Income Tax Basics
Income tax in India is charged on your taxable income using progressive slabs, meaning higher portions of income are taxed at higher rates. You can choose between the old regime (higher rates, more deductions) and the new regime (lower rates, fewer deductions).
Step-by-Step Calculation
Add Up Gross Income
Include salary, interest, and any other income for the financial year.
Subtract Deductions
Apply the standard deduction, plus deductions like 80C and 80D if you use the old regime.
Apply the Slab Rates
Apply your regime's slab rates to the taxable income, portion by portion.
Add 4% Cess
Add health and education cess of 4% to the computed tax for the final payable amount.
Compare Both Regimes Instantly
Enter your income and deductions to see which regime saves you more.
Open Income Tax Calculator →Old vs New Regime
The old regime rewards those who invest and claim deductions like 80C, 80D, and HRA. The new regime suits those who prefer simpler filing and do not claim many deductions, offering lower slab rates and a higher standard deduction. The best choice depends on your deductions, so compare both before filing.
Tax slabs and rules change each financial year. Always confirm current figures on the official income tax portal.
Frequently Asked Questions
Which regime should I choose?
If you claim significant deductions, the old regime often wins. If not, the new regime's lower rates usually help. Compare both.
What is the 87A rebate?
It makes tax zero for incomes up to a threshold (higher under the new regime), so many lower-income taxpayers pay no tax.