Understand the new tax regime, compare it with the old system, and calculate your tax instantly using our online Income Tax Calculator. Get insights into tax slabs, deductions, and which regime is best for you. Plan your taxes smartly and save more!
Income Tax Calculator
(New Tax Regime)
| Head | Amount |
|---|---|
| Gross Income | |
| Payee Type | |
| Financial Year | |
| Standard Deduction | 50000 |
| Taxable Income | 0.00 |
The Indian government introduced the new tax regime to simplify income tax calculations and provide taxpayers with an alternative to the traditional tax system. With revised tax slabs and no exemptions, the new regime offers a straightforward approach to taxation. However, many taxpayers struggle to determine whether it benefits them more than the old regime.
Effective tax planning is crucial for maximizing savings and minimizing liabilities. Understanding how much tax you owe under the new regime allows you to make informed financial decisions.
What is the New Tax Regime?
The new tax regime was introduced by the Indian government as an alternative to the existing tax system, aiming to simplify tax calculations and offer lower tax rates. Unlike the old tax regime, which allows various exemptions and deductions (such as HRA, standard deduction, and 80C benefits), the new regime follows a "low tax, no exemption" approach.
Key Features of the New Tax Regime
- Lower tax rates: The new regime offers reduced tax rates compared to the old regime.
- No exemptions or deductions: Most common exemptions like HRA, LTA, 80C, 80D, and home loan interest are not available.
- Simplified tax structure: Since exemptions are removed, tax filing becomes easier and less complicated.
- Optional choice: Taxpayers can choose between the old and new regimes based on what benefits them more.
Old Tax Regime vs. New Tax Regime – Tax Slabs Comparison
Below is a comparison of the tax slabs under both regimes:
| Income Slab (₹) | Old Tax Regime (with exemptions) | New Tax Regime (without exemptions) |
|---|---|---|
| 0 - 2.5 lakh | 0% | 0% |
| 2.5 - 5 lakh | 5% | 5% |
| 5 - 7.5 lakh | 20% | 10% |
| 7.5 - 10 lakh | 20% | 15% |
| 10 - 12.5 lakh | 30% | 20% |
| 12.5 - 15 lakh | 30% | 25% |
| Above 15 lakh | 30% | 30% |
Which Regime Should You Choose?
The best choice depends on your income structure and eligible deductions. If you claim multiple exemptions (like HRA, 80C, home loan interest), the old regime may be beneficial. However, if you prefer a lower tax rate without dealing with deductions, the new regime could be a better option.
Latest Tax Slabs for New Regime (FY 2024-25 & FY 2025-26)
The government has introduced revised tax slabs under the new tax regime for FY 2024-25 and FY 2025-26. Below is a breakdown of the latest tax rates:
New Tax Regime – Income Tax Slabs (FY 2024-25 & FY 2025-26)
| Annual Income (₹) | Tax Rate (%) |
|---|---|
| 0 - 3 lakh | 0% (No Tax) |
| 3 - 6 lakh | 5% |
| 6 - 9 lakh | 10% |
| 9 - 12 lakh | 15% |
| 12 - 15 lakh | 20% |
| Above 15 lakh | 30% |
Standard Deduction under the New Regime
- From FY 2023-24 onwards, a standard deduction of ₹50,000 is available for salaried employees and pensioners under the new tax regime.
- This deduction reduces taxable income, thereby lowering tax liability.
- For example, if your annual income is ₹10,00,000, the taxable income after the standard deduction will be ₹9,50,000, which is subject to lower tax rates.
The new tax regime makes taxation simpler with lower rates, but it removes many exemptions. To see how much tax you need to pay, use our Income Tax Calculator (New Regime).
Use the Online Income Tax Calculator (New Regime)
To simplify tax calculations under the new tax regime, we have embedded our Income Tax Calculator right here! This tool helps you instantly determine your tax liability based on your income and applicable deductions.
How to Use the Income Tax Calculator?
Follow these simple steps to compute your tax:
- Enter Your Annual Income – Input your total salary or income for the financial year.
- Select the Financial Year – Choose between FY 2024-25 or FY 2025-26 to get updated tax results.
- Include Standard Deduction – The calculator will automatically consider the ₹50,000 standard deduction if applicable.
- Review Tax Computation – Instantly see your tax liability based on the latest tax slabs.
- Check Additional Tax Components –
- Surcharge: Applied if income exceeds a certain threshold.
- Education Cess: 4% of the total tax payable.
- Tax Credits: If eligible, deductions like rebate under Section 87A are applied.
Tax Calculation Example Under New Regime
To better understand how the new tax regime works, let's look at some real-life examples for different income levels. The tax is calculated based on the latest FY 2024-25 & FY 2025-26 slabs.
