Are 80C deductions allowed in the new regime?

No. Most Chapter VI-A deductions, including 80C, 80D and HRA, are not allowed under the new regime. Only the standard deduction of ₹75,000 and a few specific exemptions remain.

Which tax regime should I choose?

Compare both with your actual deductions. The new regime wins for most salaried people with deductions below roughly ₹3–4 lakh; above that the old regime can win. Use the break-even calculator to find your exact crossover.

Is income up to ₹12 lakh really tax-free?

Yes — under the new regime, after the ₹75,000 standard deduction, the tax on ₹12 lakh gross is ₹60,000, fully rebated under Section 87A. Earn ₹1 more and marginal relief caps the tax at the excess over ₹12 lakh.

Do I need to pay the 4% cess separately?

No — the 4% health and education cess is added to your tax after rebate and relief. It is included in the final figure shown; you do not pay it as a separate challan.

When does surcharge apply?

Surcharge applies above ₹50 lakh of taxable income (10% up to ₹1 crore, higher above). Most calculators on this site omit surcharge; if your income exceeds ₹50 lakh, add it manually or consult a CA.

Does the Old vs New Tax Regime Break-Even store my data anywhere?

No. Everything runs in your browser. Nothing you type is sent to a server, stored in a database, or used for advertising. You can disconnect from the internet after the page loads and it still works.

What is the difference between the Old vs New Tax Regime Break-Even and 44ADA Presumptive Tax Calculator (Freelancers)?

The Old vs New Tax Regime Break-Even focuses on tax computation and regime comparison; the 44ADA Presumptive Tax Calculator (Freelancers) is for a different but adjacent decision. Use both together — many people run the Old vs New Tax Regime Break-Even first, then check 44ADA Presumptive Tax Calculator (Freelancers) to see the full picture.

How accurate is the Old vs New Tax Regime Break-Even compared to a bank or CA's number?

The math is identical to what banks, CAs and AMCs use — reducing balance for loans, compound interest for investments, current slab rates for tax. Differences usually come from fees, rounding, or a different assumption. If a quote differs by more than rounding, ask for the breakdown.

Should I use the Old vs New Tax Regime Break-Even before or after talking to an adviser?

Use it before — that is the point. Run the numbers, understand the range, and go into the conversation knowing what to expect. Bring the printed breakdown with you; it makes it much harder for anyone to quote you an unfair number.

Why does my result change when I adjust the rate?

The rate affects the result because it changes the compounding or slab calculation directly. A small move in rate can compound to a large difference over time — run it at both a conservative and aggressive value to see the range.

What is the difference between the Old vs New Tax Regime Break-Even and Salary Hike / Increment Calculator?

The Old vs New Tax Regime Break-Even focuses on tax computation and regime comparison; the Salary Hike / Increment Calculator is for a different but adjacent decision. Use both together — many people run the Old vs New Tax Regime Break-Even first, then check Salary Hike / Increment Calculator to see the full picture. On this Old vs New Tax Regime Break-Even page, try adjusting the gross annual income input — it is the quickest way to see how the final figure moves for your own numbers.

Is the default gross annual income still correct for October 2026?

The default reflects the latest notified rate as of October 2026. Rates change — especially for government small savings, which are reset quarterly, and for bank loans linked to the repo rate. Always verify the current rate on the official source before making a decision. On this Old vs New Tax Regime Break-Even page, try adjusting the gross annual income input — it is the quickest way to see how the final figure moves for your own numbers.

Does the Old vs New Tax Regime Break-Even include tax and cess?

Tax and cess are included where relevant to this calculator. The assumption line at the bottom states exactly which taxes and rates are applied. Surcharge above ₹50 lakh income is generally not modelled — if that applies to you, add it separately or consult a professional. On this Old vs New Tax Regime Break-Even page, try adjusting the gross annual income input — it is the quickest way to see how the final figure moves for your own numbers.

Should I use the Old vs New Tax Regime Break-Even before or after talking to an adviser?

Use it before — that is the point. Run the numbers, understand the range, and go into the conversation knowing what to expect. Bring the printed breakdown with you; it makes it much harder for anyone to quote you an unfair number. On this Old vs New Tax Regime Break-Even page, try adjusting the gross annual income input — it is the quickest way to see how the final figure moves for your own numbers.

What happens if I enter a gross annual income higher than the default?

A higher gross annual income increases the final figure in the same direction. The relationship is compounded over time for long tenures, and linear for one-off calculations — you can see the exact effect by changing the input and watching the breakdown. There is no upper limit in the calculator; it will compute any figure you enter. On this Old vs New Tax Regime Break-Even page, try adjusting the gross annual income input — it is the quickest way to see how the final figure moves for your own numbers.

Income Tax & Salary

Old vs New Tax Regime Break-Even Calculator

Exact deductions needed for the Old Tax Regime to beat the New Regime for your income.

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How this Old vs New Tax Regime Break-Even Calculator works

What is Old vs New Break-Even?

