New regime still stays lower
Your current deductions are valid, but they are not large enough to offset the old regime slab rates for this case.
new
Lower annual tax by: ₹1,02,295
FY 2025-26Salaried usersOld vs New Regime
Tax Optimizer for Indian Salaried Users
Enter the deductions and exemptions you can actually claim, compare both regimes, and see which one currently lowers your tax without speculative assumptions.
Instantly calculates your take-home tax from CTC
Shows exactly how much more you can save
Backed by Income Tax Act — file with confidence
Customize your inputs below
The page opens with a realistic default scenario so you see an answer immediately. Scroll down and adjust your salary, HRA, deductions, and NPS to match your case.
Last updated: March 2026|Regulatory reference: Income Tax Act, 1961: Section 115BAC, Section 87A, Section 80C, Section 80D, Section 80CCD and Section 24(b) — Income Tax Department, India
Quick Presets
Start from a realistic salaried profile, then fine-tune the numbers instead of clearing every field manually.
Salary Foundation
Step 1: Enter your CTC and salary structure details that affect PF, gross salary, and downstream tax limits.
= Eighteen Lakh Rupees
Used to derive gross salary and employee PF for the comparison.
Preset selected: 50% basic. Switch to Custom only if your salary structure differs.
Age matters for old-regime slabs and 80D limits.
Optional. Use for simple slab-taxed income, not capital gains or business income.
Deductions You Can Actually Claim
Step 2: Enter only the deduction and exemption amounts you can genuinely support with records.
Section 80C entry mode
Use the simple total if you already know your number, or switch to advanced mode to split PPF, ELSS, LIC, principal repayment, and tuition.
= Fifty Thousand Rupees
PPF, ELSS, LIC premium, home-loan principal, tuition, and similar 80C items. Employee PF is auto-derived separately.
Additional 80C entered₹50,000
80C / 80CCE used with auto-derived EPF₹71,600
Remaining room in the 80C / 80CCE bucket₹78,400
= Twenty Five Thousand Rupees
Limit for your age bucket: ₹25,000.
Parents limit: ₹25,000 based on the toggle below.
HRA And Home Loan
Step 3: Enter HRA received, annual rent, and self-occupied home-loan interest so the optimizer can derive the old-regime housing benefit correctly.
= Four Lakh Fifty Thousand Rupees
Use the HRA component from your salary structure or Form 16, not the exemption amount.
= Three Lakh Rupees
Use actual annual rent paid for the year. The optimizer derives HRA exemption from this.
The model applies the standard self-occupied Section 24(b) cap.
Derived HRA exemption
HRA received
₹4,50,000
Rent minus 10% basic
₹2,10,000
City cap on salary
₹4,50,000
Exemption used
₹2,10,000
The optimizer uses the least of HRA received, rent paid minus 10% of salary basis, and the metro or non-metro salary cap.
NPS And Employer Benefits
Step 4: Add NPS contributions and old-regime salary exemptions that can materially change the recommendation.
Modeled across 80CCD(1) and 80CCD(1B) inside the old regime only.
Employer contributions are checked under 80CCD(2) in both regimes.
Enter only the amount that is actually claimable based on your travel and payroll records.
Use the annual tax-exempt value already supported by your employer structure.
Use only exemptions you can genuinely support, not allowances that may still be taxable.
Recommended Today
Result: What you should pick based on the values currently entered.
Recommended regime
New Regime
Estimated annual tax: ₹1,46,307
Summary
New regime is lower by ₹1,02,295 because your current deduction pool does not offset the higher old-regime slab rates.
Savings vs other regime
₹1,02,295
About ₹8,525 per month
Taxable income
₹17,03,400
Alternative: ₹14,21,800
Gross salary from CTC
₹17,78,400
Employee PF auto-derived: ₹21,600
Quick planning shortcut
Old-regime deduction pool
₹3,06,600
Rough breakeven band
₹3,75,000
Status
Below by ₹68,400
This shortcut is only a rough planning aid. The actual recommendation above comes from exact tax calculation under both regimes.
Side-by-Side Result
Detail: Numbers side by side for both regimes.
Old regime tax₹2,48,602
New regime tax₹1,46,307
Total deductions used in old₹3,56,600
Total deductions used in new₹75,000
Regime Comparison
The table below shows the actual figures used in the recommendation.
| Metric | Old Regime | New Regime |
|---|---|---|
| Taxable income | ₹14,21,800 | ₹17,03,400 |
| Tax before rebate | ₹2,39,040 | ₹1,40,680 |
| Section 87A rebate | -₹0 | -₹0 |
| Cess | ₹9,562 | ₹5,627 |
| Total tax | ₹2,48,602 | ₹1,46,307 |
Deduction Use Snapshot
Headroom is shown explicitly so you can separate legal eligibility from affordability.
