Income Tax Calculator – Compare Old vs New Tax Regime

The PlanMyReturns Income Tax Calculator helps you calculate your exact income tax liability and instantly compare Old vs New Tax Regime for the selected financial year.

Instead of guessing or manually calculating slabs, this calculator clearly shows:

• Tax payable under both regimes
• Which regime saves you more tax
• How deductions and exemptions impact your tax
• Net income vs tax breakup

It is designed for salary earners, professionals, and individuals with multiple income sources.

What Is Income Tax in India?

Income tax is a direct tax levied by the Government of India on income earned by individuals during a financial year.

Income can include:

• Salary income
• Business or professional income
• Rental income
• Interest and other income
• Capital gains

Tax is calculated based on:

• Applicable tax slabs
• Age category
• Chosen tax regime
• Eligible deductions and exemptions

Financial Years Supported in This Calculator

This calculator supports the latest and most searched tax years:

• FY 2024-25 (AY 2025-26)
• FY 2025-26 (AY 2026-27)

Slabs, standard deduction, rebate, and cess are applied as per the selected year.

Old vs New Tax Regime Explained

Choosing the right tax regime can save thousands to lakhs every year.

This calculator automatically compares both regimes for you.

New Tax Regime (Default)

Under the New Tax Regime:

• Lower slab rates
• Very limited deductions
• Standard deduction applicable
• Best for people with fewer tax-saving investments

This calculator applies:

• Updated slab rates for selected FY
• Standard deduction
• Section 87A rebate where applicable
• 4% health and education cess

Old Tax Regime

Under the Old Tax Regime:

• Higher slab rates
• Allows multiple deductions and exemptions

This calculator supports major deductions including:

• Standard deduction
• HRA exemption
• Section 80C (PPF, LIC, ELSS, etc)
• Section 80D (medical insurance)
• Section 80CCD(1B) NPS deduction
• Home loan interest (Section 24b)

This regime is usually better for people who actively invest in tax-saving instruments.

What This Income Tax Calculator Shows You

Once you click Calculate, you get:

• Total taxable income
• Income tax under New Regime
• Income tax under Old Regime
• Which regime is better for you
• Exact tax savings amount
• Effective tax rate
• Visual chart of tax vs net income
• Complete calculation breakdown

All results are displayed instantly.

Inputs Used in the Calculator

The calculator uses the following inputs:

• Financial Year
• Age category (below 60, senior, super senior)
• Gross annual salary
• Other income
• HRA exemption
• Section 80C deductions
• Section 80D deductions
• Home loan interest (24b)
• NPS deduction (80CCD 1B)
• Capital gains (informational)

Each input directly impacts slab calculation and deductions.

How Income Tax Is Calculated

1. Gross income is calculated
2. Applicable deductions are applied
3. Net taxable income is derived
4. Slab-wise tax is calculated
5. Rebate under Section 87A is applied (if eligible)
6. Health and education cess at 4% is added
7. Final tax payable is displayed

Both regimes follow this logic with different rules.

Tax Calculation Example

Suppose an individual earns ₹12,00,000 per year and claims ₹1,50,000 under Section 80C and ₹25,000 under Section 80D.

• Under New Regime, fewer deductions apply, leading to higher taxable income
• Under Old Regime, deductions reduce taxable income significantly

The calculator automatically:

• Computes tax under both regimes
• Shows which option saves more
• Displays the exact savings amount

This is what most users search for before filing returns.

Why This Calculator Is More Accurate Than Manual Calculation

• Uses updated slab rules
• Applies correct rebate limits
• Handles age-based exemptions
• Includes cess automatically
• Avoids common calculation mistakes
• Works for multiple income components

How to Use the Income Tax Calculator

1. Select financial year
2. Select age category
3. Choose preferred tax regime
4. Enter gross salary and other income
5. Add deductions and exemptions
6. Click Calculate

You can:

• Share the tax plan
• Download CSV
• Export a visual image

Who Should Use This Calculator

• Salaried employees
• Professionals and consultants
• People comparing Old vs New regime
• Individuals planning tax-saving investments
• Anyone filing income tax returns in India

frequently asked questions