In-Hand Salary & Tax Calculator
Estimate your monthly take-home salary, standard deductions, and tax liability under New vs Old tax slabs.
Old Regime Deductions (Optional)
New Tax Regime
₹15,340
* Calculations include standard deductions (₹75,000 for New Regime, ₹50,000 for Old Regime) and applicable 4% health & education cess.
New vs Old Tax Regime: Which One Saves More Tax for You?
Selecting between the New and Old Tax Regimes depends primarily on the total exemptions and deductions you can claim. The New Tax Regime features lower tax slab rates and a higher rebate limit (up to ₹7 Lakhs taxable income, effectively ₹7.75 Lakhs with the ₹75,000 standard deduction). However, it removes exemptions like HRA, Section 80C, and 80D.
The Breakeven Rule of Thumb
If your total deductions (80C + HRA + 80D + Home Loan Interest) exceed ₹3.75 Lakhs to ₹4.25 Lakhs per year, the Old Tax Regime frequently yields a lower tax liability. If your deductions are below this threshold, the New Tax Regime is mathematically superior and requires zero documentation hassles.
Frequently Asked Questions
Can salaried employees switch regimes every financial year?
Yes. Salaried individuals with no business or professional income have the legal flexibility to switch between the New and Old tax regimes each year when filing their annual Income Tax Return (ITR).