Old vs New Tax Regime Calculator Excel FY 2026–27 – Free Download, Compare Income Tax Slabs, Plan Investments, and Calculate Tax Online (India)
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income tax calculator old regime
The choice depends on your deductions and exemptions.
Old Regime: If you claim deductions like 80C, HRA, LTA, etc., the old regime may be beneficial. New Regime: If you don’t claim deductions and prefer a lower tax rate, the new regime is better.
Use our income tax calculator to compare both regimes and make best selection.
Yes, the ₹50,000 standard deduction is available in the old tax regime, and ₹75,000 is available in the new tax regime.
If you are a salaried individual, you can switch between regimes every year while filing your ITR.
However, if you have business income, once you opt for the new regime, you cannot switch back to the old regime.
The old regime allows various deductions such as:
- Section 80C: ₹1.5 lakh for EPF, PPF, ELSS, Life Insurance, etc.
- Section 80D: ₹25,000 to ₹75,000 for health insurance premiums.
- HRA (House Rent Allowance), LTA (Leave Travel Allowance).
- Home Loan Interest (Section 24B): Up to ₹2 lakh per year.
No, HRA exemption is not available under the new tax regime. If you wish to claim HRA, you must opt for the old regime.
No, under the new tax regime, Section 24(b) (₹2 lakh deduction on home loan interest) is not available.
If you have a home loan, the old tax regime may be beneficial.
Under the new tax regime (from FY 2026-27), income up to ₹12 lakh is tax-free due to the rebate under Section 87A.
NPS offers triple tax benefits:
- Section 80CCD(1): ₹1.5 lakh limit (part of 80C).
- Section 80CCD(1B): Additional ₹50,000 deduction.
- Section 80CCD(2): Employer’s contribution (up to 10% / 14% of salary) is tax-free.
Employers deduct TDS on salary based on estimated annual income. No TDS is deducted if total taxable income is below the basic exemption limit.
- TDS is deducted under Section 192.
Income Tax Calculator
What is this Income Tax Calculator?
This is a free online tool that helps you calculate your tax liability based on your salary, deductions, and exemptions. It provides an instant comparison between the Old and New Tax Regimes to help you choose the best option.
Use our Income Tax Calculator to compare your tax liability under the Old and New Tax Regimes.
What is a Tax Regime?
A tax regime refers to the structure of taxation, including tax rates, deductions, and exemptions applicable to a taxpayer. In India, you can choose between the Old Tax Regime and the New Tax Regime. Each regime has different tax slabs and benefits.
Choosing Your Tax Regime
Every financial year, salaried employees must declare their preferred tax regime to their employer at the beginning of the year. This choice determines how TDS (Tax Deducted at Source) is deducted from their salary.
If you choose the Old Tax Regime, you can claim deductions such as 80C (PF, PPF, ELSS), 80D (Health Insurance), HRA, and home loan interest.
If you opt for the New Tax Regime, you will get lower tax rates but no deductions or exemptions (except for the standard deduction).
Can You Change the Tax Regime Later?
Your choice of tax regime with the employer is not final. Here’s what you need to know:
During the financial year, you have only one opportunity to change your regime with your employer.
However, at the time of filing your Income Tax Return (ITR), you can switch to any regime, irrespective of what you declared to your employer.
If you don’t select a regime, your employer will apply the default tax regime (New Regime for FY 2024-25 and later).
What Happens If You Do Not Select a Tax Regime?
If you fail to select a tax regime, the following will happen:
Your employer will automatically deduct TDS as per the New Tax Regime.
You might pay higher taxes if you have deductions under 80C, 80D, or HRA but have not opted for the Old Regime.
At the time of filing your ITR, you can still change the regime and claim a refund if you are eligible under the Old Regime.
Why is Selecting the Right Regime Important?
Choosing the right tax regime is crucial for tax savings and financial planning. Here’s why:
It helps in optimizing your take-home salary by minimizing tax deductions.
The Old Regime is beneficial for those with high investments in tax-saving instruments.
The New Regime is better for those with fewer deductions and who prefer simpler tax filing.
