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Old vs new tax regime calculator

Enter your income and your actual 80C, 80D, and other deductions. See which regime genuinely saves you more this year, not a generic rule of thumb.

Total invoiced income for the financial year, before deductions
PPF, ELSS, life insurance premium. Capped at ₹1,50,000
Health insurance for self, family, parents. Capped at ₹1,00,000
Home loan interest, NPS, other old-regime-only deductions
Assumes Section 44ADA presumptive taxation (50% of receipts as taxable profit), which applies identically under both regimes.
How this is calculated
1
44ADA applies to both
50% presumptive profit is identical either way.
2
Old regime subtracts deductions
Your real 80C, 80D, and other amounts, capped at statutory limits.
3
Compare the two tax bills
Whichever is lower wins for this year.
An estimate for planning. Not tax filing advice.
This calculator covers
Section 44ADA presumptive tax
New regime slabs (FY 2025-26)
Old regime slabs and rebate
80C and 80D deduction caps
Side-by-side tax comparison

Frequently asked questions

Which tax regime is better for freelancers in India?

It depends entirely on how much you actually claim in deductions like Section 80C and 80D. The new regime has lower slab rates but almost no deductions. The old regime has higher slab rates but allows the full set of deductions. Most freelancers with modest investments and insurance premiums come out ahead on the new regime, but the gap narrows or reverses once real 80C and 80D amounts are large.

Does Section 44ADA presumptive taxation work the same way under both regimes?

Yes. The 50% presumptive profit calculation under Section 44ADA is identical under both regimes, it only affects how much of your gross receipts counts as taxable income. The regime choice affects what happens after that: which slab rates apply and whether deductions like 80C and 80D can reduce that taxable income further.

Can a freelancer switch between the old and new tax regime every year?

Yes, professionals filing ITR-3 or ITR-4 can choose their regime fresh each filing year based on that year's actual numbers. There is no multi-year lock-in on the regime choice itself, so comparing both every year based on your real deductions is the correct approach rather than defaulting to whichever you picked before.

What deductions does the new tax regime not allow?

The new regime does not allow Section 80C (PPF, ELSS, life insurance premium), Section 80D (health insurance premium), home loan interest deduction, or most other Chapter VI-A deductions. It does keep the standard deduction and the NPS employer contribution deduction. This is the core tradeoff against its lower slab rates.

How much do I need in 80C and 80D deductions for the old regime to win?

There is no single number since it depends on your total income level, but as a rough pattern, the old regime typically needs deductions well past ₹2,00,000 combined (close to the full 80C and 80D limits) before its higher slab rates are offset. Below that, the new regime usually wins for most solo freelancers under 44ADA.