Free Income Tax Calculator – Compare Old vs New Regime
Income Tax Calculation
Age Group
FY
2025-26
Age
0–60
Income
₹0
Your Tax Summary
Old Regime
0
New Regime
0
₹0
Use BUSY’s Income Tax Calculator to get a quick estimate of your tax payable under the old and new tax regimes. Enter your income, deductions, exemptions and age category to understand your estimated tax liability in a simple format.
The calculator is useful for salaried employees, professionals, business owners, pensioners and NRIs with Indian-sourced income. It helps you compare both regimes and see which option may work better for your income and deduction profile.
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What is an Income Tax Calculator?
An income tax calculator is a digital tool that estimates how much income tax you may need to pay based on your income, deductions, exemptions, age category, residential status and selected tax regime. Instead of calculating tax manually, you can enter your details and get a structured estimate instantly.
BUSY’s Income Tax Calculator supports both old and new tax regimes, so you can compare your estimated tax under both options before filing your return. This tool is useful for:
Salaried employees
Freelancers & Consultants
Business owners
Retired individuals with pension income
All you need to enter:
- Gross annual income
- Income from salary, business, profession, rent or other sources
- Exempt allowances, if applicable
- Eligible deductions
- Age category
- Residential status
- Tax regime preference
Note: Rebate, deductions and exemptions may depend on your residential status, income type and selected tax regime. Check the latest rules before filing your return.
Latest Income Tax Updates for Old and New Regime
The latest Union Budget introduced key income tax updates that impact tax calculations and regime comparisons for taxpayers. Here are the main highlights:
Standard Deduction
₹50,000 under old regime and ₹75,000 under new regime.
New Regime Slabs
Nil tax up to ₹4 lakh and 30% above ₹24 lakh.
Section 87A Rebate
Up to ₹60,000 rebate for eligible residents with taxable income up to ₹12 lakh.
Default Regime
New regime remains the default tax regime.
How to Use This Income Tax Calculator
Enter income from salary, business, rent, pension and other sources.
Add eligible deductions and exemptions based on tax regime.
Select age category and residential status.
Compare estimated tax under old and new regimes.
View taxable income, rebate, cess and final tax payable.
Income Tax Calculation Formula
Taxable Income = Gross Income – Eligible Exemptions – Eligible Deductions
Tax Payable = Slab-Based Tax – Rebate + Cess + Surcharge, if applicable
The final tax amount may vary based on your income type, selected regime, residential status, deductions, exemptions, surcharge and TDS already deducted.
Calculate Income Tax on Salary with Example
Let’s take a simple example to see how income tax is calculated for a salaried individual under both regimes.
Old Regime Calculation
New Regime Calculation
What the Numbers Mean
- Standard Deduction: ₹50,000 is applied under the old regime and ₹75,000 under the new regime in this example
- Rebate: Since taxable income under the new regime is ₹9,25,000, the eligible resident individual gets Section 87A rebate and pays zero tax
- Tax Difference: Old regime tax payable is ₹70,200, while new regime tax payable is ₹0 in this example
Income Tax Slabs: Old and New Regime
Old Regime Slabs
Senior citizen note: Under the old regime, the basic exemption limit is ₹3 lakh for senior citizens aged 60 to below 80, and ₹5 lakh for super senior citizens aged 80 and above.
Old regime rebate note: Under the old regime, Section 87A rebate applies to eligible resident individuals with taxable income up to ₹5 lakh. The maximum rebate is ₹12,500.
New Regime Slabs
New regime rebate note: Under the new regime, Section 87A rebate is available up to ₹60,000 for eligible resident individuals with taxable income up to ₹12 lakh.
The old regime may work better if you claim deductions and exemptions such as 80C, 80D, HRA, or home loan interest. The new regime may work better if you have fewer deductions and want a simpler tax calculation with revised slab rates. Since the new regime is the default option, compare both regimes before filing and choose the one that gives lower tax payable.
Common Deductions Used in Income Tax Calculation
Deductions reduce your taxable income and can affect your final tax payable. Limited deductions such as standard deduction and employer’s NPS contribution may still be available under the new regime, subject to eligibility. Some common deductions include:
Section 80C
Includes eligible investments such as PPF, ELSS, EPF, life insurance and home loan principal repayment.
Section 80D
Applies to eligible health insurance premiums paid for self, family and parents.
Section 24(b)
Applies to home loan interest, subject to applicable limits and property type.
Section 80CCD
Applies to eligible National Pension System contributions.
HRA Exemption
Available to eligible salaried taxpayers under the old regime if they receive HRA and pay rent.
Note: Most deductions and exemptions are available mainly under the old regime. The new regime allows limited deductions, so always check eligibility before filing.
Explore Relevant Guides
To understand your tax filing, accounting, and financial compliance better, explore these expert resources from BUSY:
Benefits of Using BUSY’s Income Tax Calculator
Compare Tax Regimes
Compare old and new regime tax instantly.
Real-Time Estimates
Get tax estimates without manual calculations.
Add Deductions Easily
Understand deduction impact on tax payable.
Suitable for All Taxpayers
Useful for salary, business and professional income.
Includes Rebate and Cess
Accounts for rebate and cess automatically.
Free to Use
No login or payment required.