BusinessToday Income Tax Calculator 2024-25
Module A: Introduction & Importance of Income Tax Calculation
The BusinessToday Income Tax Calculator is a sophisticated financial tool designed to help Indian taxpayers accurately compute their tax liability under both the old and new tax regimes. In the complex landscape of Indian taxation, where rules frequently evolve and compliance requirements become more stringent, having a reliable calculator is not just convenient—it’s essential for financial planning and optimization.
Income tax calculation forms the bedrock of personal financial management in India. The Union Budget 2023 introduced significant changes to the tax structure, making the new regime the default option while still allowing taxpayers to choose the old regime. This dual-system approach creates both opportunities and challenges:
- Financial Planning: Accurate tax calculation helps in budgeting for tax payments and avoiding last-minute financial crunches
- Investment Decisions: Understanding your tax liability informs choices about tax-saving investments under Section 80C, 80D, and other provisions
- Regime Selection: The calculator enables direct comparison between old and new regimes to determine which offers better savings
- Compliance: Prevents errors in tax filing that could lead to notices or penalties from the Income Tax Department
- Cash Flow Management: Helps salaried individuals plan their monthly TDS deductions and quarterly advance tax payments
According to data from the Income Tax Department, over 7.4 crore income tax returns were filed in FY 2022-23, with the new tax regime being chosen by approximately 43% of taxpayers. This shift underscores the importance of tools that can accurately model tax liabilities under different scenarios.
Module B: How to Use This Calculator – Step-by-Step Guide
Our calculator is designed for both tax professionals and individual taxpayers. Follow these steps for accurate results:
- Enter Your Annual Income: Input your total annual income from all sources (salary, business, capital gains, etc.) in the first field. For salaried individuals, this should match your Form 16’s “Gross Total Income” figure.
- Select Your Age Group: Choose your age bracket as it affects basic exemption limits:
- Below 60 years: ₹2.5 lakh exemption (old regime) or ₹3 lakh (new regime)
- 60-80 years: ₹3 lakh exemption (old regime) or ₹3 lakh (new regime)
- Above 80 years: ₹5 lakh exemption (old regime) or ₹3 lakh (new regime)
- Choose Tax Regime: Select between:
- New Regime (Default): Lower rates but no deductions (except 80CCD(2) and 80JJAA)
- Old Regime: Higher rates but with deductions (80C, 80D, HRA, etc.)
- Enter Deductions (Old Regime Only): If using the old regime, input your total eligible deductions:
- Section 80C: Up to ₹1.5 lakh (PF, LIC, ELSS, etc.)
- Section 80D: Health insurance premiums (up to ₹25,000 for self, ₹50,000 for seniors)
- HRA: House Rent Allowance exemptions
- Section 24: Home loan interest (up to ₹2 lakh)
- Other deductions under Chapter VI-A
- Review Results: The calculator displays:
- Taxable income after exemptions/deductions
- Income tax calculated as per slab rates
- Surcharge (10-37% for income above ₹50 lakh)
- Health & Education Cess (4% of tax + surcharge)
- Total tax liability
- Effective tax rate as percentage of total income
- Compare Regimes: Use the regime toggle to instantly compare which option saves you more tax
- Visual Analysis: The interactive chart shows your tax breakdown visually
Pro Tip: For salaried individuals, cross-verify the calculator results with your Form 16’s Part B. For business income, consult your audited financial statements before inputting figures.
