Compare your income tax under the old and new tax rules, side by side. Enter your yearly income and deductions to see which one saves you more money.
Deductions and the standard deduction are taken away from your income to find your taxable income.
Tax is worked out slab by slab. Each slab only taxes the part of your income that falls in it, not your whole income.
If your taxable income is at or below the rebate limit (₹12 lakh new rules, ₹5 lakh old rules), you pay zero tax under Section 87A.
If your income is just a little above that limit, a rule called marginal relief caps your tax, so crossing the limit by ₹1 does not suddenly cost you a lot.
A 4% health and education cess is added on top of the tax.
The old rules allow more deductions. The new rules have lower rates but fewer deductions.
Taxable income: Gross income − deductions − standard deduction
Tax: Sum of tax across each applicable slab
87A marginal relief: If taxable income is just above the rebate limit, tax is capped at the excess over that limit
Total payable: Tax + surcharge + 4% health & education cess
Why doesn't my tax jump straight to full slab tax the moment I earn ₹1 over ₹12 lakh?
Section 87A has a special rule for exactly this. Once your income crosses the limit, your tax (before cess) is capped at the extra amount over that limit — not the full slab tax. For example, at ₹12,10,000 income, tax before cess is only ₹10,000, not ₹51,500. This rule fades out and stops applying by around ₹12.75 lakh.
Which regime should I choose?
It depends on how many deductions you can claim. If you have big deductions — like home loan interest, 80C savings, or HRA — the old rules often work out better. If you claim few deductions, the new rules usually save more. Compare both before deciding.
How do tax slabs actually work?
Slab by slab. If income above ₹10 lakh is taxed at 30%, only that part above ₹10 lakh is taxed at 30% — not your whole income. Moving into a higher slab never reduces your take-home pay.
Is this an official government calculator?
No. This is an independent estimate based on published tax rates. For filing your return, always use the official Income Tax Department website or ask a tax expert.
Where does NPS fit into this — why is it separate from my other 80C investments?
Your own NPS contribution has two parts. Up to ₹1,50,000 counts toward the same Section 80C cap as PPF, ELSS, and EPF — no extra benefit there beyond that shared limit. But Section 80CCD(1B) gives you a genuinely separate additional deduction of up to ₹50,000 for extra NPS contribution, on top of the 80C cap. So the total you can claim from NPS-related deductions (combined with other 80C instruments) is up to ₹2,00,000, not ₹1,50,000 — this calculator's 80C and NPS fields are kept separate specifically so you don't lose track of that extra ₹50,000. Both only apply under the Old Regime; the New Regime doesn't allow this personal NPS deduction at all (though your employer's own NPS contribution on your behalf, under Section 80CCD(2), is allowed in both regimes).