Old vs New Tax Regime Calculator — Pick the Lower Liability
Compare tax liability under both regimes for FY 2025-26 and pick whichever saves you more.
Quick Answer
Indian taxpayers can choose between the old regime (with exemptions and deductions) or the new regime under Section 115BAC (lower slab rates, fewer deductions). The choice depends on your specific deductions — typically the old regime wins if your 80C + 80D + HRA + housing-loan interest combined exceed roughly ₹4-5 lakh. Otherwise the new regime usually saves more.
What the Old vs New Regime calculator computes
- Total tax under the old regime (including all eligible deductions)
- Total tax under the new regime (Section 115BAC slabs)
- Net savings by switching regimes
- Break-even deduction amount where both regimes give the same liability
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Income Tax sections this calculator implements
View the exact bare-act mapping (old ITA 1961 → new DTC 2025) for each section used.
Tax on income of individuals and Hindu undivided family (New Tax Regime)
→ DTC 2025: Sec 117
Deduction for LIC, PPF, EPF (Under Old Tax Regime)
→ DTC 2025: Sec 123
Deduction in respect of health insurance premia
→ DTC 2025: Sec 126
House Rent Allowance (HRA)
→ DTC 2025: Sec 12
Deductions from Income from House Property
→ DTC 2025: Sec 27
Frequently asked
Can I switch between old and new regime every year?
Salaried individuals can switch every year. Business and professional income taxpayers can switch only once in their lifetime (with rare exceptions).
Which regime is better for a salary of ₹15 lakh?
It depends on deductions. If you fully use 80C (₹1.5L) + 80D (₹25K) + HRA + standard deduction, the old regime often wins. If you have minimal deductions, the new regime typically saves more. Use the calculator with your actual numbers.
Is the new regime mandatory from FY 2023-24?
No. The new regime is the default, but you can opt out and continue with the old regime each year by indicating it in your ITR or to your employer.
Other free tax calculators
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Compute the tax-free portion of your House Rent Allowance under the old tax regime.
TDS Calculator
Calculate TDS on salary, professional fees, rent, contractor payments, and commission under the new TDS sections of Income Tax Act 2025.
Capital Gains
Calculate long-term and short-term capital gains tax on shares, mutual funds, property, and gold under current tax rules.
Section 80C
Plan your ₹1.5 lakh Section 80C investment across LIC, PPF, ELSS, EPF, home loan principal, and more.
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