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Tax

Comprehensive Income Tax Calculator — Indore FY 2025-26

At Rs 5.0L average salary in Indore (Madhya Pradesh), the Old regime tax with full deductions (HRA at 40%, 80C, 80D, home loan interest) is Rs 0.00L versus the New regime's Rs 0.00L. The New regime saves Rs 0K for a typical Indore professional — but this depends critically on your actual rent, deductions, and income from other sources.

Verified Formula|Source: Income Tax Department, Government of India|Last verified: April 2026Methodology

Income from All 5 Heads

Rs.
Rs.

Enter negative for loss from house property

Rs.
Rs.
Rs.

FD interest, dividends, gifts, etc.

Old Regime Deductions

Rs.

Max Rs 1,50,000

Rs.
Rs.
Rs.

Related Calculators

Old vs New Regime80C Optimizer

Optimal Tax Regime

New Regime

You save ₹1,11,800 by choosing the new regime

Tax — New Regime

₹0

Effective rate: 0.00%

Tax — Old Regime

₹0

Effective rate: 9.32%

Regime Comparison

Income Breakdown

Salary₹12,00,000
House Property₹0
Business / Profession₹0
Capital Gains₹0
Other Sources₹0

Gross Total Income₹12,00,000

Feature Comparison

FeatureNew RegimeOld Regime
Standard DeductionRs 75,000Rs 50,000
Section 80C
Section 80D
HRA Exemption
Home Loan Interest
NPS 80CCD(2)
Lower Tax Slabs
Section 87A RebateUp to Rs 25KUp to Rs 12.5K

Which regime should you choose?

Based on your income of ₹12,00,000 and deductions totalling ₹1,75,000, the New Regime saves you ₹1,11,800. Salaried individuals can switch between regimes every year at the time of filing returns.

All 5 Heads of Income — Tax Computation for Indore Residents FY 2025-26

Indian income tax law classifies all income into five heads. For Indore's professionals — primarily employed in IT/ITES, Trading, Pharma — salary income dominates, but many also earn from house property (rental income from investment flats), capital gains (equity or real estate), and other sources (FD interest at 7%). Understanding all five heads is essential for accurate tax planning at Indore's cost levels.

Head 1: Income from Salary — Indore Structure

The typical Rs 5.0L CTC package at Indore employers like TCS and Infosys breaks down as:

  • Basic salary (40% of CTC): Rs 2,00,000/year — forms the base for HRA, gratuity, and PF calculations.
  • HRA (50% of basic): Rs 1,00,000/year —Indore is classified as a non-metro city for HRA purposes, meaning the HRA exemption cap is 40% of basic salary. With a rent of Rs 10,000/month in Indore, the exempt HRA is the minimum of: actual HRA (Rs 1,00,000), 40% of basic (Rs 80,000), and rent paid minus 10% of basic (Rs 1,00,000). Exempt HRA: Rs 80,000.
  • Special allowance (35% of CTC): Rs 1,75,000/year — fully taxable, no exemption available under the New regime or Old regime.
  • Standard deduction: Old regime Rs 50,000, New regime Rs 75,000 (raised from Rs 50,000 in Budget 2024 — applicable from FY 2024-25 onwards).

Indore's Professional Tax of Rs 0/year (Rs 0/month) is also deductible from gross salary before computing taxable income — a small but legitimate deduction under both regimes. Indore residents pay zero professional tax — an advantage over cities like Mumbai (Rs 2,500/yr) or Bengaluru (Rs 2,400/yr).

