Tax Saving Calculator – Find Which Regime Saves You More
The choice between old and new tax regime is one of the most important tax decisions every salaried professional faces. The old regime offers more deductions (80C, 80D, HRA, home loan interest) but higher slab rates. The new regime offers lower slab rates but fewer deductions.
This free calculator compares your tax liability under both regimes based on your income and deductions – so you can make an informed choice and declare the right regime to your employer.
Old vs New Regime – Key Differences
The new regime (FY 2024-25) offers lower slab rates and a standard deduction of ₹75,000 – but removes most deductions including 80C, 80D, HRA and home loan interest. The old regime retains all deductions but has higher slab rates. If your total deductions exceed approximately ₹3.75 lakh (for income above ₹15 lakh), the old regime typically saves more.
Tax Saving Tips
Maximise 80C First
The ₹1.5 lakh 80C deduction is the largest single tax-saving provision. EPF contributions count – check how much is already covered and fill the balance with ELSS SIPs, PPF or home loan principal.
Do Not Miss 80CCD(1B)
An additional ₹50,000 deduction through NPS contributions – completely independent of the ₹1.5 lakh 80C limit. At 30% slab this saves ₹15,600 per year.
Frequently Asked Questions
When should I declare my tax regime?
Salaried employees must declare preferred regime to their employer at the start of the financial year (April) for TDS purposes. They can change when filing the actual ITR (until July 31st). If you do not declare, employer defaults to new regime.
Is there any income level where new regime is always better?
For incomes below ₹7 lakh, no tax is payable under new regime due to Section 87A rebate. Between ₹7-12 lakh with limited deductions, new regime is often better. Above ₹15 lakh with full deductions, old regime almost always wins.
What deductions are still available under the new regime?
Standard deduction (₹75,000), employer NPS contribution (80CCD(2)) and a few specific deductions remain. Most popular deductions – 80C, 80D, HRA, home loan interest – are not available in the new regime.