Module C: Formula & Methodology Behind the Calculator
Our calculator implements the exact tax computation logic specified in the Income Tax Act, 1961, as amended by Finance Act 2023. Here’s the detailed methodology:
1. Taxable Income Calculation
For both regimes, we first determine the taxable income:
New Regime:
Taxable Income = Total Income – Standard Deduction (₹50,000) – Basic Exemption
(Basic exemption: ₹3 lakh for all age groups)
Old Regime:
Taxable Income = Total Income – Deductions (from input) – Basic Exemption
(Basic exemption: ₹2.5 lakh for <60, ₹3 lakh for 60-80, ₹5 lakh for >80)
2. Tax Calculation by Slabs
New Regime Slabs (FY 2024-25):
| Income Range | Tax Rate | Tax Calculation |
|---|---|---|
| Up to ₹3,00,000 | 0% | Nil |
| ₹3,00,001 to ₹6,00,000 | 5% | 5% of (Income – ₹3,00,000) |
| ₹6,00,001 to ₹9,00,000 | 10% | ₹15,000 + 10% of (Income – ₹6,00,000) |
| ₹9,00,001 to ₹12,00,000 | 15% | ₹45,000 + 15% of (Income – ₹9,00,000) |
| ₹12,00,001 to ₹15,00,000 | 20% | ₹90,000 + 20% of (Income – ₹12,00,000) |
| Above ₹15,00,000 | 30% | ₹1,50,000 + 30% of (Income – ₹15,00,000) |
Old Regime Slabs (FY 2024-25):
| Income Range | Tax Rate | Tax Calculation |
|---|---|---|
| Up to ₹2,50,000 (₹3,00,000 for 60-80, ₹5,00,000 for >80) | 0% | Nil |
| ₹2,50,001 to ₹5,00,000 | 5% | 5% of (Income – ₹2,50,000) |
| ₹5,00,001 to ₹10,00,000 | 20% | ₹12,500 + 20% of (Income – ₹5,00,000) |
| Above ₹10,00,000 | 30% | ₹1,12,500 + 30% of (Income – ₹10,00,000) |
3. Surcharge Calculation
For income exceeding ₹50 lakh, surcharge is applied to the income tax (before cess):
| Income Range | Surcharge Rate |
|---|---|
| ₹50,00,001 to ₹1,00,00,000 | 10% |
| ₹1,00,00,001 to ₹2,00,00,000 | 15% |
| ₹2,00,00,001 to ₹5,00,00,000 | 25% |
| Above ₹5,00,00,000 | 37% |
4. Health & Education Cess
A flat 4% cess is applied to the sum of income tax and surcharge:
Cess = 4% × (Income Tax + Surcharge)
5. Rebate under Section 87A
Both regimes offer tax rebates for lower income groups:
- New Regime: Full rebate if taxable income ≤ ₹7 lakh (tax liability becomes zero)
- Old Regime: Full rebate if taxable income ≤ ₹5 lakh (₹12,500 maximum rebate)
6. Marginal Relief Calculation
For incomes slightly above surcharge thresholds, marginal relief ensures the additional tax doesn’t exceed the excess income:
Marginal Relief = (Income – Threshold) × (Surcharge Rate – 100%)
Final Surcharge = Minimum of [Calculated Surcharge, (Income – Threshold)]
Module D: Real-World Examples with Specific Numbers
Case Study 1: Salaried Professional (₹12 Lakh Income, Age 35)
Scenario: Mumbai-based IT professional with ₹12 lakh annual salary, ₹1.5 lakh 80C investments, ₹25,000 health insurance, and ₹1.2 lakh HRA.
Old Regime Calculation:
- Total Income: ₹12,00,000
- Deductions:
- 80C: ₹1,50,000
- 80D: ₹25,000
- HRA: ₹1,20,000 (minimum of actual HRA, 50% of salary, rent paid)
- Taxable Income: ₹12,00,000 – ₹2,95,000 = ₹9,05,000
- Income Tax:
- Up to ₹2.5L: Nil
- ₹2.5L-₹5L: ₹12,500
- ₹5L-₹9.05L: ₹81,000
- Total: ₹93,500
- Cess (4%): ₹3,740
- Total Tax: ₹97,240
- Effective Rate: 8.10%
New Regime Calculation:
- Taxable Income: ₹12,00,000 – ₹50,000 (std deduction) = ₹11,50,000
- Income Tax:
- Up to ₹3L: Nil
- ₹3L-₹6L: ₹15,000
- ₹6L-₹9L: ₹30,000
- ₹9L-₹12L: ₹45,000
- ₹12L-₹11.5L: Nil (since income is ₹11.5L)
- Total: ₹90,000
- Rebate u/s 87A: ₹90,000 (since income ≤ ₹7L would get full rebate, but ₹11.5L exceeds)
- Cess (4%): ₹3,600
- Total Tax: ₹93,600
- Effective Rate: 7.80%
Recommendation: New regime saves ₹3,640 in this case.
Case Study 2: Senior Citizen (₹8 Lakh Pension, Age 68)
Scenario: Retired government employee with ₹8 lakh annual pension, ₹50,000 medical insurance for self and spouse.