Old Regime vs New Regime: Indore Comparison at Rs 5.0L

Here is the complete tax computation comparison for a Indore professional earning Rs 5.0L CTC, paying Rs 10,000/month rent, and claiming full deductions:

Old Regime (with all deductions):

  • Gross salary (after HRA exemption Rs 80,000): Rs 4,20,000
  • Less standard deduction (Rs 50,000): Rs 3,70,000
  • Less Section 80C (EPF + ELSS + PPF): − Rs 1,50,000
  • Less Section 80D (self + parents health insurance): − Rs 50,000
  • Less Section 24(b) home loan interest: − Rs 2,00,000
  • Taxable income: Rs 0
  • Income tax at old slab rates: Rs 0
  • Add 4% cess: Total tax: Rs 0
  • Effective tax rate: 0.0%
  • Monthly take-home (after tax + PT): Rs 41,667

New Regime (FY 2025-26 slabs):

  • Gross salary: Rs 5,00,000
  • Less standard deduction (Rs 75,000): Rs 4,25,000
  • No other deductions — no HRA, no 80C, no 80D, no 24(b)
  • Taxable income: Rs 4,25,000
  • Income tax at new slab rates: Rs 1,250 → Rs 0 after 87A rebate
  • Add 4% cess: Total tax: Rs 0
  • Effective tax rate: 0.0%
  • Monthly take-home (after tax + PT): Rs 41,667

Verdict for Indore at Rs 5.0L: The New regime saves Rs 0 annually. However, this changes if you have a home loan — Section 24(b) deduction of Rs 2L significantly benefits the Old regime. Without a home loan, at Rs 5.0L, the Old regime tax without 24(b) is Rs 0, making the decision in favour of New regime.

Head 2: Income from House Property in Indore

Indore's property market (Super Corridor IT Park zone rose 20–25% in FY2025 driven by new Infosys and TCS expansions. Vijay Nagar remains the most-sought residential area at Rs 5,000–7,000/sqft. AB Road commercial corridors appreciate 12% annually. New Ring Road zones (Rau-Bicholi) emerge as affordable at Rs 3,000–4,000/sqft.) creates meaningful house property income for investment property owners. A let-out flat earning Rs 8,000/month (Rs 1.0L/year) in Vijay Nagar computes as:

  • Gross Annual Value (GAV): Rs 96,000
  • Less municipal taxes paid: − Rs 4,800
  • Net Annual Value (NAV): Rs 91,200
  • Less 30% standard deduction on NAV (Section 24a): − Rs 27,360
  • Less home loan interest on the let-out property: − Rs 2,22,224
  • House property income: Rs 1,58,384 (LOSS)

The house property shows a loss of Rs 1,58,384 due to the large home loan interest deduction (unlimited for let-out properties, unlike the Rs 2L cap for self-occupied). Under the Old regime, up to Rs 1,58,384 of this loss can be set off against salary income in the same year, reducing your taxable income. Note: House property income/loss is NOT allowed in the New regime — you forgo this set-off if choosing New regime.

Head 3: Capital Gains from Indore Real Estate and Equity

Capital gains from selling a Indore property at Rs 3,800/sq.ft. are taxed separately — not at slab rate:

  • LTCG on property (held >24 months): Sale of a 900 sq.ft. flat (current value Rs 34,20,000) originally bought for Rs 23,94,000 generates LTCG of Rs 8,22,510. Tax at 12.5% (Finance Act 2024, no indexation): Rs 1,06,926.
  • LTCG on equity (held >12 months): Up to Rs 1,25,000 in equity LTCG per year is exempt under Section 112A. Beyond that, 12.5% tax applies. The exemption limit was raised from Rs 1L to Rs 1.25L in Budget 2024.
  • STCG on equity (held <12 months): Taxed at 20% flat (raised from 15% in Budget 2024). Rs 50,000 STCG → Rs 10,400 tax.
  • Stamp duty and registration on purchase: Indore charges7.5% stamp duty + 1% registration (total 8.5%) — part of acquisition cost included in cost of acquisition for LTCG computation.

Capital gains are taxed as a separate layer — added to your total income for STCG computation, but taxed at special rates for LTCG. They are reported in Schedule CG of your ITR. Capital gains do NOT flow through Old vs New regime — both regimes apply the same capital gains rates.

