Using the India Income Tax: Old vs New Regime
Enter gross salary and other ordinary-rate income, then supply only exemptions and deductions you have confirmed are eligible in each regime. The tool applies each standard deduction automatically, so do not include that amount again in the deduction fields.
Worked example
Use the example inputs below to reproduce this result. These are the form's starting values, not recommended targets. Changing your inputs updates your result above; this worked example stays fixed for comparison. Results are rounded for display.
Example inputs
- Tax period
- TY 2026–27
- Age at tax-year end (resident individual)
- 30
- Annual gross salary (₹)
- 1500000
- Other ordinary-rate income (₹)
- 0
- Eligible old-regime salary exemptions (₹)
- 100000
- Eligible old-regime deductions (₹)
- 150000
- Eligible new-regime deductions (₹)
- 0
Example result
- Old-regime tax incl. cess (₹)
- 179,400
- New-regime tax incl. cess (₹)
- 97,500
- Difference (old minus new) (₹)
- 81,900
- Lower modeled tax
- New regime
- Old-regime calculation
- Taxable 12,00,000; slab tax 1,72,500; rebate 0; rebate marginal relief 0; surcharge 0; surcharge marginal relief 0; cess 6,900.
- New-regime calculation
- Taxable 14,25,000; slab tax 93,750; rebate 0; rebate marginal relief 0; surcharge 0; surcharge marginal relief 0; cess 3,750.
Method and assumptions
Resident individuals; ordinary salary and other slab-rate income only. Excludes capital gains, dividends requiring special surcharge treatment, lottery/crypto, agriculture, business, foreign income, losses, AMT, arrears relief, interest/penalties and TDS credits. Standard deduction up to ₹50,000 old / ₹75,000 new. New slabs: nil to ₹4L, then 5/10/15/20/25% in ₹4L bands to ₹24L, 30% above. Old age-based exemption and 5/20/30% bands; resident rebates at ₹5L/₹12L, new rebate marginal relief, surcharge marginal relief and 4% cess. Taxable income and final tax rounded to ₹10. Deductions are user-confirmed eligible totals, not automatically allowed claims. FY2025–26 and TY2026–27 share the modeled ordinary-income rates; verify the applicable Act before filing.
Reference: incometax.gov.in — method and further reading
Match the tax year and scope
Tax estimates depend on the year, jurisdiction and definitions used in the model. Check whether an input means gross income, taxable income or an amount after a particular deduction. Keep excluded credits, other taxes and special circumstances separate. A simplified scenario can explain a relationship without reproducing the amount on an actual return.
Common question
Does the lower estimate mean I should choose that regime?
It identifies the lower modeled tax for the inputs and supported income categories. Filing eligibility, regime-election deadlines, employer contributions and unsupported income can change the practical choice. Compare the breakdown with the official estimator before filing or changing payroll instructions.