Income Tax Calculator India: Old vs New Regime
Calculate exactly which tax regime saves you more money based on standard deductions and rebates.
Income & Deductions
Standard deduction of ₹50k (Old) / ₹75k (New) is automatically applied.
New Regime
₹0
-₹0 / month
Includes ₹75k Std. Ded.
Old Regime
₹1,11,800
-₹9,317 / month
Includes exemptions
What is the Income Tax Calculator?
The KagazKit Income Tax Calculator helps Indian taxpayers compare their tax liability under both the Old Tax Regime and the New Tax Regime for the current financial year. Making the right choice between these two regimes can save you tens of thousands of rupees annually. Our calculator factors in your gross salary, Section 80C investments (PPF, ELSS, insurance), Section 80D health insurance deductions, HRA exemptions, and home loan interest — then instantly shows which regime results in lower taxes with a clear rupee-value savings figure.
How to Use This Tool
- 1Enter your gross annual salary — Input your total Cost to Company (CTC) or gross annual income before any deductions.
- 2Add your deductions — Enter your Section 80C investments, Section 80D health insurance premiums, HRA exemption amount, and home loan interest if applicable.
- 3View instant comparison — The calculator automatically computes your tax under both regimes, applies standard deductions (₹50K old, ₹75K new), and shows the 87A rebate where applicable.
- 4See the recommendation — A clear banner shows which regime saves you more money, with the exact rupee savings amount highlighted.
Why Use This Tool?
- ✓Side-by-side comparison of Old vs New Tax Regime
- ✓Automatically applies standard deduction and Section 87A rebate
- ✓Supports all major deductions: 80C, 80D, HRA, Home Loan
- ✓Real-time calculation as you adjust inputs
- ✓Shows monthly tax impact alongside annual figures
- ✓Completely private — no financial data leaves your device
Common Use Cases
- Salaried employees choosing between Old and New regime before filing ITR to maximize their take-home pay.
- HR professionals helping employees understand their optimal tax regime during the declaration period.
- Freelancers and consultants estimating advance tax liability for quarterly payments.
- Recent graduates comparing how different salary packages translate to actual in-hand income after tax.
Frequently Asked Questions
What is the difference between Old and New Tax Regime?
The Old Regime allows you to claim deductions like 80C, 80D, HRA, etc., which reduces your taxable income but has higher tax rates. The New Regime offers lower tax rates and a higher standard deduction (₹75k) but does not allow most Chapter VI-A deductions. The right choice depends on your specific deduction amounts.
Which regime is better for most people?
If you have significant investments (like EPF, ELSS, PPF, Insurance premiums) exceeding ₹3-4 lakhs combined, and pay home loan interest or receive HRA, the Old Regime often saves more. For those with fewer deductions, the New Regime is generally better because of its lower slab rates and higher standard deduction.
What is the Section 87A rebate?
Under Section 87A, if your taxable income is below a certain threshold, the government gives you a tax rebate. In the New Regime (FY 2024-25), it makes income up to ₹12.75 lakh effectively tax-free. In the Old Regime, it applies up to ₹5 lakh taxable income.
Does this calculator include cess?
Yes. The calculator automatically adds the mandatory 4% Health and Education Cess on the computed tax amount, giving you the final accurate tax liability figure.
Is my salary data sent to any server?
No. All tax calculations run 100% locally in your browser using JavaScript. Your income, deduction amounts, and tax results are never transmitted to or stored on any server. Your financial data stays completely private.