Quick Summary
This calculator compares estimated income tax under old and new regimes for Indian salaried employees. Use it during offer evaluation, tax-proof planning, and annual regime selection.
Tax Regime Comparison Tool
What Is the Difference Between Old and New Regime?
The new regime offers lower slab rates with fewer deductions, while the old regime allows common deductions such as Section 80C investments, HRA exemption, and home loan interest. The better option depends on your eligible deductions and salary structure. Employees with limited deductions may prefer the new regime for simplicity, while those with substantial deductions can reduce tax meaningfully under the old regime.
Your regime choice affects monthly in-hand salary, annual tax payout, and cash-flow predictability. Therefore, this should be reviewed every financial year instead of using last year’s assumption.
How This Calculator Works
Input annual income and old-regime deductions. The tool estimates tax for both regimes using slab logic and standard deduction assumptions configured in calculator logic. It then displays which regime has lower estimated tax and the approximate savings gap.
Important: final payroll tax can vary due to surcharge, cess treatment, employer declarations, variable bonus timing, and state-specific professional tax.
Example Comparison Table
| Annual Income | Deductions (Old) | Indicative Better Regime |
|---|---|---|
| ₹9,00,000 | ₹1,50,000 | New / Similar |
| ₹14,00,000 | ₹3,00,000 | Often Old |
| ₹20,00,000 | ₹4,50,000 | Case-specific |
Use this page for quick estimates, and use the salary comparison hub for salary-band break-even analysis.
Common Regime Selection Mistakes
- Choosing regime without entering actual deductions.
- Ignoring HRA and home-loan effects under old regime.
- Assuming one regime is always better for every salary level.
- Failing to re-check after bonus or salary revisions.
Frequently Asked Questions
Which regime is better for zero deductions?
In many cases, the new regime becomes more favorable for low-deduction profiles.
Can the better regime change each year?
Yes. Salary changes and deduction patterns can alter the outcome every year.
Should I compare before submitting investment proofs?
Yes, compare early and recheck near year-end with actual values.