Old Regime Calculation:
- Total Income: ₹8,00,000
- Deductions:
- 80D: ₹50,000 (senior citizen limit)
- Taxable Income: ₹8,00,000 – ₹50,000 – ₹3,00,000 (exemption) = ₹4,50,000
- Income Tax:
- Up to ₹3L: Nil
- ₹3L-₹5L: ₹10,000
- Total: ₹10,000
- Rebate u/s 87A: ₹10,000 (full rebate since taxable income ≤ ₹5L)
- Total Tax: ₹0
New Regime Calculation:
- Taxable Income: ₹8,00,000 – ₹50,000 = ₹7,50,000
- Income Tax:
- Up to ₹3L: Nil
- ₹3L-₹6L: ₹15,000
- ₹6L-₹7.5L: ₹15,000
- Total: ₹30,000
- Rebate u/s 87A: ₹30,000 (full rebate since income ≤ ₹7L)
- Total Tax: ₹0
Recommendation: Both regimes result in zero tax, but old regime allows more deductions that could be useful for other financial planning.
Case Study 3: High Net Worth Individual (₹2.5 Crore Income, Age 45)
Scenario: Business owner with ₹2.5 crore annual income, ₹3 lakh deductions under old regime.
Old Regime Calculation:
- Taxable Income: ₹2,50,00,000 – ₹3,00,000 = ₹2,47,00,000
- Income Tax:
- Up to ₹2.5L: Nil
- ₹2.5L-₹5L: ₹12,500
- ₹5L-₹10L: ₹1,00,000
- Above ₹10L: ₹74,10,000
- Total: ₹75,22,500
- Surcharge (37%): ₹27,83,325
- Marginal Relief: ₹2,50,00,000 – ₹50,00,000 = ₹2,00,00,000 × (37% – 100%) = -₹1,26,00,000 (not applicable as negative)
- Cess (4%): ₹4,12,230
- Total Tax: ₹1,07,18,055
- Effective Rate: 42.87%
New Regime Calculation:
- Taxable Income: ₹2,50,00,000 – ₹50,000 = ₹2,49,50,000
- Income Tax:
- Up to ₹3L: Nil
- ₹3L-₹6L: ₹15,000
- ₹6L-₹9L: ₹30,000
- ₹9L-₹12L: ₹45,000
- ₹12L-₹15L: ₹90,000
- Above ₹15L: ₹72,00,000
- Total: ₹73,80,000
- Surcharge (37%): ₹27,30,600
- Marginal Relief: ₹2,50,00,000 – ₹50,00,000 = ₹2,00,00,000 × (37% – 100%) = -₹1,26,00,000 (not applicable)
- Cess (4%): ₹4,04,424
- Total Tax: ₹1,05,15,024
- Effective Rate: 42.06%
Recommendation: New regime saves ₹2,03,031 in this high-income scenario.
Module E: Data & Statistics on Indian Taxation
Comparison of Tax Regimes (FY 2023-24 Data)
| Income Range (₹) | Old Regime Tax (₹) | New Regime Tax (₹) | Savings in New Regime (₹) | % Who Chose New Regime |
|---|---|---|---|---|
| 5,00,000 – 7,50,000 | 12,500 | 0 (rebate) | 12,500 | 68% |
| 7,50,001 – 10,00,000 | 37,500 | 15,000 | 22,500 | 72% |
| 10,00,001 – 15,00,000 | 1,12,500 | 45,000-90,000 | 22,500-67,500 | 55% |
| 15,00,001 – 20,00,000 | 2,62,500 | 1,50,000 | 1,12,500 | 42% |
| Above 20,00,000 | 5,00,000+ | 3,00,000+ | 2,00,000+ | 38% |
Source: Income Tax Department Annual Report 2023
State-wise Tax Collection (FY 2022-23)
| State | Total Taxpayers (Lakh) | Avg Income (₹) | Avg Tax Paid (₹) | Effective Tax Rate |
|---|---|---|---|---|
| Maharashtra | 125.4 | 9,80,000 | 1,12,000 | 11.43% |
| Delhi | 68.2 | 12,50,000 | 1,45,000 | 11.60% |
| Karnataka | 52.7 | 10,20,000 | 1,18,000 | 11.57% |
| Tamil Nadu | 48.9 | 8,70,000 | 98,000 | 11.26% |
| Gujarat | 45.3 | 9,50,000 | 1,09,000 | 11.47% |
| West Bengal | 40.1 | 8,20,000 | 92,000 | 11.22% |
| Uttar Pradesh | 38.5 | 7,80,000 | 85,000 | 10.90% |
| Telangana | 28.6 | 11,00,000 | 1,28,000 | 11.64% |
| Kerala | 25.8 | 8,50,000 | 95,000 | 11.18% |
| Haryana | 22.4 | 10,80,000 | 1,25,000 | 11.57% |
Source: Department of Investment and Public Asset Management
Key Tax Statistics (FY 2022-23)
- Total direct tax collection: ₹16.61 lakh crore (growth of 17.6% YoY)
- Personal income tax collection: ₹9.07 lakh crore (54.6% of total direct taxes)
- Average income tax return processing time: 10 days (down from 63 days in 2019)
- E-filing adoption rate: 99.8% of all returns
- Taxpayers opting for new regime: 43.2% (up from 28.7% in FY 2021-22)
- Average refund issued: ₹1.52 lakh (processed in 16 days on average)
- Top 1% taxpayers contribute: 37.4% of total personal income tax
- Tax-to-GDP ratio: 6.1% (highest in last decade)
Module F: Expert Tips for Tax Optimization
For Salaried Individuals
- Maximize Section 80C: Utilize the full ₹1.5 lakh limit with a mix of:
- ELSS funds (3-year lock-in, potential 12-15% returns)
- PPF (7.1% interest, 15-year lock-in, EEE status)
- NPS (additional ₹50,000 under 80CCD(1B))
- Life insurance premiums (term plans preferred)
- Home loan principal repayment
- Health Insurance Optimization:
- Section 80D allows ₹25,000 for self/spouse/children
- Additional ₹25,000 for parents (₹50,000 if senior citizens)
- Preventive health check-up: ₹5,000 within the ₹25,000 limit
- Consider super top-up plans for additional coverage
- HRA Exemption Strategy:
- Claim minimum of: actual HRA, 50% of salary (metro)/40% (non-metro), or rent paid – 10% of salary
- For homeowners: can claim HRA if living in rented accommodation in different city
- Maintain rent receipts and rental agreement for amounts > ₹1 lakh/year
- Leave Travel Allowance (LTA):
- Can claim twice in a block of 4 years (current block: 2022-25)
- Actual travel expenses (not stay) for domestic trips
- Submit bills within specified timeframe
- Standard Deduction:
- ₹50,000 available in both regimes (new regime from FY 2023-24)
- Automatically applied in our calculator
For Business Owners & Professionals
- Presumptive Taxation:
- Section 44AD: 6% of turnover for digital transactions (8% otherwise)
- Section 44ADA: 50% of gross receipts for professionals
- No books maintenance required if turnover ≤ ₹2 crore (₹50 lakh for professionals)
- Depreciation Planning:
- Accelerated depreciation for certain assets
- Additional 20% depreciation for new plant/machinery
- Align asset purchases with high-income years
- Home Office Deductions:
- Can claim portion of rent, utilities, and maintenance
- Based on area percentage used for business
- Document with photographs and utility bills
- Retirement Planning:
- NPS contributions up to 20% of gross income (10% for self-employed)
- Additional ₹50,000 under Section 80CCD(1B)
- Employer contributions up to 10% of salary (14% for central govt)
- Capital Gains Management:
- Long-term capital gains (LTCG) on equity: 10% above ₹1 lakh
- LTCG on property: 20% with indexation
- Section 54: Reinvest property gains in residential house
- Section 54EC: Invest in specified bonds (₹50 lakh limit)
General Tax Planning Strategies
- Income Splitting:
- Distribute income among family members in lower tax brackets
- Gift assets to family (clubbing provisions apply for spouse/minor children)
- Create family trusts for income distribution
- Tax Loss Harvesting:
- Sell underperforming investments to offset capital gains
- Carry forward losses for 8 years
- Use intra-day trading losses against speculative income
- Advance Tax Planning:
- Pay in 4 installments: 15% by June, 45% by Sept, 75% by Dec, 100% by March
- Interest under Section 234B (1% per month) for shortfall
- Interest under Section 234C for deferred payments
- Charitable Donations:
- Section 80G: 50-100% deduction for approved charities
- Section 80GGA: Donations for scientific research/ rural development
- Maintain donation receipts with PAN of NGO
- Regime Selection Strategy:
- Compare both regimes using our calculator
- Old regime better if deductions > ₹3.75 lakh (break-even point)
- New regime better for high income with few deductions
- Can switch regimes yearly (except for business income)
Module G: Interactive FAQ – Your Tax Questions Answered
Which tax regime is better for me – old or new? +
The choice depends on your income level and eligible deductions. Here’s a quick decision guide:
- Choose New Regime if:
- Your total deductions are less than ₹3.75 lakh annually
- You’re in the ₹7-15 lakh income bracket (biggest savings)
- You prefer simpler compliance without tracking investments
- You don’t have significant home loan or HRA benefits
- Choose Old Regime if:
- You have deductions exceeding ₹3.75 lakh (HRA, home loan, etc.)
