Income Tax Calculator
Compare Old vs New Tax Regime for FY 2023-24 (AY 2024-25). Calculate your tax liability accurately.
Your Financial Details
Deductions (Old Regime)
Old Regime
With Deductions
New Regime
Lower Rates, No Deductions
Tool Features
- Side-by-Side Comparison
- Supports FY 23-24
- Smart Recommendation
- Senior Citizen Slabs
Income Tax Calculator: Old vs New Regime
Choosing between the Old and New Tax Regimes is a critical financial decision. The CalcDreams Income Tax Calculator helps you compare your tax liability under both systems for the Financial Year 2023-24 (Assessment Year 2024-25).
Understanding the Difference
- Old Regime: Offers higher tax rates but allows you to claim deductions like 80C (PPF, LIC), 80D (Medical), and HRA. Good if you have significant investments.
- New Regime: Offers significantly lower tax rates but removes most deductions (except Standard Deduction of ₹50,000). It is the default regime.
Tax Slabs (New Regime FY 23-24)
Under the new regime, income up to ₹3 Lakh is exempt. The rebate limit under Section 87A has been increased, meaning income up to ₹7 Lakh is effectively tax-free.
- 0 - 3L: Nil
- 3L - 6L: 5%
- 6L - 9L: 10%
- 9L - 12L: 15%
- 12L - 15L: 20%
- > 15L: 30%
Why Comparing Tax Regimes Matters
Choosing the correct tax regime can save thousands of rupees annually. Taxpayers with home loans, insurance premiums, PPF investments, and HRA exemptions often benefit from the Old Regime, while individuals with fewer deductions may prefer the simplified New Regime.
Using an income tax calculator before filing returns helps estimate liabilities accurately and supports better financial planning throughout the year.
Frequently Asked Questions
Which tax regime is better?
The Old Regime is usually better for taxpayers with high deductions and investments, while the New Regime benefits those preferring lower tax rates with minimal deductions.
Is income up to ₹7 lakh tax-free?
Under the New Tax Regime for FY 2023-24, taxable income up to ₹7 lakh qualifies for rebate under Section 87A, making effective tax liability zero.
Can I switch between Old and New Regime?
Salaried employees can generally switch between tax regimes every financial year while filing returns.
Disclaimer: This tool is for estimation purposes based on FY 2023-24 rules. Please consult a Chartered Accountant (CA) for filing your actual returns.