Head 4: Business or Profession Income for Indore Freelancers

Indore's IT/ITES sector supports many independent consultants earning professional income. Freelancers can use:

  • Presumptive taxation (Section 44ADA): If professional income is ≤ Rs 75L/year (raised in Budget 2023), you can declare 50% as profit — no books of accounts required. Tax is paid on 50% of gross receipts. For a Indoreconsultant earning Rs 40L, taxable income = Rs 20L under 44ADA.
  • Actual income method: Deduct actual business expenses (internet, software, home office, travel, professional fees) from gross receipts. Requires detailed books but can result in lower taxable income if expenses are high.
  • TDS deducted by clients: Clients deduct 10% TDS (Section 194J) on professional fees. Freelancers with income in Indore's IT/ITESsector must pay advance tax for the tax beyond 10% TDS.

Head 5: Income from Other Sources — FD Interest in Indore

Fixed deposit interest at 7% is one of the most common "other sources" incomes for Indore professionals. A Rs 15L FD at 7%:

  • Annual interest income: Rs 1,05,000
  • TDS deducted by bank (10% if interest > Rs 40,000/year): Rs 10,500
  • Additional tax at your slab rate: if marginal rate is 20%, tax on FD interest = Rs 21,000 → additional Rs 10,500 beyond TDS
  • Section 80TTA: Savings account interest up to Rs 10,000/year is exempt (under Old regime only). The FD interest does NOT qualify for 80TTA exemption. Under New regime, even the Rs 10,000 savings interest exemption is unavailable.

FD interest must be declared every year as it accrues — not just when it matures. For a 3-year FD opened in Indore, you must report 1/3 of total interest each year in your ITR (accrual basis). Bank TDS is deducted annually and shows in Form 26AS.

Unique Financial Context: Indore

Madhya Pradesh has zero professional tax — Indore professionals pay Rs 0/year, saving Rs 2,500 vs Maharashtra. Indore has won India's cleanest city title 7 consecutive years (2017–2024), driving consistent real estate demand from migrants. The Super Corridor IT zone saw 40%+ property appreciation in 2021–2024, making Indore one of India's top 3 real-estate ROI destinations among Tier-2 cities.

Indore is India's cleanest city and fastest-growing Tier-2 tech hub — the Super Corridor has driven 40%+ real estate appreciation in 3 years, attracting first-time homebuyers.

Multi-Head Total Tax: A Indore Scenario

A Indore professional with salary (Rs 5.0L) + let-out property income + FD interest (Rs 1,05,000) + equity STCG (Rs 50,000):

  • New regime salary tax: Rs 0
  • House property income: Rs 0 (New regime — no loss set-off)
  • FD interest (added to salary for slab): Rs 1,05,000 additional income
  • LTCG on property (if sold): Rs 1,06,926
  • Equity STCG tax: Rs 10,400
  • Combined tax liability: Rs 1.24L — substantially more than the salary-only estimate. Multi-head income significantly increases the complexity and the total tax outflow in Indore.

Disclaimer: Tax computations above are illustrative for FY 2025-26 (AY 2026-27) for a resident individual taxpayer using Finance Act 2025 provisions. Actual liability depends on your complete income profile, specific deduction claims, TDS deducted, and applicable surcharge (if income exceeds Rs 50L). Capital gains rates, rebate thresholds, and slab rates are as per Finance Act 2024 and 2025. Consult a Chartered Accountant in Indore for precise tax planning across all five heads.

FAQs — Income Tax in Indore FY 2025-26

Old regime or New regime for a Indore professional earning Rs 5.0L with rent of Rs 10,000/month?

With a rent of Rs 10,000/month in Indore(non-metro — 40% HRA cap), the HRA exemption is Rs 80,000/year. Adding 80C (Rs 1.5L), 80D (Rs 50K for self and parents), and home loan interest (Rs 2L if applicable), Old regime taxable income falls to Rs 0 with tax of Rs 0. New regime tax is Rs 0. The New regime is better by Rs 0/year for this profile. If you do NOT have a home loan, recalculate — without the Rs 2L 24(b) deduction, the Old regime tax rises to Rs 0, which is still lower than the New regime.