Making an informed decision ensures maximum tax savings and avoids unnecessary TDS deductions.
To compare both regimes, use our Income Tax Calculator and make the best choice for your tax planning.
What is Income Tax?
Income tax is a direct tax imposed on individuals and businesses based on their total income during a financial year. It is an important source of government revenue, used for infrastructure, public services, and development projects.
How to Use the SGC Income Tax Calculator?
Enter your basic salary and other monthly components in the relevant boxes.
Add perks and bills for Leave Travel Allowance (LTA) exemption if applicable.
Adjust income or loss from house property and add any income from other sources.
Enter applicable deductions under Chapter VIA in the relevant sections.
View the tax calculation for both the Old and New Tax Regimes.
At the end, the calculator will suggest which tax regime is better for you.
Once you finish, you can download the tax calculation for your records.
How to Calculate Income Tax?
Income tax is calculated step by step using the following method:
Step 1: Calculate total income from all sources including salary, house property, business, capital gains, and other sources.
Step 2: Deduct exemptions such as HRA, LTA, and standard deductions.
Step 3: Subtract eligible deductions under Chapter VIA (80C, 80D, 80TTA, etc.).
Step 4: Determine taxable income after applying deductions.
Step 5: Apply the tax slabs of both the Old and New Tax Regimes.
Step 6: Deduct any applicable rebate under Section 87A.
Step 7: Add 4 percent health and education cess on the final tax amount.
Step 8: Adjust tax liability after considering TDS and advance tax payments.
Maximize your tax savings by understanding the deductions and exemptions available under various sections of the Income Tax Act.
Popular Tax Deductions
Section 80C - Investments in Life Insurance, PPF, EPF, ELSS, Tax-saving FDs, NSC, Sukanya Samriddhi Yojana, etc. (Maximum Limit: ₹1,50,000)
Section 80D - Medical insurance premium for self, family, and parents. (Maximum Limit: ₹1,00,000 for senior citizens)
Section 80TTA & 80TTB - Interest on Savings Accounts & Fixed Deposits for Senior Citizens. (Maximum Limit: ₹10,000 for 80TTA & ₹50,000 for 80TTB)
Section 80E - Deduction on interest paid for an education loan (No upper limit).
Section 24(b) - Interest on home loan for self-occupied and rented property. (Limit: ₹2,00,000 for self-occupied)
Medical and Disability-Related Deductions
Section 80DD - Maintenance, medical treatment, and rehabilitation of a dependent with a disability (Limit: ₹75,000 for disability & ₹1,25,000 for severe disability).
Section 80DDB - Treatment of specified diseases for self or dependents. (Limit: ₹40,000 for normal taxpayers, ₹1,00,000 for senior citizens).
Section 80U - Deduction for individuals with a disability. (Limit: ₹75,000 for disability & ₹1,25,000 for severe disability).
Other Important Exemptions
House Rent Allowance (HRA) Exemption - Available if staying in rented accommodation. The exemption amount is the lowest of:
50% of basic salary (for metro cities) or 40% (for non-metro cities)
Actual HRA received
Rent paid minus 10% of basic salary
Standard Deduction – ₹50,000 under Old Tax Regime; ₹75,000 under New Tax Regime for salaried individuals and pensioners.
Leave Travel Allowance (LTA) - Available for travel within India for self and family (twice in four years, only under the old tax regime).
Donations & Charitable Contributions
Section 80G - Donations to registered charities and relief funds (50% or 100% deduction, depending on eligibility).
Section 80GGA - Donations for scientific research or rural development (100% deduction, subject to conditions).
How to Claim Deductions?
To avail of tax deductions, ensure you have valid documents like payment receipts, bank certificates, premium payment proofs, and investment statements.
Official Income Tax Deduction Guidelines
You can refer to complete official information for all types of payments, exemptions, deductions, and more details about income tax on this link:
Income Tax Deductions
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SGC Services offers a free and accurate online Income Tax Calculator. Compare tax liability under Old and New Regimes and make informed decisions.
Employee Code
Your Employee Code (also known as Employee ID) is a unique identifier assigned by your employer.
