Income Tax Calculator

Compare the Old and New tax regimes to find out which is more beneficial for you.

Compare Tax Regimes

By choosing the Old Regime, you could save

₹23,920

RECOMMENDED

Old Regime

Gross Income₹12,00,000
Deductions₹4,65,000
Taxable Income₹7,35,000
Tax Payable₹61,880

New Regime

Gross Income₹12,00,000
Deductions₹50,000
Taxable Income₹11,50,000
Tax Payable₹85,800

Why the Old Regime is Recommended

For your income of ₹12,00,000, the Old Regime results in a lower tax liability. Your claimed deductions of ₹4,65,000 are significant enough to lower your taxable income to a point where the Old Regime's structure becomes more beneficial than the lower rates of the New Regime.

General Guideline

Typically, if your total deductions are relatively low compared to your income, the New Regime is more advantageous. Conversely, if you make full use of deductions like HRA, 80C (₹1.5 lakh), and home loan interest, the Old Regime often proves to be the better choice. Always use this calculator to check your specific situation.

Disclaimer: The calculation is based on AY 2024-25 tax slabs and includes a 4% cess. It's for illustrative purposes only.

Understanding Income Tax

In India, taxpayers can choose between two income tax regimes. Your choice can significantly impact your tax liability, depending on your income and the deductions you are eligible for. This calculator helps you make that choice.