Tax Planning With Online Calculators — Old vs New Regime, Deductions, and HRA
Use free tax calculators to compare old vs new regime, estimate deductions under 80C/80D, calculate HRA exemption, and plan your tax-saving investments.
Tax planning in India comes down to one decision: old regime or new regime? The answer depends entirely on your deductions. If you have significant deductions (home loan, HRA, 80C investments, health insurance), the old regime often saves more. If your deductions are minimal, the new regime's lower rates win.
Calculators take the guesswork out. Here's how to use them at CalcHub.
Old vs New Regime: Side-by-Side
FY 2025-26 Tax Slabs:| Income Slab | Old Regime | New Regime |
|---|---|---|
| Up to ₹3,00,000 | Nil | Nil |
| ₹3–6 lakh | 5% | 5% |
| ₹6–9 lakh | 20% | 10% |
| ₹9–12 lakh | 20% | 15% |
| ₹12–15 lakh | 30% | 20% |
| Above ₹15 lakh | 30% | 30% |
When Old Regime Wins
If your total deductions exceed ₹3–4 lakh, the old regime usually saves more. Common deductions:
| Deduction | Section | Max Limit |
|---|---|---|
| EPF, PPF, ELSS, life insurance | 80C | ₹1,50,000 |
| Health insurance (self + family) | 80D | ₹25,000–₹1,00,000 |
| Home loan interest | 24(b) | ₹2,00,000 |
| HRA exemption | 10(13A) | Varies |
| NPS contribution | 80CCD(1B) | ₹50,000 |
| Education loan interest | 80E | No limit |
- 80C: ₹1,50,000 (EPF + ELSS)
- 80D: ₹25,000 (health insurance)
- HRA: ₹1,80,000
- Home loan interest: ₹2,00,000
- NPS: ₹50,000
- Standard deduction: ₹50,000
- Total deductions: ₹6,55,000
When New Regime Wins
If you rent a cheap apartment, don't have a home loan, and your only deduction is EPF under 80C, the new regime's lower rates win.
Example: ₹12 LPA with minimal deductions- 80C: ₹1,00,000 (EPF only)
- Standard deduction: ₹50,000
- No HRA claim, no home loan
- Total deductions: ₹1,50,000
HRA Exemption Calculator
HRA exemption is the minimum of three values:
- Actual HRA received
- 50% of basic salary (metro) or 40% (non-metro)
- Rent paid minus 10% of basic salary
Example: Basic salary ₹50,000/month, HRA ₹25,000/month, rent ₹20,000/month, metro city:
- Actual HRA: ₹25,000
- 50% of basic: ₹25,000
- Rent − 10% of basic: ₹20,000 − ₹5,000 = ₹15,000
Exemption: ₹15,000/month (₹1,80,000/year). The rest (₹10,000/month) is taxable.
→ Use the CalcHub Tax Calculator to compute this instantly.
Section 80C Planning
You have ₹1,50,000 to allocate across 80C instruments. Here's a practical order:
- EPF — already deducted from salary (12% of basic). If basic is ₹50,000/month, that's ₹6,00,000/year × 12% = ₹72,000.
- ELSS mutual funds — best returns among 80C options, 3-year lock-in. Allocate the remaining ₹78,000 here.
- PPF — if you want guaranteed returns (currently ~7.1%) with 15-year lock-in.
- Life insurance premium — only if you genuinely need the coverage, not as a tax-saving instrument.
Tax-Saving Investment Returns Comparison
| Instrument | Expected Return | Lock-in | Tax on Returns |
|---|---|---|---|
| ELSS | 10–14% (equity) | 3 years | LTCG above ₹1.25 lakh at 12.5% |
| PPF | 7.1% (fixed) | 15 years | Fully exempt |
| NPS | 8–12% (mixed) | Till 60 | Partial tax on withdrawal |
| Tax-saver FD | 7–7.5% (fixed) | 5 years | Fully taxable |
| ULIP | Varies | 5 years | Exempt (conditions apply) |
Should I switch regimes every year?
Salaried employees can switch between old and new regime each year by informing their employer. Self-employed individuals who chose new regime can switch back once. Calculate both options every year — your optimal choice may change as your deductions change.
Is NPS worth it just for the extra ₹50,000 deduction?
If you're in the 30% tax bracket, the ₹50,000 NPS deduction saves ₹15,600 in tax. The money is locked till 60 and partially taxable on withdrawal. For high earners, it's usually worth it. For lower brackets, the lock-in may not justify the smaller tax saving.
What if I miss the March 31 deadline for 80C investments?
You lose the deduction for that financial year — there's no extension. EPF happens automatically, but ELSS, PPF, and other voluntary investments need to be made before March 31. Don't wait until the last week.
Related Calculators
- Income Tax Calculator — compute tax under both regimes
- HRA Calculator — HRA exemption amount
- Compound Interest Calculator — project investment growth
- SIP Calculator — plan monthly ELSS investments