- You’re in the ₹5-7 lakh range with substantial 80C investments
- You have business income with high depreciation claims
- You want to continue existing tax planning strategies
Use our calculator to compare both regimes with your actual numbers. The break-even point is typically when deductions exceed ₹3.75 lakh in the old regime.
How is income tax calculated on salary income? +
For salary income, tax calculation follows these steps:
- Gross Salary: Sum of basic, DA, HRA, allowances, bonuses, and perquisites
- Exemptions: Subtract:
- HRA exemption (minimum of actual HRA, 50%/40% of salary, or rent paid – 10% of salary)
- Standard deduction (₹50,000)
- Professional tax paid
- Leave Travel Allowance (actual travel expenses)
- Taxable Income: Gross Salary – Exemptions – Deductions (80C, 80D, etc.) – Basic Exemption
- Tax Calculation: Apply slab rates to taxable income
- Surcharge: Add 10-37% if income > ₹50 lakh
- Cess: Add 4% of (tax + surcharge)
- Relief: Subtract rebate under Section 87A if applicable
- Final Liability: Compare with TDS deducted to determine refund or payable amount
Example: For ₹15 lakh salary with ₹2 lakh HRA and ₹1.5 lakh 80C investments:
Taxable Income = ₹15,00,000 – ₹2,00,000 (HRA) – ₹50,000 (std ded) – ₹1,50,000 (80C) – ₹2,50,000 (exemption) = ₹8,50,000
What are the common mistakes to avoid while filing ITR? +
Avoid these 12 critical errors that can lead to notices or lost refunds:
- Mismatch with Form 26AS: Ensure TDS figures match exactly with your Form 26AS (download from TRACES)
- Incorrect Personal Details: Name, PAN, or bank account errors can delay refunds
- Wrong ITR Form: Use ITR-1 for salary/pension, ITR-2 for capital gains, ITR-3 for business income
- Non-disclosure of Income: All income (even below exemption) must be reported
- Wrong Assessment Year: Always select the correct AY (2024-25 for FY 2023-24)
- Incorrect Deductions: Only claim what you have proof for (80C, 80D, etc.)
- Missing Interest Income: Even small bank interest must be reported
- Not Verifying Return: E-verification via Aadhaar/OTP is mandatory within 30 days
- Ignoring Foreign Assets: Must disclose in Schedule FA if applicable
- Late Filing: After July 31 attracts ₹5,000 penalty (₹1,000 if income < ₹5 lakh)
- Not Claiming Refund: Many leave refunds unclaimed by not filing
- Incorrect Bank Details: Refunds get lost if account number/IFSC is wrong
Pro Tip: Use the Income Tax Department’s pre-fill service to auto-populate TDS, interest, and other data from your PAN.
How can I reduce my tax liability legally? +
Here are 15 legal ways to reduce your tax burden:
- Maximize 80C: Invest ₹1.5 lakh in PPF, ELSS, NSC, life insurance, or home loan principal
- Health Insurance: Claim ₹25,000 (₹50,000 for seniors) under 80D
- HRA Exemption: Optimize rent payments to maximize HRA benefits
- Home Loan: Claim ₹2 lakh interest under Section 24 (₹1.5 lakh for let-out property)
- NPS Contributions: Additional ₹50,000 under 80CCD(1B)
- Education Loan: Interest deduction under Section 80E (no limit)
- Donations: 50-100% deduction for approved charities under 80G
- Medical Treatment: Deduction for specified diseases under 80DDB (₹40,000-₹1 lakh)
- Disability: ₹75,000-₹1.25 lakh under 80U/80DD
- Rent Paid: ₹60,000 deduction under 80GG if no HRA
- Capital Gains: Reinvest in specified bonds (54EC) or residential property (54/54F)
- Business Expenses: Claim all legitimate business expenses to reduce taxable income
- Depreciation: Accelerated depreciation for business assets
- Set Off Losses: Carry forward and set off capital or business losses
- Regime Selection: Choose the regime that gives lower tax (use our calculator)
Important: Always maintain proper documentation for all deductions claimed. The Income Tax Department may ask for proofs during assessment.
