What This Calculator Estimates
India's new income tax regime, introduced as an alternative to the traditional (old) regime, offers lower progressive slab rates but removes most common deductions and exemptions such as HRA, Section 80C investments, and home loan interest benefits. It has become the default regime for many taxpayers unless they actively opt for the old regime, so understanding which one actually saves you more tax depends on how many deductions you would otherwise claim.
How to Use This Calculator
- Enter annual income in INR.
- Enter any reductions you want to model.
- Enter an estimated effective tax rate.
- Click Estimate New Regime Tax.
- Verify current official rules before relying on the result.
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Tips for a More Accurate Estimate
- List out all deductions you'd claim under the old regime before comparing to the new regime.
- Remember the new regime generally has lower rates but far fewer deductions available.
- Check whether the new regime is the default for your filer category this fiscal year.
- Recheck slab thresholds each year, since they're revised through the Union Budget.
- Use the Income Tax Department's official tools for a filing-accurate comparison.
Frequently Asked Questions
Is the new regime automatically applied in India?
The new regime is generally the default option for many taxpayer categories unless you actively elect the old regime when filing — check current Income Tax Department rules for your specific filer type.
Why would someone choose the new regime over the old one?
If you don't have significant deductions to claim (like HRA, 80C investments, or home loan interest), the new regime's lower slab rates can result in less overall tax compared to the old regime.
Can salaried employees switch regimes each year?
Salaried individuals can generally choose their preferred regime each financial year when filing, though the process and any restrictions should be confirmed with current Income Tax Department guidance.
Does this calculator apply new regime slabs automatically?
No, enter the rate applicable to the new regime's current slab structure for your income level to get an accurate estimate.
Where can I compare old vs new regime for my situation?
The Income Tax Department's official e-filing portal often provides a comparison tool, and a tax advisor can help model both scenarios against your specific deductions.
Last updated: May 11, 2026