Is Indore a metro or non-metro for HRA exemption purposes?

Indore is classified as a NON-METRO city for HRA exemption under Section 10(13A). The metro classification under the Income Tax Act covers only four cities: Delhi, Mumbai, Chennai, and Kolkata. Indore is NOT in this list — the HRA exemption cap is 40% of basic salary (NOT 50%). At a basic of Rs 2,00,000/year, the 40% cap is Rs 80,000. This is a commonly misunderstood point — many Bengaluru, Hyderabad, Gurgaon, and Pune residents incorrectly claim 50% HRA exemption. The correct figure for Indore residents is 40% of basic.

How does Indore's Professional Tax of Rs 0/year affect my income tax?

Indore (Madhya Pradesh) charges zero Professional Tax. This is a meaningful advantage over professionals in Maharashtra (Rs 2,500/yr), Karnataka (Rs 2,400/yr), or West Bengal (Rs 2,400/yr). The zero PT means your full gross salary (after HRA exemption and standard deduction) flows into taxable income without any PT deduction — but you also keep the full Rs 2,400–2,500/year that professionals in those states pay to the state government.

I sold a Indore flat and made a capital gain. Which ITR form do I use?

Capital gains from property require ITR-2 (salaried individuals with capital gains) or ITR-3 (if you also have business income). You cannot file ITR-1 (Sahaj) if you have capital gains from immovable property. For a Indoreproperty sold at Rs 3,800/sq.ft. rate, you must report: sale consideration, indexed cost of acquisition (or actual cost, since indexation has been removed for LTCG after July 2024 per Finance Act 2024), stamp duty paid on purchase, and brokerage/registration charges. The buyer deducts 1% TDS (Section 194-IA) if property value exceeds Rs 50L — obtain Form 16B from the buyer and reflect TDS credit in your ITR. LTCG on Indore real estate is taxed at 12.5% without indexation (Finance Act 2024). Reinvest in another residential property within 2 years (or construct within 3 years) under Section 54 to claim exemption on the LTCG.

Indore's comprehensive income tax landscape reflects Madhya Pradesh's Rs 2,496 professional tax, the non-metro 40% HRA classification, and a dual economy of IT professionals at Infosys TechnoHub, EPAM, and Persistent Systems' Vijay Nagar campus alongside Indore's historically dominant trading community at Sarafa bullion market, Rajwada textile corridor, and APMC commodity trading markets. The city's five-head income tax complexity is driven by: (1) salaried IT professionals with standard five-head salary analysis (HRA limited to Rs 1-1.5L by moderate Vijay Nagar rents Rs 10-18K); (2) Sarafa traders with business income from bullion and gem trading (Head 4), ancestral property rental income (Head 2), and capital gains from commodity MCX positions (Head 3 — commodity futures are now taxed under capital gains for non-business purposes); (3) Indore's emerging startup ecosystem (ATAL Incubation Centre at IIM Indore) where founders receive salary from their startup + potential capital gains from equity; and (4) agricultural income from surrounding Malwa plateau landholdings (MP's fertile belt). Madhya Pradesh's Section 16(iii) deductible PT of Rs 2,496 saves only Rs 498-749 at 20-30% slab — one of the most anti-climactic deductions in the analysis. The new regime benefits Indore IT professionals at Rs 12-18L CTC without home loans. Old regime wins at Rs 20L+ with Vijay Nagar Rs 18K+ rent + NPS + parents' 80D + Section 24b.

