Breakdown
How it works
New regime slabs: nil to ₹4L, 5% to ₹8L, 10% to ₹12L, 15% to ₹16L, 20% to ₹20L, 25% to ₹24L, 30% above, with a ₹60,000 rebate that wipes out tax up to ₹12L of taxable income (marginal relief just above). Old regime keeps the 2.5L/5L/10L slabs but allows deductions (80C, 80D, HRA, home loan interest, NPS). 4% cess applies to both; surcharge from ₹50L.
Formula
Worked example
₹15 lakh salary, new regime: taxable ₹14.25L → 20,000 + 40,000 + 33,750 = ₹93,750 + cess = ₹97,500 (₹8,125 a month). Old regime with ₹2L deductions: taxable ₹12.5L → ₹1,87,500 + cess = ₹1,95,000 — new regime saves ₹97,500.
Frequently asked questions
Which regime is better for me?
New regime for most salaried people without large deductions; old regime only if your deductions (80C, HRA, home loan interest, NPS) exceed roughly ₹4–5 lakh on a ₹15–25 lakh salary. The calculator shows both.
Is income up to ₹12 lakh really tax-free?
Yes under the new regime thanks to the ₹60,000 rebate under Section 87A — ₹12.75 lakh for salaried after the standard deduction. One rupee above and the rebate goes, softened by marginal relief.
Do NRIs in the Gulf pay Indian tax on salary?
Not on salary earned abroad while non-resident (fewer than 182 days in India). Indian income — rent, interest on NRO deposits, capital gains — remains taxable in India, and NRIs do not get the 87A rebate.