What is the difference between the New and Old Tax Regimes?

The New Tax Regime (default for FY 2023-24) offers lower, streamlined tax slabs but disallows most common deductions like those under Section 80C (EPF, PPF, Life Insurance), 80D (health insurance), and HRA. The Old Tax Regime has higher tax rates but allows you to claim these deductions to lower your taxable income. This calculator's 'Old Regime' is simplified and only includes the standard deduction.

Is the Standard Deduction included in this calculation?

Yes, this calculator automatically applies the standard deduction of ₹50,000 for salaried individuals under both the New and Old Tax Regimes, as per the rules for FY 2023-24.

What is the Health & Education Cess?

The Health and Education Cess is an additional tax levied at 4% on the calculated income tax amount. Its purpose is to fund health and education initiatives in the country. Our calculator automatically adds this cess to your final tax liability.

Why is my calculated tax zero?

Your tax is likely zero due to the tax rebate under Section 87A. Under the New Regime, if your taxable income is ₹7 lakh or less, you get a full rebate, making your tax liability nil. Under the Old Regime, this rebate applies if your taxable income is ₹5 lakh or less.

Income Tax Calculator

Estimate your income tax liability based on the latest Indian tax slabs.

Tax Calculation (FY 2023-24)

Your Gross Annual Income (₹)

Tax Regime

New

Old (Simplified)

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About the Income Tax Calculator

Understand Indian tax regimes and plan your finances for the Financial Year 2023-24 (Assessment Year 2024-25).

How to Use This Calculator

Estimating your income tax liability is a crucial part of financial planning. To use this calculator, simply enter your Gross Annual Income (your total yearly salary package before any deductions) and select the tax regime you want to calculate for. The tool will then provide an approximate breakdown of your income tax, the additional cess, and the total tax payable for the financial year.

New vs. Old Tax Regime (FY 2023-24)

For the financial year 2023-24, the Indian government offers two tax regimes for individuals to choose from. Understanding the difference is key to optimizing your tax outgo.

New Tax Regime: This is now the default tax regime. It offers lower tax rates across different income slabs but comes with a trade-off: you cannot claim most of the common deductions and exemptions like those under Section 80C (for investments in PPF, ELSS, life insurance), Section 80D (for health insurance premiums), or HRA (House Rent Allowance). A standard deduction of ₹50,000 is available for salaried individuals. It's designed for simplicity.
Old Tax Regime: This regime has higher tax rates but allows you to lower your taxable income by claiming over 70 different deductions and exemptions. It can be more beneficial for individuals who make significant investments in tax-saving instruments and have other expenses like HRA to claim. Our calculator's "Old Regime" option is simplified for quick comparison and only accounts for the standard deduction.

Frequently Asked Questions

Disclaimer

This calculator provides an estimate based on simplified tax rules for illustrative purposes only. It does not account for all possible deductions (especially for the Old Regime, which is highly individualized), surcharges on high-income earners, or specific personal circumstances. For accurate tax planning and filing, it is essential to consult with a qualified financial advisor or chartered accountant.