Income Tax Calculator

Income Tax Calculator FY 2024-25 — Old Regime vs New Regime

Every salaried person in India faces the same question at the start of the financial year: which tax regime saves more — old or new? The answer is different for everyone, and it depends on your income, your HRA, and how much you are investing under Section 80C. This income tax calculator for FY 2024-25 lets you calculate your liability under both regimes and compare them side by side.

Enter your annual income, select your regime, add your deductions if you are using the old regime, and get your tax payable instantly — including the 4 percent health and education cess.

New Tax Regime Slabs — FY 2024-25 (AY 2025-26)

The new regime is now the default for all taxpayers. Under it, a standard deduction of ₹75,000 applies for salaried individuals. The tax slabs after this deduction are:

Up to ₹3,00,000 — Nil
₹3,00,001 to ₹6,00,000 — 5 percent
₹6,00,001 to ₹9,00,000 — 10 percent
₹9,00,001 to ₹12,00,000 — 15 percent
₹12,00,001 to ₹15,00,000 — 20 percent
Above ₹15,00,000 — 30 percent

The Section 87A rebate eliminates tax entirely if your net taxable income (after standard deduction) does not exceed ₹7 lakh. This means anyone earning up to ₹7.75 lakh per year effectively pays zero income tax under the new regime.

Old Tax Regime — When It Still Makes Sense

The old regime taxes income at higher slab rates but allows a wide range of deductions: ₹50,000 standard deduction, up to ₹1.5 lakh under Section 80C (PPF, ELSS, EPF, life insurance premium, home loan principal), up to ₹25,000 under 80D for health insurance, HRA exemption, and home loan interest under Section 24. If your total deductions and exemptions exceed approximately ₹3.75 lakh, the old regime generally results in lower tax.

Surcharge and Cess — The Often Missed Add-Ons

After your base tax is calculated, a 4 percent health and education cess is added. For incomes above ₹50 lakh, a surcharge applies: 10 percent between ₹50 lakh and ₹1 crore, 15 percent between ₹1 crore and ₹2 crore, and 25 percent above ₹2 crore. This calculator applies these automatically so your result is the final tax payable, not just the base liability.

How to Decide Between Old and New Regime

Run both scenarios in this tax calculator before deciding. As a general rule — if you have a home loan with significant interest, fully utilise 80C, and claim HRA, the old regime is likely better. If you have few deductions or are just starting your career without major investments, the new regime’s lower slab rates typically win. The choice must be communicated to your employer at the beginning of the financial year for correct TDS deduction.

Disclaimer: Tax calculations are indicative estimates. For personalised tax planning, consult a qualified chartered accountant.