Interactive Tool • Dual-Regime & Surcharge Optimization

Old vs New Tax Regime & Surcharge Marginal Relief Simulator

Model your exact post-tax income under the New Tax Regime (Section 115BAC / Income-tax Act 2025) versus the Old Tax Regime. Solves the mathematical marginal relief equation for surcharge thresholds and models Section 80CCD(2) employer NPS optimization.

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Test ₹52 Lakhs or ₹1.05 Cr to see Marginal Relief in action
Used for Section 80CCD(2) Employer NPS modeling

Itemized Deductions (Available Under Old Regime)

Max ₹1,50,000
Self + Parents (Up to ₹75k/₹1L)
Max ₹2,00,000 on self-occupied
Rent paid HRA or Chapter VI-A
Deductible under BOTH Old & New Regimes!

Mathematical & Statutory Architecture

1. Section 89 Surcharge Marginal Relief

When total income marginally crosses ₹50 Lakhs (10% surcharge) or ₹1 Crore (15% surcharge), the additional tax liability can exceed the incremental income earned above the threshold. Under the statutory marginal relief doctrine, total tax and surcharge is strictly capped so that the incremental tax does not exceed the incremental income over the threshold.

2. Section 80CCD(2) Employer NPS

Unlike Section 80C which is disallowed under the New Tax Regime, contributions made by an employer to the National Pension System (NPS) up to 10% of (Basic + DA) are fully deductible under BOTH regimes under Section 80CCD(2), subject to the aggregate ₹7.5 Lakh cap under Section 17(2)(vii).

ICAI Code of Ethics Pull-Model Statutory Notice This interactive simulator provides computational modeling based on Finance (No. 2) Act 2024 and Income-tax Act, 2025. It operates 100% locally in your browser with zero data storage on our servers under the DPDP Act 2023.