What is Income Tax?
India offers two parallel personal tax regimes. The New Regime has lower slab rates but disallows most deductions; the Old Regime keeps deductions like 80C, 80D and HRA but uses higher slab rates. You can pick whichever gives lower tax each year (salaried taxpayers).
Formula
New Regime taxable income = Income − ₹75,000 (std. deduction) Old Regime taxable income = Income − ₹50,000 − Deductions (80C, 80D, HRA…) Tax = sum of slab-rate × slab-width across applicable slabs Final liability = Tax × 1.04 (4% health & education cess) Section 87A rebate makes tax zero when taxable income is below ₹7,00,000 (New) or ₹5,00,000 (Old).
How to use this calculator
Enter your annual income, age bracket, and total deductions you'd claim under the Old Regime (80C + 80D + HRA exemption etc.). The card on the left ("Lower") is the regime that costs you less tax for the inputs provided. Always cross-check against the current Finance Act slabs before filing.