About income tax calculator
India has two ways to calculate income tax for individuals: the old regime, which allows many deductions and exemptions, and the new regime, which has lower slab rates but fewer deductions. This calculator compares both on your numbers.
How the comparison works
- Taxable income is gross income minus the deductions allowed under each regime.
- Tax is then applied slab by slab. Each rate applies only to the part of income in that slab.
- Health and education cess is added on top of the tax.
Which regime suits whom
People who claim large deductions, such as home loan interest, Section 80C investments, HRA and health insurance, may pay less under the old regime. Those with few deductions often pay less under the new one. Compare both every year.
How to use it
Enter your gross income, then the deductions you can really claim, such as home loan interest, HRA, Section 80C investments and health insurance. Compare the tax under both regimes, and check the answer against your Form 16 or your employer's projection before choosing a regime.
Documents to keep
Rent receipts, investment proofs, insurance premium receipts and your home loan interest certificate. They are needed if your employer or the tax department asks.