You can find it on your Company ID Card or Payslip.
The Employee Code is optional in this form; however, it is required if you wish to download the document.
For more details about the Employee Code, you can refer to
click here
.
Employee Name
Your Employee Name (also referred to as Your Name) is mandatory in the payroll system.
It should exactly match the records maintained by your employer for payroll processing to avoid discrepancies in salary, tax filings, and compliance.
You can find your official Employee Name on your Company ID Card or Payslip.
In this form, the Employee Name is optional; however, it is required if you wish to download the document.
Monthly Rent Paid
Paying monthly rent to a landlord can provide tax benefits under the old tax regime. Employees can claim HRA exemption for rent paid, ranging between 11% and 60% of their basic salary.
However, if the monthly rent exceeds ₹50,000, it is mandatory to deduct 5% TDS as per Section 194IB of the Income Tax Act.
To claim HRA exemption, employees must submit valid rent payment receipts to their employer. The exemption amount is determined by the least of the following:
50% of basic salary if residing in metro cities (Delhi, Mumbai, Kolkata, Chennai,Bengaluru, Pune, Hyderabad,Ahmedabad) or 40% of basic salary in non-metro cities.
Actual HRA received.
Rent paid minus 10% of basic salary.
Important: HRA exemption is only available under the old tax regime. The new tax regime (Finance Act 2020) does not allow deductions like HRA.
For official guidelines and to calculate your HRA exemption, visit the Income Tax Department's HRA Calculator:
HRA Calculator
.
Taxpayer Category
Select your Taxpayer Category as per your age:
Below 60 years: Select General
60 years and above: Select Senior Citizen
80 years and above: Select Super Senior Citizen
Your taxpayer category determines the applicable income tax slabs and exemption limits. Senior and super senior citizens enjoy higher exemption limits to reduce tax liability.
Selecting the correct category ensures proper tax calculations and benefits.
For more details on income tax applicability based on age, visit the official Income Tax Department portal:
Income Tax Return Applicability
.
State
Select your applicable state. This helps in calculating your Professional Tax (P-Tax) for tax deduction under Section 16 of the Income Tax Act, if applicable.
It also ensures accurate monthly Professional Tax (P-Tax) deduction for net salary computation.
Professional Tax varies across different states in India. Some states levy P-Tax on salaried individuals, while others do not.
The amount deducted depends on state laws and salary slabs.
Select your applicable city status as Metro or Non-Metro. The four metro cities in India are Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Pune, Hyderabad, and Ahmedabad.
If you are renting a house in any other city, select Non-Metro.
Metro cities offer a higher House Rent Allowance (HRA) exemption compared to non-metro cities.
The exemption calculation is as follows:
Metro Cities: HRA exemption is 50% of Basic Salary.
Non-Metro Cities: HRA exemption is 40% of Basic Salary.
There have been discussions about classifying cities like Gurgaon and Bengaluru as metro cities to offer higher HRA exemptions.
For more details, refer to:
Metro & Non-Metro HRA Exemption Details
.
Basic Salary + DA
Enter your monthly basic salary as per your latest Payslip, Offer Letter, or Increment Letter.
Basic Salary is a mandatory component, usually 50% of Gross CTC. It forms the basis for PF, Gratuity, ESI, and Bonus and is fully taxable.
House Rent Allowance
Enter your monthly HRA as per your latest Payslip, Offer Letter, or Increment Letter.
HRA is provided by employers primarily for tax-saving under the old tax regime. This field is flexible, allowing modifications to adjust HRA calculations automatically.
Leave Travel Allowance
Enter your monthly LTA as per your latest Payslip, Offer Letter, or Increment Letter.
LTA provides tax benefits under Rule 2B of Income Tax Rules and is exempt under Section 10(5) in the old tax regime only. It covers domestic travel expenses for up to two trips with family within a four-year block.
You can add travel bills amount below for exemption.
NPS Employer
Enter your monthly NPS Employer contribution as per your latest Payslip, Offer Letter, or Increment Letter.
