Income Tax Calculator —
Old vs New Regime Comparison

Generally: New Regime wins if your deductions are low. Old Regime wins if you have high deductions (HRA, home loan interest, 80C). The break-even point varies by income. At ₹12 lakh salary: if you can claim deductions above ₹3.75 lakh, Old Regime saves tax. Below ₹3.75 lakh in deductions, New Regime is better. Use this calculator to find your personal break-even based on your actual deductions.

Old Regime key deductions: Section 80C (₹1.5L) — ELSS, PPF, EPF, NSC, LIC, home loan principal. Section 80D — health insurance premium (₹25K self, ₹25K parents). Section 24(b) — home loan interest (₹2L). HRA — house rent allowance (40–50% of basic). Section 80CCD(1B) — NPS extra ₹50K. Standard Deduction — ₹50K for salaried. Section 80TTA/TTB — savings interest (₹10K/₹50K senior citizens). LTA — leave travel allowance (2 journeys in 4 years).

Section 87A provides a full tax rebate if your net taxable income is below a threshold: Old Regime — rebate up to ₹12,500 if taxable income ≤ ₹5 lakh (meaning zero tax). New Regime — rebate up to ₹25,000 if taxable income ≤ ₹7 lakh (zero tax). This means: if your taxable income after deductions (Old) or gross income (New) is within these limits, you pay zero income tax. This is a crucial consideration for optimising your tax filing.

For salaried employees: Yes, you can switch between Old and New Regime every financial year when filing ITR. Inform your employer at the start of the year for TDS purposes; if you don't inform them, they default to New Regime. For business income taxpayers: You can only switch once — after switching to Old Regime, you cannot go back to New Regime (with exceptions). File Form 10-IE before your ITR due date to opt for the Old Regime for that year.