Example 1: Income of ₹8 Lakh
| Income Components | Amount (₹) |
|---|---|
| Total Income | 8,00,000 |
| Standard Deduction (-) | 50,000 |
| Taxable Income | 7,50,000 |
| Tax Calculation | |
| 0% on ₹4,00,000 | 0 |
| 5% on ₹3,50,000 | 17,500 |
| Total Tax Before Cess | ₹17,500 |
| Education Cess (4%) | 700 |
| Total Tax Payable | ₹18,200 |
Example 2: Income of ₹12 Lakh
| Income Components | Amount (₹) |
|---|---|
| Total Income | 12,00,000 |
| Standard Deduction (-) | 50,000 |
| Taxable Income | 11,50,000 |
| Tax Calculation | |
| 0% on ₹4,00,000 | 0 |
| 5% on ₹4,00,000 | 20,000 |
| 10% on ₹3,50,000 | 35,000 |
| Total Tax Before Cess | ₹55,000 |
| Education Cess (4%) | 2,200 |
| Total Tax Payable | ₹57,200 |
Example 3: Income of ₹20 Lakh
| Income Components | Amount (₹) |
|---|---|
| Total Income | 20,00,000 |
| Standard Deduction (-) | 50,000 |
| Taxable Income | 19,50,000 |
| Tax Calculation | |
| 0% on ₹4,00,000 | 0 |
| 5% on ₹4,00,000 | 20,000 |
| 10% on ₹4,00,000 | 40,000 |
| 15% on ₹4,00,000 | 60,000 |
| 20% on ₹3,50,000 | 70,000 |
| Total Tax Before Cess | ₹1,90,000 |
| Education Cess (4%) | 7,600 |
| Total Tax Payable | ₹1,97,600 |
These examples illustrate how tax is computed under the new tax regime. The Income Tax Calculator can help you instantly determine your exact tax liability based on your salary and deductions.
New Regime vs. Old Regime: Which One Should You Choose?
Choosing between the new tax regime and the old tax regime depends on various factors such as exemptions, deductions, and overall tax savings. Below is a comparison to help you decide.
Key Differences Between New & Old Tax Regimes
| Factor | New Tax Regime | Old Tax Regime |
|---|---|---|
| Tax Rates | Lower rates but no deductions | Higher rates but allows deductions |
| Standard Deduction | ₹50,000 (from FY 2023-24) | ₹50,000 |
| Exemptions & Deductions | Not available (except NPS employer contribution) | Available (HRA, 80C, 80D, etc.) |
| Simplicity | Easier, fewer calculations | Complex but offers savings |
| Who Benefits? | Those without major deductions | Those with high deductions |
Tax Comparison: New Regime vs. Old Regime
| Annual Income | Tax Under Old Regime (₹) | Tax Under New Regime (₹) | Best Option |
|---|---|---|---|
| ₹8,00,000 | 41,600 (after deductions) | 18,200 | New Regime |
| ₹12,00,000 | 1,06,600 (after deductions) | 57,200 | New Regime |
| ₹20,00,000 | 3,37,200 (after deductions) | 1,97,600 | New Regime (if no deductions) |
Note: In the old regime, savings depend on exemptions like HRA, 80C (₹1.5 lakh), 80D (₹25,000), home loan benefits, etc.
Income Tax Calculator New Regime
Decision Matrix: Which Tax Regime Should You Choose?
| Scenario | Best Choice |
|---|---|
| You claim deductions of ₹2 lakh or more | Old Regime |
| You do not claim deductions | New Regime |
| You have a home loan with interest benefits | Old Regime |
| You want a simple tax process | New Regime |
| You invest in 80C (PPF, EPF, LIC, etc.) | Old Regime |
Benefits of Using an Online Tax Calculator
Using an Income Tax Calculator can simplify tax planning and help you make informed financial decisions. Here are the key benefits:
1. Saves Time & Eliminates Manual Calculations
- No need for complex tax computations.
- Instantly calculates your tax liability based on income and applicable slabs.
2. Provides Accurate Results Instantly
- Reduces errors compared to manual calculations.
- Automatically applies the latest tax rates and standard deductions.
3. Helps in Tax Planning & Decision-Making
- Compares tax liability under the new and old tax regimes.
- Assists in choosing the best tax-saving strategy.
- Helps individuals and salaried professionals plan their investments better.
Conclusion: Plan Your Taxes Smartly!
Smart tax planning is crucial for maximizing your savings and ensuring compliance with the latest tax laws. Use the Income Tax Calculator (New Regime) embedded in this article to instantly compute your tax liability and make an informed choice between the old and new tax regimes.
FAQ
What is the new tax regime in India?
The new tax regime offers lower tax rates but removes most exemptions and deductions available under the old regime.
How do I calculate my tax under the new regime?
You can use our online Income Tax Calculator to enter your salary details and get an instant tax computation.
What are the latest tax slabs for FY 2024-25 and FY 2025-26?
The new tax regime has revised slabs, with income up to ₹4 lakh tax-free and rates increasing progressively up to 30% above ₹24 lakh.
Which tax regime is better: old or new?
It depends on your financial situation. If you claim multiple deductions, the old regime might be better. Use our calculator to compare.
Is the standard deduction available under the new tax regime?
Yes, from FY 2023-24 onwards, the new regime includes a standard deduction of ₹50,000 for salaried individuals.
Does the new tax regime apply to all taxpayers?
No, it is optional. Taxpayers can choose between the old and new tax regimes when filing their returns.
Can I switch between the old and new tax regimes?
Salaried individuals can choose a different regime every year, while those with business income can switch only once.
What deductions are not available in the new tax regime?
Most deductions, including 80C, 80D, HRA, and LTA, are not available under the new tax regime.
How can I save tax under the new regime?
Since deductions are limited, focus on investing wisely and utilizing tax-saving options like the NPS and employer benefits.
Where can I find an Income Tax Calculator for the new regime?
You can use our free online Income Tax Calculator embedded in this article to compute your tax instantly.