NPS employer contribution is tax-deductible up to 10% of Basic Salary under the old tax regime and 14% of Basic Salary under the new tax regime.
Enter your monthly Medical Allowance as per your latest Payslip.
Medical Allowance is fully taxable, meaning it does not qualify for any exemption, deduction, rebate, or relief under income tax laws.
Special Allowance
Enter your monthly Special Allowance as per your latest Payslip.
Special Allowance is fully taxable and does not qualify for any exemption, deduction, rebate, or relief under income tax laws.
Other Allowance
Enter your monthly Other Allowance as per your latest Payslip.
Other Allowance is fully taxable and does not qualify for any exemption, deduction, rebate, or relief under income tax laws.
Children Education
Enter your monthly allowance as per your latest Payslip.
Old Tax Regime: Exempt up to ₹3000/month per child (max 2) under Section 10(14).
New Tax Regime: Fully taxable.
Hostel Allowance
Enter your monthly hostel allowance as per your latest Payslip.
Old Tax Regime: Exempt up to ₹9000/month per child (max 2) under Section 10(14).
New Tax Regime: Fully taxable.
Washing Allowance
Enter your monthly washing allowance as per your latest Payslip.
Old Tax Regime: Exempt only if spent on official uniform maintenance under Section 10(14).
New Tax Regime: Fully taxable.
Uniform Allowance
Enter your monthly uniform allowance as per your latest Payslip.
Old Tax Regime: Exempt if spent on official uniform under Section 10(14).
New Tax Regime: Fully taxable.
Statutory Bonus
Enter your monthly bonus as per your latest Payslip, if applicable. In most cases, bonuses are paid annually, so check your letter carefully.
All types of bonuses are fully taxable and do not qualify for any exemption, deduction, rebate, or relief under income tax laws.
Meal (Voucher) Pay
Enter your monthly meal voucher amount as per your latest Payslip, if applicable.
Meal vouchers are tax-exempt up to ₹200 per meal under the old tax regime. Any amount beyond this limit is fully taxable.
New Tax Regime: Fully taxable.
All Reimbursements
Enter your monthly reimbursement amount as per your latest Payslip, if applicable.
Most of Reimbursements are exempt only if incurred for official purposes and supported by valid bills in both Regimes.
Add: Annual Variable Payments
Add all applicable variable payments here — like annual bonus, incentives, LTIP, performance-linked pay, or any other one-time variable income.
These payments are part of your total income and may affect your tax calculation. Enter accurate values for proper payroll and tax planning.
Add: Annual Perquisites & Benefits
Add all applicable annual perks here, if any — like ESOP, ESPP, RSU, interest-free loan, company car and driver, hotel stay, or other non-cash benefits.
These perquisites are considered part of your total income and may be taxable as per income tax rules. Enter details carefully to ensure correct tax calculation.
Less: HRA Exemption
HRA exemption will be calculated automatically in this section based on your basic salary, monthly HRA, monthly rent, and selected city (metro or non-metro). This exemption is applicable under the old tax regime only.
Enter LTA travel bills (Annual) here to get an exemption as per income tax rules. Make sure to add bills only if you are receiving LTA in your CTC.
Note: LTA exemption is allowed only under the old tax regime and applies only to domestic travel for yourself and your family, twice in a 4-year LTA block.
Enter the interest payment on your home loan after adjusting income from house property. Ensure that this results in a loss, and the value entered here should be negative.
The maximum loss from house property that can be adjusted against salary income is ₹2 lakh in a financial year. Loss can be adjusted only if the house is ready to move in. If the house is under construction, the loss is not adjustable in the same year.
In the case of a rented property, if the interest amount after rental income results in a loss exceeding ₹2 lakh, the excess loss can be carried forward for the next eight years in the Income Tax Return to be adjusted against future house property income.
Enter the income earned from house property, including rental income received from a rented property. If the property is self-occupied, income will be considered as zero, and no tax is applicable.
In the case of a rented property, the total rental income after deducting municipal taxes and standard deductions under Section 24(a) should be entered. The standard deduction is 30% of the net rental income.
