What This Calculator Estimates
Indian income tax, administered by the Income Tax Department, offers taxpayers a choice between the old tax regime (with various exemptions and deductions like HRA and Section 80C investments) and the new tax regime (generally lower rates but with fewer deductions), both using progressive slabs. Because your effective tax burden depends heavily on which regime you choose and what deductions you claim, this calculator uses an editable rate so you can model either scenario based on your specific circumstances.
How to Use This Calculator
- Enter annual income in INR.
- Enter any deductions you want reflected.
- Enter an estimated effective tax rate.
- Click Estimate Income Tax.
- Review the estimated taxable income and tax.
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Tips for a More Accurate Estimate
- Compare both the old and new regime to see which results in lower tax for your situation.
- Gather your eligible deductions (80C, HRA, home loan interest, etc.) if using the old regime.
- Check the current fiscal year's slabs, since they're revised through the Union Budget.
- Use the Income Tax Department's official e-filing portal for precise, filing-accurate calculations.
- Revisit your regime choice each year if your financial situation changes significantly.
Frequently Asked Questions
What's the difference between the old and new tax regimes in India?
The old regime allows various exemptions and deductions (like HRA, Section 80C investments, and home loan interest) but has higher slab rates, while the new regime offers lower slab rates but eliminates most deductions — you can generally choose whichever benefits you more.
Can I switch between tax regimes each year?
Salaried individuals can generally choose their preferred regime each financial year when filing, though there are some restrictions for those with business income — check current Income Tax Department rules.
Does this calculator apply deductions automatically?
No, factor in your applicable deductions (if using the old regime) before entering your taxable income, or adjust the rate to reflect your effective burden.
How often are India's tax slabs revised?
Slabs are typically revised through the annual Union Budget, so check for updates each fiscal year.
Where can I confirm current official tax slabs?
The Income Tax Department of India publishes current slab tables for both regimes on its official website (incometax.gov.in).
Last updated: May 11, 2026