Income Tax Estimator
Quickly estimate your tax liability under the Old vs New Tax Regimes.
* Note: Deductions are only applicable for the Old Regime.
New Regime Tax
₹ 81,900
RecommendedOld Regime Tax
₹ 117,000
Tax planning in India has become a game of choices. The Union Budget 2025 has cemented the New Tax Regime as the default option, aggressively pushing it with lower slab rates and higher rebates. However, the Old Tax Regime still exists for those who have heavy investments in tax-saving instruments.
⚔️ The Great Debate: Old vs New Regime
New Regime (Default)
- ✅ Lower tax slab rates
- ✅ No paperwork/proofs required
- ✅ Tax-free up to ₹7 Lakhs (Rebate u/s 87A)
- ❌ No deductions (No HRA, 80C, 80D, LTA)
Old Regime
- ✅ Keeps all deductions (HRA, Home Loan, 80C)
- ✅ Ideal for those with Home Loans
- ❌ Higher tax slab rates
- ❌ Complex compliance & proof submission
Who should choose the Old Regime?
Mathematically, you should stick to the Old Regime ONLY IF your total eligible deductions exceed roughly ₹3.75 Lakhs. This threshold is known as the "Breakeven Point".
Frequently Asked Questions
Is income up to 7 Lakhs tax-free?
Yes. Under the New Tax Regime, if your net taxable income is ≤ ₹7 Lakhs, you get a full rebate u/s 87A, making your tax liability zero.
Can I switch regimes every year?
Salaried individuals can switch between Old and New regimes every year based on what benefits them. However, Business/Professional income earners can only switch back to the Old Regime <strong>once</strong> in their lifetime.