Income Tax Estimator
Compare old and new regime tax on your salary — with calm explanations and trade-offs, not a recommendation to pick one.
Your tax comparison is ready
Review regime trade-offs below — Salryd never recommends which regime to choose.
At a glance
Your tax regime comparison
New regime yields ~₹1,48,061 more in-hand annually
Old regime: ₹9,77,493/yr · New regime: ₹11,25,554/yr
Regime choice, rent, and investments can significantly change annual tax — and therefore in-hand pay.
Simplicity vs deductions
The new regime has fewer declarations and simpler slabs. The old regime rewards rent, investments, and certain deductions — if you use them.
Immediate next steps
Worth clarifying
- Regime comparison is illustrative — your actual filing may differ.
- Salryd never recommends a tax regime; discuss with a qualified advisor if unsure.
Old vs new regime
Side-by-side estimates from the same salary — facts only, not a recommendation.
New regime
- Estimated annual tax
- ₹0
- Estimated monthly tax (TDS)
- ₹0
- Estimated monthly in-hand
- ₹93,796
- Net taxable income
- ₹10,74,554
- Standard deduction
- ₹75,000
Old regime
- Estimated annual tax
- ₹1,48,061
- Estimated monthly tax (TDS)
- ₹12,338
- Estimated monthly in-hand
- ₹81,458
- Net taxable income
- ₹10,99,554
- Standard deduction
- ₹50,000
Annual tax difference (new minus old): -₹1,48,061. Monthly in-hand difference: ₹12,338. Lower tax does not automatically mean you should choose that regime — see trade-offs below.
Understanding income tax
Income tax is deducted at source from your salary based on your taxable income and chosen tax regime — old or new.
Why it matters: Regime choice, rent, and investments can significantly change annual tax — and therefore in-hand pay.
Why tax changes
What drives the gap between these two estimates.
Regime choice, rent, and investments can significantly change annual tax — and therefore in-hand pay.
New and old regimes use different slab rates, standard deductions, and rebate thresholds.
Which salary components affect tax
From Salryd's compensation knowledge — not generic tax advice.
Basic salary
The core fixed component of CTC — PF, gratuity, and many statutory benefits are calculated on Basic, not total CTC.
Affects: both regime
HRA & rent
Under the old regime, eligible HRA exemption reduces taxable income. The new regime does not offer HRA exemption.
Affects: old regime
Standard deduction
Both regimes allow a standard deduction from gross salary — the amount differs between new and old.
Affects: both regime
Variable pay / bonus
Performance-linked compensation — bonus, incentives, or variable components paid based on company or individual results.
Affects: both regime
Common misconceptions
Calm clarifications — not legal or tax filing advice.
The new regime is always better because rates are lower.
Lower slab rates do not help if you would claim significant HRA exemption or 80C/80D under the old regime — this estimate covers HRA only, not full 80C.
CTC divided by 12 is close to in-hand.
PF, professional tax, and income tax sit between gross and net — regime choice can change monthly take-home by thousands.
You can switch regimes every month.
Most employers lock regime choice for the financial year at declaration time — confirm HR policy before assuming you can change later.
Salary implications
How regime choice connects to take-home pay.
A lower tax bill increases monthly in-hand if everything else stays the same.
Higher Basic increases PF and gratuity — which can reduce taxable gross but also change employer cost allocations.
Stable guaranteed income supports budgeting for rent, EMIs, and family expenses — especially in early career years.
This estimate does not include 80C, 80D, or home loan deductions available only under the old regime.
Trade-offs to consider
We do not recommend a regime — these are patterns worth understanding.
Simplicity vs deductions
The new regime has fewer declarations and simpler slabs. The old regime rewards rent, investments, and certain deductions — if you use them.
Predictability vs optimisation
More stability often means less upside from performance bonuses — a trade many professionals accept consciously. Regime choice affects how predictable your monthly take-home feels.
Short-term cash flow vs long-term planning
A regime that lowers tax this year improves cash flow now. Some professionals still choose old regime for deductions they consistently claim.
Who often explores the old regime
- Rent payers in metro cities who may qualify for meaningful HRA exemption.
- People with consistent 80C/80D investments not modelled here — worth a fuller calculation.
- Those with home loan interest deductions under the old regime.
Who often explores the new regime
- Rent-free households with limited old-regime deductions.
- Professionals who prefer fewer proofs and simpler year-end reconciliation.
- Mid-range salaries where new-regime rebate thresholds may apply.
Questions worth asking HR
- When is the deadline to declare my regime choice for this financial year?
- Can I change regime next year if my rent or investments change?
- Does HR use my declared regime for monthly TDS or only at year-end?
- What share of CTC is guaranteed versus performance-linked?
- If I have significant 80C investments, can HR share a fuller old-regime estimate?
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Frequently asked questions
Does Salryd recommend old or new tax regime?
No. Salryd shows side-by-side estimates and explains trade-offs. The better regime depends on your rent, investments, and salary breakup — only you can decide with HR.
Which deductions are included?
This estimate includes standard deduction and HRA exemption (old regime only). It does not model 80C, 80D, or home loan interest — confirm a fuller picture with HR or a tax professional.
Is my salary data stored?
No. Calculations run in your browser. Inputs may be saved locally on your device only.
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