Old vs New Regime Comparison
Calculate your income tax instantly for FY 2024-25. Compare both regimes, view slab-wise breakdown, and find the best tax-saving option for your salary.
Choose your tax regime and enter annual income to calculate exact tax payable including 4% Health & Education Cess. Compare both regimes to maximize savings.
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Understanding how to calculate income tax manually is crucial for every salaried employee in India. The Income Tax Act offers two regimes: the Old Regime with deductions and the New Regime with lower tax rates. This guide explains both methods step-by-step.
| Income Range (₹) | 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% |
| Income Range (₹) | Rate |
|---|---|
| 0 - 2,50,000 | 0% |
| 2,50,001 - 5,00,000 | 5% |
| 5,00,001 - 10,00,000 | 20% |
| Above 10,00,000 | 30% |
For a ₹10 lakh salary, let's compare both regimes without deductions:
The New Regime saves ₹62,400 in this case. However, if you have substantial deductions (₹3.5 lakhs+ under 80C, 80D, HRA), the Old Regime may be better.
1. Determine your gross total income (salary + other sources). 2. Subtract deductions (80C, 80D, HRA) under Old Regime. 3. Apply income tax slabs progressively. 4. Calculate 4% Health & Education Cess on tax amount. 5. Add surcharge if applicable. Our calculator automates this entire process instantly.
The New Regime is better for most employees with minimal deductions. It's the default option from FY 2023-24 with lower slab rates. However, if you have significant investments (₹4+ lakhs in 80C, NPS, HRA, home loan interest), the Old Regime may save more tax.
Health and Education Cess is 4% of your total income tax liability. It's calculated after applying tax slabs and added to your final tax payable. For example, if your tax is ₹1,00,000, you pay ₹4,000 cess, making total payable ₹1,04,000.
Salaried employees can switch regimes every financial year when filing returns. However, business/professional taxpayers (with PGBP income) must choose one regime permanently and cannot switch back to the Old Regime after opting for the New Regime.
Under New Regime: Taxable income ₹15,00,000 → Tax ₹1,87,500 → Cess ₹7,500 → Total ₹1,95,000. Under Old Regime (no deductions): Tax ₹2,62,500 → Cess ₹10,500 → Total ₹2,73,000. With ₹4+ lakh deductions, Old Regime can match or beat New Regime savings.
For senior citizens (60-80 years) under Old Regime: ₹0-3,00,000 exempt, ₹3,00,001-5,00,000 @5%, ₹5,00,001-10,00,000 @20%, above ₹10,00,000 @30%. Super seniors (80+) get ₹5,00,000 exemption. New Regime slabs remain same for all age groups.
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