Old vs. New Tax Regime — What Changed?
India now offers two ways to calculate income tax: the New Regime, which has lower slab rates but strips out most deductions, and the Old Regime, which has higher slab rates but allows deductions like 80C, 80D, and HRA. Since the New Regime became the default option, more taxpayers have been comparing both to see which results in a lower bill — which is exactly what this calculator does side by side.
New Regime Slabs (FY 2025-26)
| Income Slab | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
A standard deduction of ₹75,000 applies for salaried individuals and pensioners, and a Section 87A rebate brings tax to nil for taxable income up to ₹12,00,000.
Old Regime Slabs & Deductions
The Old Regime keeps its long-standing slabs: nil up to ₹2,50,000, 5% up to ₹5,00,000, 20% up to ₹10,00,000, and 30% above that (with higher exemption limits for senior and super-senior citizens). What makes it attractive for some taxpayers is the ability to claim deductions — up to ₹1,50,000 under Section 80C (EPF, PPF, ELSS, life insurance), health insurance premiums under Section 80D, and House Rent Allowance (HRA) exemption.
Which Regime Should You Choose?
Broadly, if you have few deductions to claim (little to no 80C investment, no HRA, no home loan interest), the New Regime's lower rates usually work out cheaper. If you have significant 80C investments, health insurance, and HRA, the Old Regime can still come out ahead. This calculator's side-by-side comparison is designed to answer this for your specific numbers rather than relying on a general rule of thumb.
What is GST and How Is It Calculated?
Goods and Services Tax (GST) is India's unified indirect tax, charged at 5%, 12%, 18%, or 28% depending on the category of goods or service. To add GST to a base price: GST amount = base price × rate ÷ 100. To extract GST from a price that already includes it: base price = total ÷ (1 + rate ÷ 100). The GST calculator above handles both directions instantly.