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New vs Old Tax Regime
Enter your income and deductions once. We work out the tax under both regimes and show which one is lower.
New regime is better for you₹0You save ₹1,11,800 compared with the old regime.
- Old regime tax
- ₹1,11,800
- New regime tax
- ₹0
- Effective rate (old)
- 9.3%
- Effective rate (new)
- 0.0%
| Old regime | New regime | |
|---|---|---|
| Gross income | ₹12,00,000 | ₹12,00,000 |
| Standard deduction | ₹50,000 | ₹75,000 |
| Other deductions | ₹1,75,000 | ₹0 |
| Taxable income | ₹9,75,000 | ₹11,25,000 |
| Tax on slabs | ₹1,07,500 | ₹52,500 |
| Rebate 87A | ₹0 | ₹52,500 |
| Surcharge | ₹0 | ₹0 |
| Cess 4% | ₹4,300 | ₹0 |
| Total tax | ₹1,11,800 | ₹0 |
Slab-wise breakdown
| Slab | Rate | Income | Tax |
|---|---|---|---|
| Up to 2.5L | 0% | ₹2,50,000 | ₹0 |
| 2.5L to 5L | 5% | ₹2,50,000 | ₹12,500 |
| 5L to 10L | 20% | ₹4,75,000 | ₹95,000 |
| Tax on slabs | ₹1,07,500 |
| Slab | Rate | Income | Tax |
|---|---|---|---|
| Up to 4L | 0% | ₹4,00,000 | ₹0 |
| 4L to 8L | 5% | ₹4,00,000 | ₹20,000 |
| 8L to 12L | 10% | ₹3,25,000 | ₹32,500 |
| Tax on slabs | ₹52,500 |
- Monthly tax (better regime)₹0
The new regime is the default. To use the old regime with business income, Form 10-IEA has to be filed before the return.
How it is calculated
- Gross income = salary plus other income. The new regime allows only the standard deduction; the old regime also allows 80C, 80D, HRA, home-loan interest, NPS and the other deductions you enter (each capped at its legal limit).
- Taxable income is rounded to the nearest 10 and run through the slabs of each regime (the old-regime basic exemption depends on your age).
- Section 87A rebate is applied: new regime, tax is nil up to 12 lakh taxable with marginal relief just above it; old regime, up to 12,500 when taxable income is within 5 lakh.
- Surcharge is added above 50 lakh (with marginal relief) and 4% health and education cess on the total.
- The regime with the lower total is marked, with the saving. Special-rate income (capital gains, lottery) and some rarer deductions are not covered.
Indicative only. Rules change every year; we confirm before filing.
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