Advisory Tool

Income Tax Calculator

Compare your income tax liabilities between New vs Old tax slabs.

Income Tax Regime Planning

Compare income tax liability between New and Old Tax Regimes under current tax slabs, standard deduction, and Section 80C.

Net Income Tax Liability Formula

          Total Tax = ( Base Slab Tax + 4% Health & Education Cess ) - Applicable Rebates
        

Computes slab-wise income tax liability under Old or New regimes, adding 4% Cess and applying Section 87A rebate where applicable.

Old vs. New Tax Regime: Key Differences

Old Regime features higher slab rates but permits 80C, 80D, HRA, and home loan deductions. New Regime offers lower slab rates with flat standard deduction.

Section 87A Tax Rebate Thresholds

Taxpayers with net taxable income up to ₹7 Lakhs pay zero tax under New Regime due to Section 87A rebate (₹5 Lakhs threshold under Old Regime).

4% Health & Education Cess Requirement

A mandatory 4% Health & Education Cess is levied on calculated base income tax liability across both tax regimes.

Frequently Asked Questions (FAQ)

What is Section 80C deduction limit?

Section 80C allows claiming deductions up to ₹1.5 Lakhs per year under the Old Tax Regime via PPF, ELSS, EPF, and NPS investments.

Is standard deduction available in the New Tax Regime?

Yes, salaried employees receive a flat ₹75,000 standard deduction under the New Tax Regime.

Can I switch between Old and New Tax Regimes every year?

Salaried individuals without business income can switch regimes annually at tax filing time.