Old vs New Regime income tax comparison. CTC to in-hand salary with EPF, ESI and Professional Tax. Accurate. Instant. No signup required.
IndiataxCalculator.net helps salaried professionals, freelancers and business owners across India calculate their exact income tax liability and in-hand salary — instantly, accurately, and for free. Our calculator covers all deductions under the Income Tax Act 1961, EPF and ESI rules, and state-wise Professional Tax rates.
Use the Income Tax Calculator to compare Old vs New Tax Regime and find out exactly how much you save. Use the Salary Calculator to see what actually gets credited to your bank account from your CTC package.
0% up to ₹3L | 5% up to ₹6L | 10% up to ₹9L | 15% up to ₹12L | 20% up to ₹15L | 30% above ₹15L
0% up to ₹2.5L | 5% up to ₹5L | 20% up to ₹10L | 30% above ₹10L. Claim 80C, HRA, 80D and more.
New Regime: Zero tax if taxable income ≤ ₹7 lakh (rebate ₹25,000)
Old Regime: Zero tax if taxable income ≤ ₹5 lakh (rebate ₹12,500)
Typically 65% to 78% of CTC is your take-home. Employer PF, gratuity and your TDS reduce the gap between CTC and in-hand salary.
How to use: Enter your annual gross income below. For Old Regime, fill in your deductions — 80C investments (PPF, ELSS, EPF), HRA, health insurance premium, home loan interest. Select Compare Both to see instantly which regime saves you more tax. All calculations follow Income Tax Act 1961 provisions.
Select Compare Both to instantly see which regime saves more for your income profile.
Results update as you type. Based on latest Income Tax Act provisions.
Reference slabs for both regimes as per the latest Finance Act. Surcharge and 4% cess apply additionally.
| Income Range | Tax Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 to ₹6,00,000 | 5% |
| ₹6,00,001 to ₹9,00,000 | 10% |
| ₹9,00,001 to ₹12,00,000 | 15% |
| ₹12,00,001 to ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
| Income Range | Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 to ₹5,00,000 | 5% |
| ₹5,00,001 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
How to use: Enter your annual CTC (Cost to Company) and adjust the basic salary percentage. Add your monthly rent to calculate HRA exemption. Toggle EPF, ESI and select your state for Professional Tax. The calculator shows your exact monthly in-hand salary and complete deduction breakdown as per EPF Act, ESI Act and Income Tax Act.
Determines your monthly TDS deduction. New Regime is the default from FY 2023-24.
Follows EPF Act, ESI Act and Income Tax Act — latest provisions.
Understanding your salary structure for better financial planning.
Understanding income tax is essential for every working Indian. This guide covers everything you need to know — from tax slabs and deductions to the difference between Old and New Tax Regime — explained in simple language so you can make the right financial decisions.
Income tax is a direct tax levied by the Government of India on the income earned by individuals, Hindu Undivided Families (HUFs), companies, and other entities during a financial year. For salaried individuals, it is deducted monthly at source by the employer as TDS (Tax Deducted at Source) and paid directly to the government on your behalf.
You are required to pay income tax if your gross total income exceeds the basic exemption limit — which is ₹2.5 lakh under the Old Regime and ₹3 lakh under the New Regime. However, with the Section 87A rebate, effective tax liability is zero for incomes up to ₹5 lakh (Old) and ₹7 lakh (New).
Every taxpayer must file an Income Tax Return (ITR) annually by July 31st if their income exceeds the basic exemption limit, even if the tax payable is zero due to rebates or deductions.
Since FY 2020-21, Indian taxpayers have two options — the Old Tax Regime and the New Tax Regime. The New Regime became the default from FY 2023-24 for salaried employees.
Old Regime: Lower slab rates but you can claim all deductions and exemptions — Section 80C (up to ₹1.5L), HRA exemption, 80D health insurance, home loan interest (Section 24b), NPS (80CCD), education loan interest (80E), and more. Best for those with significant investments and deductions.
New Regime: Lower slab rates with simplified structure. Standard deduction of ₹75,000 is available. No other deductions allowed. Best for those who are early in career, have minimal investments, or earn below ₹7 lakh (zero tax via 87A rebate).
