Income Tax Calculator 2025: Old vs New Regime, Slabs, Deductions & Examples
Use the calculator above to estimate your tax, then follow this guide to understand the slabs, exemptions, deductions, and smart planning steps for salaried professionals, freelancers, and family‑owned businesses.
New vs Old Regime: Quick Summary
New Regime (Default)
- Lower slab rates but minimal deductions
- Standard deduction for salaried allowed (as per latest rules)
- Best if you don't claim many deductions
Old Regime (Optional)
- Higher rates but many deductions/exemptions
- 80C/80D/HRA/LTA available if eligible
- Best if you invest/claim deductions meaningfully
Illustrative Slabs (FY 2024‑25)
| Taxable Income | New Regime Rate | Old Regime Rate |
|---|---|---|
| Up to ₹3,00,000 | 0% | 0% (Basic exemption ₹2.5L) |
| ₹3,00,001 – ₹6,00,000 | 5% | 5% (₹2.5–5L), 20% (₹5–10L) |
| ₹6,00,001 – ₹9,00,000 | 10% | 20% |
| ₹9,00,001 – ₹12,00,000 | 15% | 20% |
| ₹12,00,001 – ₹15,00,000 | 20% | 30% |
| Above ₹15,00,000 | 30% | 30% |
Health & education cess @ 4% applies; surcharge as per income slabs. Slabs are indicative—use the calculator for precise results.
Popular Deductions & Exemptions (Old Regime)
Section 80C (Up to ₹1.5L)
- EPF/PPF, ELSS, life insurance premium
- Principal repayment on home loan, tuition fees
Section 80D
- Medical insurance premium for self/family/parents
- Additional benefits for senior citizens
HRA & LTA
- HRA exemption if you live on rent
- LTA for eligible travel claims
Home Loan Interest
- Section 24(b): Up to ₹2L interest on self‑occupied property
- Additional benefits for affordable housing (conditions apply)
Note: Many of these are not available in the new regime. Choose the regime that yields lower tax via the calculator.
Worked Examples
Example A: Salary ₹9,00,000
Few deductions. New regime typically lower. Use calculator to confirm with standard deduction.
Example B: Salary ₹14,00,000
Max 80C + 80D + home loan interest + HRA could make old regime efficient. Compare both.
Smart Tax Planning Tips
- Prioritize EPF/PPF/ELSS under 80C—start early in the year
- Health insurance for family safeguards finances and saves tax (80D)
- Use HRA correctly—keep rent receipts and landlord PAN when required
- Reimbursements (fuel, internet) as per policy reduce taxable salary
- For business/freelance income, maintain books and claim eligible expenses