TAX CALCULATOR
Old regime or new? Run both.
The answer depends entirely on what you can actually claim. This computes both, slab by slab, so the comparison is on your numbers rather than a rule of thumb.
Enter your details
Fields are pre-filled with typical values — type your own or drag the sliders, and everything recalculates instantly. Nothing is sent to a server.
Section 80C, 80D and similar. Applies to the old regime only.
Calculated on FY 2025-26 statutory rates. Indicative only — confirm against current notifications before filing.
Total income tax payable
₹0
Taxable income
₹11,25,000
Monthly TDS
₹0
Effective tax rate
0%
The new regime does not allow most deductions, so the amount entered has been ignored.
Annual salary split under the new regime
Full breakdown
Step-by-step calculation
HOW IT WORKS
The formula used
The computation runs in four steps, and differs between regimes mainly in what may be deducted.
Gross − standard deduction − eligible deductionsSlab rates applied progressively to taxable incomeApplied where taxable income is within the rebate threshold(Tax after rebate) + 4% health and education cessUNDERSTANDING IT
About the income tax calculator
India operates two parallel personal income tax regimes. The new regime offers lower slab rates but disallows almost every exemption and deduction. The old regime keeps higher rates but permits house rent allowance exemption, section 80C investments, health insurance premiums and more.
There is no universally better option. For someone with a large home loan, substantial 80C investments and significant rent, the old regime frequently produces a lower tax outgo. For someone with few deductions, the new regime almost always wins.
Both regimes allow a standard deduction against salary income, and both apply a rebate under section 87A that can eliminate tax entirely for lower incomes. Health and education cess at 4% applies on top in both cases.
Worked example
Take an annual gross salary of ₹12,00,000 under the new regime.
Standard deduction reduces taxable income to ₹11,25,000. Slab rates are applied progressively: nil on the first band, 5% on the next, and 10% on the portion above. The section 87A rebate applies where taxable income falls within the threshold. Health and education cess of 4% is added to the tax after rebate, and the total is divided by twelve for monthly TDS.
WHY IT HELPS
What this calculator is good for
Compare regimes on your numbers
Switch regimes and watch the total change rather than relying on a rule of thumb.
See the slab-wise working
Every band is shown, so the total is explainable rather than asserted.
Plan monthly TDS
Annual tax divided across twelve months is what will actually leave your salary.
WATCH OUT
Common mistakes
These are the errors that most often produce a wrong number.
Assuming the new regime is always better without computing the old regime with actual deductions.
Claiming house rent allowance exemption under the new regime, where it is not available.
Forgetting the 4% health and education cess when estimating tax.
Declaring investments at the start of the year and not submitting proofs before the cut-off.
HR TIPS
Practical guidance
Compute before electing
Run both regimes with your real deductions before making the annual election.
Submit proofs on time
A missed proof deadline means the deduction is disallowed and March TDS spikes.
Re-check after a revision
A salary increase or bonus changes projected income and therefore monthly TDS.
QUESTIONS
Income Tax Calculator — frequently asked
It depends on your deductions. If your combined house rent allowance exemption, section 80C investments and other deductions are substantial, the old regime may produce lower tax. With few deductions, the new regime is usually better. Compute both before electing.
A rebate that reduces or eliminates tax where taxable income falls within a prescribed threshold. The threshold and maximum rebate differ between the two regimes.
Yes, a standard deduction against salary income is available under both regimes, though the amount differs.
The employer projects your annual taxable income, computes the tax due under your elected regime, subtracts tax already deducted, and spreads the balance across the remaining months of the financial year.
Results are indicative and computed on FY 2025-26statutory rates using conventional salary-structure assumptions. Your actual figures depend on your employer’s structure, your state and your declarations. Confirm against current notifications before relying on these numbers for filing.
Run this on real payroll, not a calculator
Stop calculating payroll in a spreadsheet. BizzField Payroll runs the whole cycle, applies every statutory rule and files what regulators expect.