Use the calculator above to compare both regimes instantly with your exact income and deduction numbers.
| Factor | Old Tax Regime | New Tax Regime |
|---|---|---|
| Basic Exemption Limit | ₹2.5 lakh (Below 60), ₹3L (Senior), ₹5L (Super Senior) | ₹3 lakh (all ages) |
| Standard Deduction | ₹50,000 | ₹75,000 |
| Section 80C Deduction | Yes — up to ₹1,50,000 | Not available |
| HRA Exemption | Yes — least of 3 conditions | Not available |
| Section 80D (Health Insurance) | Yes — up to ₹25,000 / ₹50,000 | Not available |
| Home Loan Interest (Sec 24b) | Yes — up to ₹2,00,000 | Not available |
| NPS Deduction (80CCD 1B) | Yes — up to ₹50,000 | Not available |
| Section 87A Rebate | Up to ₹12,500 if income ≤ ₹5L | Up to ₹25,000 if income ≤ ₹7L |
| Default Regime | No (opt-in required) | Yes (from FY 2023-24) |
| Best for | High deductions — investments, HRA, home loan | Low deductions — early career, minimal investments |
Section 80C is the most widely used tax-saving provision in India. It allows a deduction of up to ₹1,50,000 from your taxable income under the Old Regime. Here are all the investments and expenses that qualify:
House Rent Allowance (HRA) is a component of your salary that helps you save tax if you live in a rented house. The exemption is calculated as the minimum of three conditions:
The lowest of these three amounts is exempt from tax. The remaining HRA (if any) is added to your taxable income.
Important: You cannot claim HRA exemption if you own the house you live in, or if no rent is paid. If monthly rent exceeds ₹8,333 (i.e., ₹1 lakh annually), you must provide the landlord's PAN to your employer. HRA is not available under the New Tax Regime.
One of the most common confusions for salaried employees in India is the difference between CTC (Cost to Company) and the actual amount credited to their bank account (in-hand salary). These can differ by 20% to 35%.
CTC includes: Basic salary, HRA, Special Allowance, LTA, variable pay, AND employer's PF contribution (12% of basic), employer's ESI contribution (3.25%), and gratuity provision (4.81% of basic). These employer costs are included in CTC but never paid to you directly.
From Gross Salary, these are deducted:
Typically, your in-hand salary is 65% to 78% of CTC depending on your income level and deductions claimed.
Professional Tax (PT) is a state-level tax on employment income. It is deducted monthly by your employer and remitted to the state government. The maximum PT allowed is ₹2,500 per year as per the Constitution of India. PT paid is deductible from your taxable income under the Old Regime.
States that levy Professional Tax include Karnataka (₹200/month), Maharashtra (₹200/month), West Bengal (₹200/month), Telangana, Andhra Pradesh, Tamil Nadu, Gujarat, Madhya Pradesh, Odisha, Kerala, and Assam.
States with no Professional Tax: Delhi, Uttar Pradesh, Rajasthan, Haryana, Punjab, Bihar, Himachal Pradesh, Jammu and Kashmir, Uttarakhand, Jharkhand, and Chhattisgarh. If you work in these states, no PT is deducted from your salary.
The Employee Provident Fund (EPF) is a retirement savings scheme managed by the EPFO (Employees Provident Fund Organisation). It is mandatory for all organisations with 20 or more employees where the employee's basic salary is ₹15,000 or below per month.
How contributions work: The employee contributes 12% of basic salary. The employer also contributes 12% — but this is split as 3.67% to the EPF account and 8.33% to the EPS (Employee Pension Scheme), subject to a ceiling of ₹1,250 per month for EPS.
Interest rate: 8.25% per annum (current rate declared by EPFO). Interest earned is tax-free.
Tax benefits: Employee EPF contribution qualifies under Section 80C (up to ₹1.5L limit). The entire corpus — principal + interest + employer contribution — is tax-free on withdrawal after 5 continuous years of service.
Type your annual gross income exactly — the total salary before any deductions or taxes
Choose below 60, Senior Citizen (60-80), or Super Senior (80+) — different slabs apply
Fill in your 80C investments, HRA, health insurance premium, home loan interest and other deductions
Select Compare Both to instantly see which regime saves you more money with exact rupee savings
If your total tax liability exceeds ₹10,000 in a year (after TDS), you must pay advance tax in instalments:
Non-payment of advance tax attracts interest under Section 234B and 234C. Salaried employees whose full tax is deducted as TDS are generally exempt from advance tax.