Compare Old vs New Tax Regime
Choosing between the old and new tax regimes can be confusing. While the new regime offers lower tax rates, it removes most exemptions and deductions. On the other hand, the old regime supports various deductions like HRA, 80C, 80D, home loan interest, and more.
Our free Old vs New Tax Regime Calculator helps you compare your tax liability under both systems based on your salary, investments, and expenses. In this post, we’ll break down the exact calculations used so you can confidently decide the better option.
🔍 Inputs Considered in the Calculator
- Annual Salary – Your total gross income from salary.
- Basic Salary – Used for calculating HRA exemption.
- Annual Rent Paid & HRA Received – For House Rent Allowance exemption under the old regime.
- Metro City Status – Affects the HRA exemption rate (50% of basic salary in metro vs 40% otherwise).
- Capital Gains – Both long-term (LTCG) and short-term (STCG).
- FD Interest Income – Taxed under “Income from Other Sources”.
- 80C Deductions – Investments like PF, LIC, ELSS, etc. (Max ₹1.5 lakhs).
- 80D Deductions – Medical insurance premiums.
- Home Loan Interest – Deductible up to ₹2 lakhs under Section 24(b).
- Education Loan Interest – Deductible under Section 80E.
- NPS Tier-1 Contribution – Additional ₹50,000 under Section 80CCD(1B).
🧮 How the Tax is Calculated
✅ Step 1: Gross Total Income
Gross Income =
Salary + LTCG + STCG + FD Interest
✅ Step 2: Deductions for Old Regime
Total Deductions =
- HRA Exemption (calculated below)
- Section 80C (Max ₹1,50,000)
- Section 80D (Health Insurance)
- Home Loan Interest (Max ₹2,00,000)
- Education Loan Interest
- NPS (Tier-1, Max ₹50,000)
🏠 HRA Exemption Formula
Minimum of the following:
- Actual HRA received
- 50% of basic salary (metro) or 40% (non-metro)
- Rent paid – 10% of basic salary
If any result is negative, it’s treated as ₹0.
✅ Step 3: Taxable Income under Old Regime
Old Taxable Income =Gross Salary – Total Deductions
✅ Step 4: Tax Calculation – Old Regime
Income slabs for FY 2024-25 (AY 2025-26):
- Up to ₹2.5L → Nil
- ₹2.5L–₹5L → 5%
- ₹5L–₹10L → 20%
- ₹10L+ → 30%
Note:
If income ≤ ₹5L after deductions, Section 87A rebate makes the tax zero.
Capital Gains & FD Tax are added on top:
- LTCG (above ₹1L) → 12.5%
- STCG (under section 111A) → 15–20% (assumed 20%)
- FD Interest → 10% TDS assumed
✅ Step 5: New Regime Calculation
Most exemptions are not allowed in the new regime.
However, a standard deduction of ₹75,000 is allowed.
Revised tax slabs under New Regime:
| Income Slab (₹) | Tax Rate |
|---|---|
| 0 – 4L | Nil |
| 4L – 8L | 5% |
| 8L – 12L | 10% |
| 12L – 16L | 15% |
| 16L – 20L | 20% |
| 20L – 24L | 25% |
| 24L + | 30 % |
In our calculator, we use simplified logic for illustration. Actual slab cutoffs may vary slightly depending on updates from CBDT.
📊 Visual Comparison with Bar Chart
Once you enter your inputs, the calculator instantly computes and visually displays:
- Tax under Old Regime
- Tax under New Regime
Helping you make a smart, informed choice in seconds!
✅ When Should You Choose the New Regime?
- You don’t claim many deductions (like HRA, 80C, 80D).
- You are a freelancer or gig worker with no structured salary.
- Your income is up to ₹7L – you get full rebate under Section 87A.
Stick with Old Regime If:
- You have significant deductions like HRA, 80C, home loan, etc.
- Your net taxable income goes below ₹5L after deductions.
- You are a salaried individual with optimized tax planning.
📌 Conclusion
With the new regime now the default from FY 2023-24, every taxpayer should evaluate both options before filing ITR. Use our tax comparison calculator to see what works best for you and maximize your tax savings!
👉 Try the calculator now on UniquePointer.com and make smarter tax decisions today.
🔒 Disclaimer & Data Privacy Assurance
Disclaimer: The tax calculations provided by this tool are for informational and estimation purposes only. The actual tax liability may vary based on your individual financial situation, applicable rules, and government updates. Please consult a qualified tax advisor or refer to the official Income Tax Department guidelines before filing your Income Tax Return (ITR).
No Data Storage: This calculator runs entirely within your browser. No personal or financial data is sent to or stored on any server. Your inputs remain completely private and are not shared with anyone.
We value your privacy. Safe calculations, every time.
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