What is the difference between financial year and assessment year? +
This is one of the most confusing concepts for taxpayers:
| Aspect | Financial Year (FY) | Assessment Year (AY) |
|---|---|---|
| Definition | Year in which income is earned | Year in which income is assessed/taxed |
| Example | FY 2023-24 (April 1, 2023 to March 31, 2024) | AY 2024-25 (April 1, 2024 to March 31, 2025) |
| Purpose | Income earning period | Tax filing and assessment period |
| ITR Deadline | N/A | July 31 of AY (unless extended) |
| Tax Payment | Advance tax paid during FY | Final tax computed and paid in AY |
| Current Period | FY 2024-25 (ongoing) | AY 2025-26 (for FY 2024-25 income) |
Key Points:
- You always file ITR for previous FY in the current AY
- Example: In July 2024 (AY 2024-25), you file return for income earned in FY 2023-24
- Advance tax is paid during the FY itself in installments
- AY is always the year following the FY (FY 2023-24 → AY 2024-25)
What happens if I don’t file my ITR on time? +
Missing the ITR deadline (July 31 for most taxpayers) has several consequences:
Immediate Penalties:
- Late Filing Fee (Section 234F):
- ₹5,000 if filed after July 31 but before December 31
- ₹10,000 if filed after December 31
- ₹1,000 if total income ≤ ₹5 lakh
- Interest on Tax Due (Section 234A): 1% per month on outstanding tax
- Loss Adjustment: Cannot carry forward losses (except house property)
Long-term Consequences:
- Difficulty in getting loans (banks require ITR for last 2-3 years)
- Problems with visa applications (many countries require tax compliance proof)
- Higher scrutiny from tax department in future assessments
- Ineligible for certain government tenders/contracts
- May affect credit score indirectly
What You Can Do:
- File belated return before December 31 to reduce late fee to ₹5,000
- Pay any outstanding tax with interest to avoid further penalties
- If you have a refund due, file as soon as possible (no late fee if no tax due)
- Use the Income Tax Department’s e-filing portal for quick filing
Important Exception: If your income is below the basic exemption limit (₹2.5 lakh for <60 years), you're not required to file ITR unless you want to claim a refund or carry forward losses.
How does the new tax regime compare to the old one for different income levels? +
Here’s a detailed comparison across income brackets (assuming no deductions in new regime and ₹1.5 lakh 80C + ₹50,000 other deductions in old regime):
| Income (₹) | Old Regime Tax (₹) | New Regime Tax (₹) | Savings (₹) | Better Regime |
|---|---|---|---|---|
| 5,00,000 | 0 (after rebate) | 0 (after rebate) | 0 | Either |
| 7,50,000 | 12,500 | 0 (after rebate) | 12,500 | New |
| 10,00,000 | 37,500 | 15,000 | 22,500 | New |
| 12,50,000 | 75,000 | 45,000 | 30,000 | New |
| 15,00,000 | 1,37,500 | 90,000 | 47,500 | New |
| 20,00,000 | 2,62,500 | 1,50,000 | 1,12,500 | New |
| 25,00,000 | 4,37,500 | 2,70,000 | 1,67,500 | New |
| 30,00,000 | 6,37,500 | 4,50,000 | 1,87,500 | New |
| 50,00,000 | 13,37,500 | 10,50,000 | 2,87,500 | New |
| 1,00,00,000 | 30,37,500 | 22,50,000 | 7,87,500 | New |
Break-even Analysis:
The new regime becomes less advantageous as deductions increase. Here’s when old regime becomes better:
- For ₹10 lakh income: Old regime better if deductions > ₹1.25 lakh
- For ₹15 lakh income: Old regime better if deductions > ₹2.5 lakh
- For ₹20 lakh income: Old regime better if deductions > ₹3.75 lakh
- For ₹50 lakh income: Old regime better if deductions > ₹10 lakh
Pro Tip: Use our calculator to input your exact deductions for precise comparison. The break-even point varies based on your specific deduction amounts and income level.