Income Tax Calculator India – Compare Old vs New Regime (FY 2025-26)

Filing and planning income tax can be confusing — especially with two tax regimes, multiple deductions, and changing slab rules. Solvezi’s Income Tax Calculator makes this simple: enter your annual income and deductions, select the tax regime, and get an instant, detailed tax estimate for FY 2025-26. This guide explains how the calculator works, how to choose between the Old and New regimes, examples, FAQs, and best practices for tax planning.

Why Use an Income Tax Calculator?

Quick Estimates: Get instant tax payable and take-home pay without manual calculations.
Compare Regimes: See side-by-side Old vs New regime outcomes and which one saves tax.
Detailed Breakdown: Slab-level calculation, cess, and effective tax rate.
Deductions Support: Model common deductions like 80C, 80D, HRA and other exemptions.
Visual Insights: Doughnut chart showing Take Home vs Tax, slab-wise tax split and recommendation text.

Income Tax in India (Quick Overview)

India currently allows two tax regimes — Old (with deductions & exemptions) and New (lower slab rates but fewer deductions). The taxpayer can choose the regime and the ability to switch depends on the type of taxpayer and rules in the assessment year. Our calculator uses FY 2025-26 slabs and supports both regimes so you can compare outcomes instantly.

Key Terms

Gross Annual Income: Total income before deductions.
Taxable Income: Income after standard deduction and eligible exemptions/deductions.
Cess: Health & Education Cess (4%) applied on tax.
Effective Rate: Tax payable divided by gross income (shows true tax burden).

Old vs New Tax Regime — What’s the Difference?

Old Regime: Allows deductions and exemptions such as 80C (investments), 80D (health insurance), HRA, home loan interest (section 24), and more. Useful if you claim significant deductions.
New Regime: Lower slab rates, but most deductions & exemptions are removed (only a few permitted). Simpler and often beneficial for taxpayers with fewer deductions.

Your optimal choice depends on your income structure and deductions. The calculator computes both regimes and shows Tax Saved (or extra tax) to guide you.

How to Use Solvezi’s Income Tax Calculator

Open the Tool – Go to the Income Tax Calculator on Solvezi.
Enter Annual Gross Income – Use your gross salary or total annual income.
Select Tax Regime – Choose Old (if you’ll claim deductions) or New.
Enter Deductions (Old Regime only) – Fill 80C, 80D, HRA exemption, and any other deductions you expect to claim.
View Results – The calculator displays:
- Total Tax Payable (including cess)
- Effective Tax Rate
- Tax Saved vs the other regime
- Take-Home Income after tax
- Slab-wise tax breakup and interactive chart
Reset or Adjust – Tweak inputs to model different scenarios.

Example: Calculation Walkthrough

Scenario A — Salaried person using Old Regime

Gross Annual Income: ₹12,00,000
80C investments: ₹1,50,000
80D: ₹25,000
HRA exemption: ₹2,00,000

Results (sample output):

Taxable Income after deductions ≈ ₹8,25,000
Total Tax Payable ≈ ₹xx,xxx (calculator shows exact slab-wise tax and cess)
Take Home ≈ Gross - Tax
Recommendation: Which regime saves tax and by how much.

This step-by-step lets you verify whether continuing to claim deductions under the Old regime is worthwhile versus shifting to the New regime.

What the Calculator Shows (Detailed)

Slab Details: Each taxable slab and the tax amount for that slab (e.g., ₹0–₹2.5L @0%, ₹2.5–₹5L @5%, etc.).
Cess: Health & Education Cess (4%) computed on the tax.
Total Tax & Effective Rate: Summarizes the total payable tax and effective percentage of your income.
Tax Saved: Difference between the two regimes (Old minus New or vice versa).
Take Home: Annual income minus tax (quick view of post-tax income).
Chart: Visual doughnut showing Take Home vs Tax and colored cards for quick metrics.

Who Should Use This Calculator?

Salaried Employees analyzing salary structure and HRA.
Professionals & Freelancers estimating tax under different regimes.
New Tax Payers learning how deductions affect taxable income.
Financial Planners & Accountants modelling client tax outcomes.
Students studying tax slabs and practical tax planning.

Tips: Maximize Tax Efficiency

For those with large 80C & 80D claims, the Old Regime may still be beneficial.
If you don’t invest in tax-saving instruments or have few exemptions, the New Regime is simpler and often cheaper.
Use the calculator to simulate scenarios: increase 80C to see the break-even point, or compare take-home for a salary raise.
Keep records of HRA proofs, insurance receipts, and investment proofs if you claim Old Regime deductions.

How Banks & Tax Professionals Use Slab Breakdowns

Banks and payroll teams use slab-level tax calculations to withhold the correct TDS and to provide a breakdown on Form 16. Tax planners use amortized slab details (like our tool’s slabDetails array) to show how much tax is paid at each bracket and the effect of an incremental change in income.

Frequently Asked Questions (FAQ)

Q1: Which tax regime should I choose — Old or New?
Use the calculator to compare both. Typically choose the regime that gives lower tax after applying your real deductions.

Q2: Does the calculator include cess?
Yes. It adds Health & Education Cess (4%) to the tax automatically.

Q3: Can I include HRA, 80C and 80D in calculation?
Yes — the Old Regime inputs accept 80C, 80D, HRA exemption and other deductions.

Q4: Is the calculator valid for FY 2025-26?
Yes, the tool uses FY 2025-26 slab assumptions. Always cross-check with notifications from the Government of India for the latest budgets.

Q5: Will this replace a tax expert?
No. It’s for quick estimates and planning. For complex filings (capital gains, business income, international income) consult a tax advisor.

Q6: Can I use tool results to file returns?
You can use the estimates for planning. Final filing should be done on the official Income Tax portal or via a CA.

Q7: Does the calculator show monthly take-home?
It shows annual take-home. You can divide by 12 to get monthly take-home.

Q8: Are deductions like home loan interest included?
You can model typical deductions under Other Deductions or via 80C/24B where applicable — consult a CA for exact home-loan interest entries.

Q9: Does the tool handle capital gains or business income?
This version focuses on salary and common deductions. For complex income heads, use professional tax software.

Q10: Is this tool free to use?
Yes — Solvezi provides it free with no signup required.

Practical Examples & Scenarios

Young Professional with minimal deductions — likely benefits from the New Regime; use the calculator to confirm.
Family with insurance & 80C investments — Old Regime often reduces tax due to higher deductions.
Salary Breakup Change — If offered a CTC hike, plug the new salary into the calculator to know real take-home post tax.

Best Practices for Tax Planning

Keep tax-saving investments and receipts organized for Old Regime claims.
Update the calculator annually to reflect any slab or deduction changes announced in the Budget.
Compare both regimes before finalizing tax-saving investments — a smaller deduction might not justify sticking with the Old Regime.
Use the slab-level breakdown to assess the marginal tax impact of any salary increment.

Conclusion

Solvezi’s Income Tax Calculator is a fast, reliable, and easy-to-use tool for Indian taxpayers who want clarity on tax liability for FY 2025-26. Whether you’re choosing between Old and New regimes or planning deductions like 80C, 80D, and HRA, this calculator gives clear, actionable results. Use it to estimate tax, plan investments, and increase your take-home income.

Try Solvezi’s Income Tax Calculator today and make smarter tax decisions: Income Tax Calculator.

Note: This post offers general information and estimations and does not replace professional financial or tax advice. Always verify final tax filings on the official Income Tax portal or with a qualified tax professional.