If you have a home loan, only the interest portion can be adjusted as a loss under Section 24(b), with a maximum limit of ₹2 lakh per year against salary income.
Enter all other taxable income that is not covered under salary, business, or house property. This includes interest income from savings accounts, fixed deposits, post office deposits, dividends, pension, and any other sources.
Interest income from a savings account is eligible for a deduction of up to ₹10,000 under Section 80TTA, and for senior citizens, fixed deposit interest income up to ₹50,000 is deductible under Section 80TTB.
Gifts received from non-relatives above ₹50,000 in a financial year are taxable under Income From Other Sources. Agricultural income is exempt, but if total income exceeds a certain limit, it may be subject to tax calculations.
Click here to open the Section 80C section and update your PF deduction status. Enter the amount of all eligible investments individually, such as fixed deposits, LIC, PPF, and others, to avail of tax deductions under Section 80C. The maximum deduction limit is ₹1,50,000.
This deduction will be calculated automatically based on the NPS employer contribution field. It is deductible up to 10% of basic salary in the old tax regime and up to 14% of basic salary in the new tax regime.
Enter the deduction amount under Section 80D based on your health insurance premium payments. The maximum deduction allowed is ₹25,000 for self and family if the insured person's age is below 60. For parents aged 60 and above, an additional deduction of up to ₹50,000 is allowed.
Enter the amount contributed to the National Pension System (NPS) under Section 80CCD(1B). This deduction is available for contributions up to ₹50,000 and is over and above the limit of ₹1,50,000 under Section 80C.
Note: This deduction is not allowed under the new tax regime.
Enter the expenses incurred for the medical treatment, training, and rehabilitation of a dependent with a disability. The deduction limit is ₹75,000 for a dependent with a disability and ₹1,25,000 for a dependent with severe disability.
Note: This deduction is not allowed under the new tax regime.
For more details, refer to the official Income Tax Department's Income-tax Act, 1961.
Deduction U/S 80DDB
Enter the amount spent on medical treatment of specified diseases for self or dependents. The maximum deduction is ₹40,000, which increases to ₹1,00,000 for senior citizens.
Note: This deduction is not allowed under the new tax regime.
Enter the interest paid on an education loan taken for higher studies for self, spouse, children, or a student for whom you are a legal guardian. This deduction is available for up to 8 years or until the interest is fully repaid, whichever is earlier.
Note: This deduction is not allowed under the new tax regime.
Enter the interest paid on a home loan for the purchase of a residential property. This deduction is available up to ₹1,50,000 for loans sanctioned between 1st April 2019 and 31st March 2020, subject to certain conditions.
Note: This deduction is not allowed under the new tax regime.
Enter the interest paid on a loan taken for the purchase of an electric vehicle. This deduction is available up to ₹1,50,000 for loans sanctioned between 1st April 2019 and 31st March 2023.
Note: This deduction is not allowed under the new tax regime.
For more details, refer to the official Income Tax Department's Income-tax Act, 1961.
Deduction U/S 80G
Enter the amount donated to specified funds or charitable institutions. Deductions can range from 50% to 100% of the donated amount, depending on the organization, with or without qualifying limits.
Note: Donations exceeding ₹2,000 must be made through modes other than cash to qualify for the deduction. This deduction is not allowed under the new tax regime.
This deduction is available for individuals with a disability, as certified by a medical authority. The deduction amount is ₹75,000 for individuals with a disability (40% or more) and ₹1,25,000 for individuals with a severe disability (80% or more).
Unlike other deductions, no proof of expenses is required. Only a valid disability certificate issued by a recognized medical authority is needed to claim this deduction.
Note: This deduction is not allowed under the new tax regime.
Enter the interest earned from savings bank accounts with banks, cooperative societies, and post offices. A deduction of up to ₹10,000 is allowed under this section for individuals and Hindu Undivided Families (HUFs).
Fixed deposit and recurring deposit interest are not eligible for deduction under this section.
Senior citizens should claim interest deductions under Section 80TTB, which allows deductions up to ₹50,000.
Note: This deduction is not allowed under the new tax regime.
