India's income tax system currently offers two regimes: the Old Regime, which allows deductions like 80C investments, HRA exemption and other exemptions but has higher slab rates, and the New Regime, which has lower slab rates but very few deductions. Which one is better depends entirely on how much you can claim in deductions — if your 80C, HRA and other exemptions add up to a large amount, the Old Regime often wins; if you have few deductions, the New Regime's lower rates usually work out cheaper.
This calculator computes tax payable under both regimes using your income and the deductions you enter, then tells you which regime results in lower tax for your specific numbers — so you don't have to manually calculate both and compare.
There's no universal answer — it depends on your specific deductions. As a rough guide, if your total deductions (80C + HRA + others) exceed roughly ₹3-3.5 lakh, the Old Regime often works out better; below that, the New Regime tends to be cheaper. Always check both using your real numbers, as this calculator does.
Salaried individuals can generally choose a different regime each financial year when filing returns. Those with business income have more restrictions on switching back and forth — check current IT department rules for your specific situation.
It covers the most common ones — 80C, HRA and a general 'other deductions' field. It doesn't cover every niche deduction (like 80D health insurance, 80E education loan interest, etc.) — for a fully precise number, add those manually to the 'Other Deductions' field or consult a tax professional.