Selecting the optimal tax regime depends on your total eligible exemptions and deductions. This comparison engine calculates your tax liability under both regimes side-by-side and determines your exact break-even deduction threshold.
⚖️ Old vs New Tax Regime Calculator
Compare your tax liability under both applicable tax regimes side-by-side. Slabs, deductions, and Section 87A rebates update dynamically!
OLD TAX REGIME
You may save approximately ₹32,199 with the Old Tax Regime based on your entered deductions.
| 1. Tax Component / Particular | 2. Your Input (₹) | 3. Old Tax Regime (₹) | 4. New Tax Regime (₹) |
|---|---|---|---|
| 💼 1. EARNINGS & SALARY COMPONENTS | |||
| Basic Salary | ₹ 6,00,000 | ₹ 6,00,000 | |
| House Rent Allowance (HRA) | ₹ 1,80,000 (Exempt) | ₹ 0 (Taxable) | |
| Special Allowance | ₹ 3,60,000 | ₹ 3,60,000 | |
| Other Allowances / Bonus / Variable | ₹ 0 | ₹ 0 | |
| Gross Total Income | ₹ 12,00,000 | ₹ 10,20,000 | ₹ 12,00,000 |
| 🛡️ 2. EXEMPTIONS & DEDUCTIONS | |||
| Standard Deduction u/s 16(ia) | ₹ 50,000 | ₹ 75,000 | |
| Professional Tax u/s 16(iii) | ₹ 2,400 | ₹ 0 | |
| Section 80C (EPF, PPF, ELSS, Life Insurance) Statutory EPF contributes up to ₹36,000/yr (₹3k/mo) under revised ceiling |
₹ 1,50,000 | ₹ 0 | |
| Section 80D (Health Insurance Premium) | ₹ 25,000 | ₹ 0 | |
| Section 80CCD(1B) (National Pension Scheme - NPS) | ₹ 50,000 | ₹ 0 | |
| Home Loan Interest Section 24(b) | ₹ 0 | ₹ 0 | |
| Other Deductions (80G, 80E, etc.) | ₹ 0 | ₹ 0 | |
| Total Eligible Deductions | ₹ 3,02,400 | ₹ 2,77,400 | ₹ 75,000 |
| 📊 3. FINAL TAX SUMMARY | |||
| Net Taxable Income | — | ₹ 7,42,600 | ₹ 11,25,000 |
| Tax Slabs Calculation (Before Rebate) | — | ₹ 61,020 | ₹ 83,200 |
| Section 87A Tax Rebate | — | ₹ 0 | ₹ 0 |
| Tax After Rebate | — | ₹ 61,020 | ₹ 83,200 |
| Health & Education Cess (4%) | — | ₹ 2,441 | ₹ 3,328 |
| TOTAL TAX PAYABLE | — | ₹ 63,461 | ₹ 86,528 |
Old vs New Tax Regime Comparison Calculator: Break-Even Analysis
📋 What, Why, and Who Should Use It?
🔍 What is this Calculator?
A comparative analytical tool that evaluates tax payable under the Old Regime and New Regime, identifying the exact deduction amount where both regimes yield identical tax.
⚡ Why is it Useful?
Helps taxpayers understand whether their personal deductions (80C, 80D, HRA, home loan interest) justify staying in the Old Regime or opting for the lower slab rates of the New Regime.
👥 Who Should Use It?
Salaried taxpayers and individual investors making declarations to HR or preparing annual income tax returns.
⚙️ How It Works & Calculation Formula
Break-even deduction is calculated by setting the tax liability of the Old Regime equal to the New Regime and solving for the required deductions. If your total eligible deductions exceed the break-even threshold, the Old Regime calculates lower tax; if total deductions are below the threshold, the New Regime calculates lower tax.
💡 Assumptions & Real-World Example
Uses prevailing statutory tax slabs for FY 2025-26 and 2026-27. Assumes resident individual under 60 years. Surcharge, marginal relief, and 4% Health & Education Cess are calculated strictly by income slab.
📌 FAQs
1. What is the break-even point between Old and New tax regimes? ▼
The break-even point is the exact total of deductions and exemptions where your tax liability under both the Old and New regimes is identical. Beyond this deduction amount, the Old Regime calculates lower tax.
2. Why is the New Tax Regime default from FY 2023-24 onwards? ▼
The Government of India made the New Tax Regime (Section 115BAC) the default tax regime to simplify compliance and offer lower tax rates without requiring extensive documentation. Taxpayers can still actively opt for the Old Regime.
3. What is the tax-free limit under the New Regime? ▼
Salaried individuals with gross income up to ₹7,75,000 pay zero income tax under the New Regime (₹75,000 standard deduction + Section 87A full rebate up to ₹7,00,000 taxable income).
4. Can I claim 80D health insurance in both regimes? ▼
No. Section 80D health insurance premium deductions (up to ₹25,000 for self/family and up to ₹50,000 for senior citizen parents) are only deductible under the Old Tax Regime.
5. Does standard deduction apply automatically in both regimes? ▼
Yes. Standard deduction applies automatically to salaried employees and pensioners: ₹75,000 in the New Regime and ₹50,000 in the Old Regime.
6. Is home loan principal deduction under 80C allowed in the New Regime? ▼
No. Home loan principal repayment under Section 80C (up to ₹1.5 Lakhs) is completely disallowed under the New Regime.
7. What happens if my taxable income is ₹7,05,000 under the New Regime? ▼
Marginal relief applies so that the tax payable does not exceed the amount by which your income exceeds ₹7,00,000 (i.e., tax cannot exceed ₹5,000 plus cess).
8. Can I switch regimes if I have capital gains income? ▼
Yes. Capital gains from mutual funds or stocks are taxed at special rates (e.g., 12.5% LTCG, 20% STCG) under both regimes, and salaried individuals with capital gains can still select their preferred regime for normal income.
9. Is food allowance or LTA exempt under the New Regime? ▼
Leave Travel Allowance (LTA) and general food coupons are generally taxable under the New Regime, as almost all perquisite exemptions have been eliminated.
10. How do employer contributions to EPF get treated? ▼
Employer contributions to EPF, NPS, and superannuation funds exceeding ₹7,50,000 in aggregate per financial year are treated as taxable perquisites in both regimes.
