43,200 | ₹5,85,000 | ₹2,41,800 |
| ₹30 lakh | ₹4,99,200 | ₹7,41,000 | ₹2,41,800 |
How Zero Tax on Income Up to ₹12 Lakh Actually Works
One of the biggest advantages of the new tax regime is that income up to ₹12 lakh is effectively tax-free for most salaried taxpayers.
The Section 87A tax rebate — currently set at ₹60,000 — cancels out your entire tax liability if your total taxable income does not exceed ₹12 lakh under the new regime.
| Particulars | Amount (₹) |
|---|---|
| Gross salary | 12,75,000 |
| Less: Standard deduction | 75,000 |
| Taxable salary | 12,00,000 |
| Tax on income up to ₹4 lakh | Nil |
| Tax on ₹4 lakh to ₹8 lakh (5%) | 20,000 |
| Tax on ₹8 lakh to ₹12 lakh (10%) | 40,000 |
| Total tax before rebate | 60,000 |
| Less: Section 87A rebate | 60,000 |
| Net tax payable | Nil |
Step-by-Step Guide: How to Use the Easy Return Income Tax Calculator
Getting your income tax estimate takes less than two minutes. Follow these steps:
- Select the financial year you want to calculate for — the current or previous year.
- Choose your age group — below 60, 60–80 (senior citizen), or 80+ (super senior citizen).
- Click Continue.
- Enter your salary income — use your gross salary before deducting exemptions like HRA or LTA.
- Add other income sources — including interest income, rental income, home loan interest paid and digital asset income.
- Click Continue.
- Enter your deductions — including Section 80C, 80D, 80G, 80E and 80TTA/80TTB, wherever applicable.
- Click Calculate. You'll see your total tax liability, rebate, surcharge and cess under both regimes side by side.
Real-World Tax Calculation Example: Old vs New Regime
Let's walk through a practical example. Ms. Priya has the following income in a given financial year:
| Particulars | Old Tax Regime (₹) | New Tax Regime (₹) |
|---|---|---|
| Salary income | 15,00,000 | 15,00,000 |
| Less: Standard deduction | 50,000 | 75,000 |
| Taxable salary | 14,50,000 | 14,25,000 |
| Freelancing business income | 50,000 | 50,000 |
| Savings bank interest | 7,000 | 7,000 |
| Gross total income | 15,07,000 | 14,82,000 |
| Less: Home loan interest (Section 24b) | 1,50,000 | Nil |
| Less: 80TTA deduction | 7,000 | Nil |
| Taxable income | 13,50,000 | 14,82,000 |
| Tax payable (including 4% cess) | ₹2,26,200 | ₹1,06,392 |
Surcharge and Education Cess: What They Are and How They Apply
What Is Surcharge?
Surcharge is an additional tax levied on your income tax when your taxable income exceeds ₹50 lakh. Think of it as a tax on your tax — applicable to higher income earners. After surcharge, a 4% health and education cess is applied on the combined amount.
Here are the surcharge rates under both regimes:
| Income Level | Surcharge (Old Regime) | Surcharge (New Regime) |
|---|---|---|
| ₹50 lakh to ₹1 crore | 5% | 5% |
| ₹1 crore to ₹2 crore | 15% | 15% |
| ₹2 crore to ₹5 crore | 25% | 25% |
| Above ₹5 crore | 37% | 25% |
How New Tax Regime Slabs Have Changed Over the Years
The new tax regime has undergone significant changes since it was introduced. Here's a year-by-year look at how the new regime slab rates have evolved.
New Regime Slab Rates: FY 2023-24
| Total Income (₹) | Tax Rate |
|---|---|
| Up to ₹3 lakh | Nil |
| ₹3 lakh to ₹6 lakh | 5% |
| ₹6 lakh to ₹9 lakh | 10% |
| ₹9 lakh to ₹12 lakh | 15% |
| ₹12 lakh to ₹15 lakh | 20% |
| Above ₹15 lakh | 30% |
New Regime Slab Rates: FY 2024-25
| Total Income (₹) | Tax Rate |
|---|---|
| Up to ₹3 lakh | Nil |
| ₹3 lakh to ₹7 lakh | 5% |
| ₹7 lakh to ₹10 lakh | 10% |
| ₹10 lakh to ₹12 lakh | 15% |
| ₹12 lakh to ₹15 lakh | 20% |
| Above ₹15 lakh | 30% |
New Regime Slab Rates: FY 2025-26
| Total Income (₹) | Tax Rate |
|---|---|
| Up to ₹4 lakh | Nil |
| ₹4 lakh to ₹8 lakh | 5% |
| ₹8 lakh to ₹12 lakh | 10% |
| ₹12 lakh to ₹16 lakh | 15% |
| ₹16 lakh to ₹20 lakh | 20% |
| ₹20 lakh to ₹24 lakh | 25% |
| Above ₹24 lakh | 30% |
About the Easy Return Income Tax Calculator
The Easy Return Income Tax Calculator is a free, easy-to-use online tax calculator built to help Indian taxpayers estimate their income tax liability — updated every year in line with the latest Union Budget.
Whether you're a salaried employee, a freelancer, a senior citizen, or someone with multiple income sources, the calculator can account for salary, house property income, capital gains, business income and income from other sources.
Frequently Asked Questions About Income Tax in India
Is the new tax regime better than the old tax regime?
For many middle-class salaried taxpayers with limited tax-saving investments, the new regime may be more beneficial. If you claim large deductions such as Section 80C, home loan interest or HRA, the old regime may result in lower tax. Use the Easy Return calculator to compare both.
Can I switch between the old and new tax regime?
Yes. Salaried individuals can generally choose between regimes while filing their ITR. Taxpayers with business or professional income are subject to additional rules, including Form 10-IEA.
Is income up to ₹12 lakh tax-free under the new regime?
For income taxed at normal slab rates, the Section 87A rebate of ₹60,000 can eliminate tax liability for taxable income up to ₹12 lakh. Special-rate income may be treated differently.
What is the standard deduction under the new tax regime?
A standard deduction of ₹75,000 is available to salaried individuals and pensioners under the new tax regime.
Which deductions are allowed in the new tax regime?
The main examples include the employer's contribution to NPS under Section 80CCD(2) and certain eligible house-property provisions. Many popular deductions such as 80C, 80D, HRA and LTA are generally not available.
Can I use the Easy Return calculator with income from multiple sources?
Yes. You can include income from salary, interest, rental income, freelancing, digital assets and capital gains to estimate your combined tax liability under both regimes.
Does the Easy Return calculator compute TDS?
No. The calculator estimates your annual income-tax liability. It does not calculate Tax Deducted at Source (TDS).
How is surcharge calculated on income tax?
Enter your income and deduction details in the Easy Return calculator. It automatically estimates applicable surcharge, Section 87A rebate and 4% health and education cess.
Is filing an ITR mandatory for everyone?
ITR filing requirements depend on income and other prescribed conditions. Filing may also be useful when you need to claim a tax refund or report TDS and other income details.
How do I account for salary arrears in the tax calculator?
Include your salary arrears in the salary income field so they form part of your total taxable income. For relief under Section 89, additional tax treatment may need to be reviewed separately.