Entrovix AI

Income Tax Calculator — Old vs New Regime

Both regimes side by side, and the number that actually decides between them: how much you need in deductions before the old regime becomes cheaper.

Runs in your browser — nothing is uploaded

Income and deductions
₹
₹

80C, 80D, home-loan interest, NPS — old regime only

What the standard deduction does

Both regimes give it automatically — ₹75,000 under the new regime, ₹50,000 under the old — so there is no need to include it above.

New regime

₹1,30,000

8.67% of gross income

Old regime

₹2,10,600

14.04% of gross income

The new regime saves you ₹80,600 a year

You would need ₹4,08,333 in deductions for the old regime to break even — ₹2,58,333 more than the ₹1,50,000 you have entered. Below that line the new regime is simply cheaper.
New regimeOld regime
Deductions applied₹75,000₹2,00,000
Taxable income₹14,25,000₹13,00,000
Tax on slabs₹1,25,000₹2,02,500
Section 87A rebate− ₹0− ₹0
Surcharge₹0₹0
Cess (4%)₹5,000₹8,100
Total tax₹1,30,000₹2,10,600

Check the year's rates before you file

These are the FY 2024-25 slabs. Rates, the standard deduction and the 87A rebate all move most budgets — treat this as a planning figure, not a return.
Why use it

Built to be genuinely useful

The break-even deduction

The exact deduction figure at which the old regime overtakes the new. Below it, the new regime always wins.

Both regimes at once

Slab-by-slab tax, 87A rebate, surcharge and cess for each, computed on the same income.

Surcharge included

High incomes attract 10% to 37% surcharge, capped at 25% under the new regime. Most calculators skip it.

Nothing is uploaded

Everything runs in your browser, so your figures never reach a server.

How it works

Three steps

  1. 1

    Enter your gross annual income.

  2. 2

    Enter the deductions you can genuinely claim — 80C, 80D, home-loan interest, NPS.

  3. 3

    Read which regime wins and by how much, and how far your deductions are from the break-even point.

Which regime is better has no fixed answer

It depends entirely on how much you can deduct, and that is personal. Somebody with a home loan, a full 80C, health insurance for their parents and an NPS contribution is in a completely different position from somebody renting with no investments, on identical salaries.

So a calculator that shows you one regime's tax is not much use, and one that shows both still leaves you guessing whether pushing your 80C higher would change the answer. The break-even figure closes that gap: it is the deduction total at which the two regimes cost exactly the same. Claim more than that and the old regime is cheaper; claim less and it is not.

It is worked out by bisection rather than a formula, because the slab boundaries, the 87A rebate cliff and the surcharge steps make the difference between the two regimes non-linear. There is no closed-form answer to solve.

What each regime actually gives you

The new regime has wider slabs, a lower entry rate and a ₹75,000 standard deduction, but disallows almost everything else — no 80C, no 80D, no HRA exemption, no home-loan interest on a self-occupied property. Its surcharge is also capped at 25% rather than 37%.

The old regime has narrower slabs and a ₹50,000 standard deduction, but allows the full set of deductions and exemptions. It rewards people who have structured their finances around them.

Neither is a permanent choice for salaried taxpayers — you can switch each year. Business income is more restricted, and switching back can be a one-time option.

The 87A rebate is a cliff, not a slope

Under the new regime, taxable income up to ₹7 lakh attracts no tax at all, because the 87A rebate wipes out the liability. One rupee over the threshold and the rebate is gone entirely, so a small rise in income can cost far more than it earns.

Marginal relief exists to soften this near the boundary, but the shape of the thing is worth knowing if you are close to it — a bonus that pushes you across the line may be worth negotiating into the next financial year.

FAQ

Questions people ask

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