About Income Tax Regimes in India
The Income Tax Act of India offers two tax regimes: the old regime with lower rates but more deductions, and the new regime with higher rates but simpler structure and fewer deductions.
Old Regime Tax Slabs (FY 2023-24)
- Up to ₹2.5 lakh: Nil
- ₹2.5 lakh to ₹5 lakh: 5%
- ₹5 lakh to ₹10 lakh: 20%
- Above ₹10 lakh: 30%
New Regime Tax Slabs (FY 2023-24)
- Up to ₹3 lakh: Nil
- ₹3 lakh to ₹6 lakh: 5%
- ₹6 lakh to ₹9 lakh: 10%
- ₹9 lakh to ₹12 lakh: 15%
- ₹12 lakh to ₹15 lakh: 20%
- Above ₹15 lakh: 30%
Plus 4% Health and Education Cess on total tax.
Frequently Asked Questions
What is the difference between old and new tax regimes?
The old regime has lower tax rates but fewer deductions, while the new regime has higher rates but more exemptions and simpler calculations.
Which tax regime is better for me?
It depends on your income and deductions. Use this calculator to compare and see which saves you more tax.
Are there any deductions in the new regime?
The new regime has standard deduction of ₹50,000 and deductions for employer NPS, but no HRA, LTA, or other old regime deductions.
What is the cess rate?
Health and Education Cess is 4% on the total tax amount.
Note: This calculator provides estimates for income tax calculation comparing old and new tax regimes. Actual tax liability may vary based on your deductions, exemptions, rebates, surcharges, and cess. Consult a tax advisor for accurate tax planning and regime selection. Use our
HRA Calculator and
Section 80D Calculator for detailed deduction calculations.