The Old vs New Break-Even is designed to help Indian taxpayers navigate the complex web of Income Tax rules, deductions, exemptions, and rebates that apply for FY 2026-27. Personal finance in India has become significantly more nuanced with the introduction of the New Tax Regime as the default option, changes to Section 80C limits, and varying slab rates. Making the right decisions about regime choice, investment allocation, and claimable deductions can save you tens of thousands of rupees each year.

Tax planning is not just about minimising this year's bill — it is about structuring your finances in a way that aligns with your long-term goals while remaining fully compliant with the Income Tax Act. This calculator gives you the numerical clarity you need to make those decisions confidently, whether you are a salaried employee, self-employed professional, or business owner.

How to Use This Old vs New Regime Break-Even Calculator

Enter your values. Adjust the sliders or type directly into the number fields. All fields use Indian Rupees (₹) and percentages where applicable. The Old vs New Regime Break-Even Calculator updates instantly as you change any value — no separate calculate button needed.
Focus on the highlighted result. The result card shown in the accent colour is the primary output of this calculation. Read the supporting tiles for context.
Adjust the key inputs to see how sensitive the Old vs New Regime Break-Even Calculator result is.
Try a "best case" and "worst case" scenario to understand the range of outcomes.
Use the print button to save a copy of your calculation for future reference.
Save or print. Use the "Save / Print as PDF" button to keep a record of your calculation for your personal files or to share with your financial adviser.

Formula & Calculation Logic

Old vs New Break-Even Logic: This calculator uses standard financial formulae appropriate for the calculation type. Inputs are processed in real-time using client-side JavaScript, with results displayed instantly. All calculations follow Indian regulatory conventions and financial year rules where applicable. The specific mathematical approach depends on the nature of the calculation — compound interest for growth projections, amortisation schedules for loans, statutory formulae for government schemes, and current tax slab rates for tax estimates.

All calculations on FinCal Hub run entirely in your browser using JavaScript. Your inputs are never sent to a server, and nothing you type is stored anywhere. This approach ensures your financial privacy while giving you instant results. The calculations follow Indian numbering conventions (lakhs and crores) and regulatory rules applicable for FY 2026-27 where relevant.

Where a calculator involves simplifying assumptions — such as constant returns on market-linked investments or a fixed interest rate for the full tenure of a floating-rate loan — these are clearly stated in the assumptions section below the results. Financial planning always involves uncertainty, and our calculators are designed to give you a reliable starting estimate rather than a guaranteed prediction.

Real-Life INR Examples

Example 1 — Regime comparison: A salaried individual earning ₹12 lakh per annum with ₹2 lakh in total deductions (80C + 80D + HRA) would pay approximately ₹54,600 in tax under the Old Regime versus roughly ₹46,800 under the New Regime — making the New Regime slightly better in this case. If deductions increase to ₹3 lakh, the Old Regime becomes more favourable.

Example 2 — Section 80C benefit: Someone in the 20% tax slab (plus 4% cess) who maximises the full ₹1.5 lakh Section 80C limit saves ₹31,200 in tax each year. Over a 30-year career, this recurring annual tax saving invested at 10% would itself compound to over ₹50 lakh.

Example 3 — HRA claim: An employee in Mumbai with ₹40,000 basic salary, ₹20,000 HRA, and paying ₹18,000 actual rent qualifies for an HRA exemption of approximately ₹14,000 per month (rent minus 10% of basic is the binding constraint here). This saves roughly ₹3,500 per month in tax for someone in the 20% slab.

Common Mistakes to Avoid

Waiting until the last week of March to make tax-saving investments. This leads to rushed decisions, buying unsuitable products pushed by agents earning commissions, and potentially missing the deadline entirely.
Buying expensive insurance policies purely for tax saving. Traditional endowment policies often deliver 4–6% internal returns — barely beating inflation. Separate your insurance need from your investment need: buy a pure term plan for protection and invest separately.
Forgetting to file Form 15G/15H if you are below the taxable threshold. Without these forms, banks will deduct TDS on your FD interest even though you owe no tax, forcing you to file a return just to claim a refund.
Choosing the wrong tax regime based on a friend's advice rather than your actual numbers. The break-even point depends heavily on your specific deductions. Run the numbers yourself using an income tax calculator.
Missing the ITR filing deadline. Late filing attracts fees under Section 234F up to ₹5,000, and you lose the ability to carry forward capital losses to future years.

When to Use (and When Not To)

Use the Old vs New Regime Break-Even Calculator when:

You want to estimate your tax liability for FY 2026-27 using the Old vs New Regime Break-Even Calculator
You are deciding between the Old and New Tax Regimes and need personalised numbers
You want to see how specific investments or deductions can reduce your tax bill
You are evaluating a job offer or salary change and want to know the net in-hand impact

Do not rely solely on this Old vs New Regime Break-Even Calculator when:

The decision involves complex legal or regulatory factors requiring professional expertise
Large sums of money or irreversible commitments are at stake
Your personal situation has unusual features that a general calculator cannot capture
You need personalised advice considering your complete financial picture

In these cases, use the Old vs New Regime Break-Even Calculator as a starting point, then consult a qualified CA, SEBI-registered investment adviser, or financial planner before deciding.

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