Choosing between the old and new tax regime is worth real money, and the right answer depends entirely on your deductions. This shows your actual tax both ways for FY 2025-26.
What this tool does
You enter your income and deductions; it computes tax under both the old and new regimes side by side and shows which is cheaper for you.
Who it's for
Salaried earners, professionals, and small-business owners in India deciding which regime to elect.
How to use it — step by step
- Enter your income. Salary, business, or professional income.
- Enter deductions. 80C, 80D, HRA, home-loan interest, and so on.
- Compare regimes. Old vs new, side by side.
- Pick the cheaper one. And plan the year around it.
How to read your result
The new regime wins when you have few deductions; the old regime wins when you fully use 80C, 80D, HRA, and home-loan interest. The crossover is all about how much you actually claim.
Worked examples
The same tool behaves differently depending on what you put in. Here are 3 situations.
Salaried, few deductions
Inputs: Standard salary, little 80C.
What the tool shows: New regime usually comes out cheaper.
What to do: Elect the new regime and keep filing simple.
Salaried, full deductions
Inputs: Maxed 80C/80D, HRA, home loan.
What the tool shows: Old regime often wins once deductions add up.
What to do: Keep proof of every deduction you claim.
Business income
Inputs: Professional or small-business earnings.
What the tool shows: Shows how the choice interacts with business deductions.
What to do: Confirm the regime choice with your CA before filing.
Common questions
Which regime is better? Whichever your deductions favour — the tool shows both.
Can I switch regimes? Rules differ for salaried vs business income — confirm with a CA.
Is this tax advice? No — it's an estimate; verify with a qualified CA.