80C / 80CCE used
₹71,600
80C / 80CCE headroom
₹78,400
| Deduction | Old used | New used |
|---|---|---|
Standard deduction Entered: ₹75,000 | ₹50,000 | ₹75,000 |
Employee PF + Section 80C Entered: ₹71,600 | Cap: ₹1,50,000 | ₹71,600 | ₹0 |
Section 80D: Self and family Entered: ₹25,000 | Cap: ₹25,000 | ₹25,000 | ₹0 |
Section 80D: Parents Entered: ₹0 | Cap: ₹25,000 | ₹0 | ₹0 |
Derived HRA exemption Entered: ₹2,10,000 | ₹2,10,000 | ₹0 |
Section 24(b) home-loan interest Entered: ₹0 | Cap: ₹2,00,000 | ₹0 | ₹0 |
Employee NPS: 80CCD(1) + 80CCD(1B) Entered: ₹0 | ₹0 | ₹0 |
Employer NPS: 80CCD(2) Entered: ₹0 | ₹0 | ₹0 |
LTA claimed Entered: ₹0 | ₹0 | ₹0 |
Meal benefit Entered: ₹0 | ₹0 | ₹0 |
Other employer exemptions Entered: ₹0 | ₹0 | ₹0 |
Optimizer Insights
These notes explain the recommendation in plain language instead of raw debug-style output.
Unused Section 80C room remains
This is deduction room only. The optimizer does not assume extra investments or premiums that you have not entered.
old
Unused 80C room: ₹78,400
HRA helps only in the old regime
Your HRA exemption is being derived from HRA received, annual rent paid, and the metro or non-metro cap. Keep rent proofs and salary-structure support ready.
old
Derived HRA exemption: ₹2,10,000
Your deduction pool is below the rough old-regime band
This shortcut often points toward the new regime for salaried users, but the final recommendation here is still based on exact tax calculation.
new
Rough deduction band: ₹3,75,000
Income Tax Calculator
Use the full worksheet when you need a broader income-tax breakdown beyond this optimization flow.
Open calculator →HRA Calculator
Estimate the HRA exemption amount first if you only know rent paid and salary components.
Open calculator →Salary Calculator
Check take-home salary, PF, and salary structure separately if your CTC breakup is unclear.
Open calculator →NPS Calculator
Explore long-term NPS contribution outcomes separately if you want planning beyond the tax deduction view.
Open calculator →Official checks
Cross-check your final numbers with official references before filing.
Before you trust the result
Use actual payroll and proof-backed numbers instead of rough guesses, especially for HRA received, annual rent, and home-loan interest.
Keep employer NPS separate from your own NPS contribution because the law treats them differently.
If your income includes capital gains, ESOP events, or business income, use the full tax calculator or a professional review.
Illustrative estimates only. Verify your final tax position with Form 16, official utilities, and a qualified tax professional where needed.
Frequently Asked Questions
These answers are written for tax saving searches around old vs new regime for salaried employees, 80C 80D NPS tax saving, and how to reduce taxable income legally.
Which is better for tax saving: old vs new regime for salaried employees?
This tax optimizer compares both regimes directly for salaried employees. If your tax saving deductions such as HRA, 80C, 80D, home-loan interest, and NPS are substantial, the old regime can save more. If those deductions are light, the new regime is often better.
How does this tax saving calculator use 80C, 80D and NPS?
The calculator uses the 80C, 80D, and NPS values you actually enter and compares their effect across old and new regimes. It separately handles 80D for self and family and 80D for parents, and it shows remaining room separately so you can see tax saving potential without assuming future investments automatically.
How can I reduce taxable income legally under the old regime?
For salaried taxpayers, legal ways to reduce taxable income usually include standard deduction, HRA exemption where eligible, Section 80C investments, Section 80D health insurance, self-occupied home-loan interest, and eligible NPS deductions. This optimizer focuses on those common tax saving levers.
Do I need to know my HRA exemption before using this tax optimizer?
No. You can enter annual HRA received, annual rent paid, and whether you live in a metro or non-metro city. The optimizer derives the HRA exemption instead of asking you to know that figure in advance.
Does this tax saving optimizer handle every income type?
No. This version is intentionally built for salaried users with slab-taxed income. It does not optimize capital gains, business income, or more complex filing situations, so the recommendation stays transparent and easier to verify.
Is this tax saving recommendation backed by official rules?
Yes, the recommendation is built around Income Tax Act rules used in the app’s tax engine, but you should still verify your final position with the Income Tax Department portal, official tax calculator, Form 16, and a qualified tax professional where needed.