Calculate income tax for ₹5 lakh annual income. ₹5 lakh income: New regime offers ₹25,000 tax vs old regime which can be zero with investments. Old regime better with investments.
FY 2025-26: Old regime includes ₹50,000 standard deduction + your 80C/80D deductions. New regime allows ₹75,000 standard deduction only — no income tax up to ₹12L (₹12.75L for salaried). Section 87A rebate applied automatically.
Old Regime
New Regime
Tax Savings with New Regime
₹75,400
Recommendation
Choose New Regime to save ₹75,400 in taxes.
₹5 lakh income: New regime offers ₹25,000 tax vs old regime which can be zero with investments. Old regime better with investments.
This ₹5L Annual Income calculator is designed to give you accurate estimates based on your specific financial situation. Simply adjust the input values using the sliders or by entering numbers directly. The results update instantly to show you different scenarios.
All calculations are performed using industry-standard formulas and take into account factors like compounding, interest rates, and time periods to give you the most accurate projections possible.
India's income tax system has become complex with two regimes - old regime with deductions and new regime with lower rates but fewer deductions. This calculator helps you compare both and identify which regime saves you more money. For FY 2025-26, most salaried individuals between ₹10-15 lakhs income find themselves in a dilemma - take the simpler new regime or stick with the old regime and maximize deductions? The right choice can save you ₹30,000-₹50,000 annually! This isn't just about tax savings; it's about making informed financial decisions around your investments in PPF, home loans, health insurance, and more. Use this calculator before making your regime choice and plan your tax-saving investments accordingly.
Enter your annual gross salary including all components - basic, HRA, allowances, bonuses. Add any other income like interest or rental income. For the old regime, input your deductions: Section 80C (PPF, ELSS, life insurance, home loan principal - max ₹1.5 lakhs), Section 80D (health insurance premium), home loan interest (max ₹2 lakhs), HRA, etc. The calculator computes tax under both regimes and shows which is better. Be honest about deductions you'll actually make - don't inflate numbers. Try this exercise: Start with zero deductions to see new regime tax, then add your actual investments to see old regime tax. The side-by-side comparison makes your choice obvious.
The comparison table shows tax liability under both regimes, highlighting the savings. In the new regime, you can't claim most deductions, but tax rates are lower, especially in the ₹5-10 lakh range. In the old regime, deductions can significantly reduce taxable income, but you need to actually invest that money. If the new regime saves you money, great - you have more flexibility in investments. If the old regime is better, ensure you make those investments! Don't just calculate tax - calculate net savings. If old regime saves ₹25,000 in tax but requires ₹1.5 lakh in PPF/ELSS investments you wouldn't otherwise make, is it really beneficial? Remember, you can switch regimes every year if you have no business income.
| Income Slab | Old Regime Rate | New Regime Rate |
|---|---|---|
| Up to ₹2.5L / ₹4L | Nil | Nil |
| ₹2.5 - ₹5 lakhs | 5% | — |
| ₹4 - ₹8 lakhs | 20% | 5% |
| ₹8 - ₹10 lakhs | 20% | 10% |
| ₹10 - ₹12 lakhs | 30% | 10% |
| ₹12 - ₹16 lakhs | 30% | 15% |
| ₹16 - ₹20 lakhs | 30% | 20% |
| ₹20 - ₹24 lakhs | 30% | 25% |
| Above ₹24 lakhs | 30% | 30% |
Ananya, 31, earns ₹12 lakhs annually as a marketing manager. Under the new regime, her tax is ₹71,500. But she already invests ₹1.5 lakhs in PPF (₹80C) and pays ₹2 lakhs home loan interest, with ₹25,000 health insurance. Under the old regime with these deductions, her tax is just ₹40,000 - saving ₹31,500! These investments align with her goals anyway, so old regime is a no-brainer for her. Her colleague Karan earns ₹8 lakhs with minimal investments - new regime saves him money. The calculator helped both make the right choice. Ananya now plans her investments in April itself to maximize tax benefits throughout the year, rather than scrambling in March.
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Not Financial Advice: This calculator provides estimates for educational and informational purposes only. It is not financial, investment, tax, or legal advice. Actual returns may vary significantly based on market conditions.
SEBI Compliance: Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. Past performance is not indicative of future returns.
Consult a Professional: We strongly recommend consulting with a SEBI-registered investment advisor before making any investment decisions.
This calculator is provided as-is without warranties. CalcReady.com is not a SEBI-registered investment advisor and does not offer personalized investment recommendations.