Key Insight — Indore

Indore's defining multi-head income tax insight is the Sarafa trader's commodity MCX derivatives taxation — where Sarafa gold traders who hedge their bullion inventory using MCX gold futures and options face a complex income tax classification that determines their effective tax rate on derivatives profits. Post-FY2018-19 SEBI reform: commodity derivatives traded on SEBI-recognized exchanges (MCX) are classified as 'non-speculative business income' (unlike the earlier 'speculative' classification that disallowed set-off against other income). This means Sarafa traders' MCX gold futures profits/losses are now: (a) taxable as business income (Head 4) if the trader holds commodity derivatives as part of business hedging — included in business profit computation; (b) taxable as capital gains if a non-trader holds MCX contracts as an investor (rare — since MCX derivatives are cash-settled, they typically qualify as non-speculative business income regardless). The practical implication: a Sarafa bullion dealer with Rs 40L business profit (spot gold trading) + Rs 5L MCX derivatives profit has Rs 45L total business income taxable at slab rate. The MCX profits cannot be classified as 15% LTCG or 20% STCG — they are ordinary income at 30% slab. Loss from MCX commodity derivatives: can be set off against other business income (non-speculative business loss set-off rules). Carried forward for 8 years and set off against non-speculative business income only. For Indore Sarafa traders: the regime choice (old vs new) determines whether Rs 4-5L investment deductions produce meaningful savings at Rs 40L+ income — and as analyzed in the old regime context, new regime wins at this income level without large Section 24b deductions.

Indore's Financial Context and Income Tax Calculator

MP PT: Rs 2,496/year. Indore NON-METRO HRA: 40% of basic. FD rate: 6.8-7.2% (SBI/Bank of India/HDFC). Avg 2BHK rent: Vijay Nagar Rs 10-18K, Palasia Rs 12-20K, LIG Colony Rs 8-14K, Scheme 78 Rs 10-16K, AB Road Rs 14-22K. Property price: Vijay Nagar Rs 5,000-9,000/sqft, Palasia Rs 7,000-12,000, South Tukoganj Rs 6,000-10,000. Sarafa market: India's largest bullion market, operating after 8pm. Gold futures on MCX: taxable under capital gains (if investment, not trading business). Commodity derivatives (futures/options on MCX): taxed as speculative income (Section 43(5)) if not covered under 'non-speculative' exclusions (SEBI-regulated commodity derivatives are non-speculative from FY2018-19 onwards). Agricultural income: Malwa plateau land in Dewas, Dhar, Ujjain districts → exempt under Section 10(1), rate integration applies. IIM Indore: premier management institution, faculty salaries comparable to Central Government Level 13-14. Infosys TechnoHub Rs 22L CTC (basic Rs 9.24L), rent Rs 18K Vijay Nagar: HRA = min(40%×9.24L=3.696L, Rs 2.16L-Rs 92,400=Rs 1.236L, Rs 3.696L) = Rs 1.236L. PT Rs 2,496. Old regime: SD Rs 50K + PT Rs 2,496 + HRA Rs 1.236L + 80C Rs 1.5L + 80D Rs 75K + NPS Rs 50K = Rs 4.759L. Old regime taxable: Rs 17.241L → tax Rs 12,500+100,000+217,230=Rs 329,730+cess=Rs 342,919. New regime: Rs 21.25L → Rs 231,250+cess=Rs 240,500. New regime wins by Rs 102,419 without home loan.

IIM Indore Faculty — Central Government Equivalent Multi-Head Profile

IIM Indore (Indian Institute of Management Indore, Rau campus) employs faculty at IIM pay scales equivalent to or exceeding Central Government Level 13-14. Faculty receive salary, research allowances, consultancy fees (Head 4 — consulting income from corporate clients is permitted under IIM's consultancy policy), and potentially international conference reimbursements. IIM Associate Professor (Rs 22L annual CTC approximately, basic structure comparable to Central Government Level 13): HRA if privately renting in Scheme 140 or adjacent areas (many IIM faculty live off-campus). Employer NPS: IIM faculty typically covered under New Pension Scheme at 14% basic (if post-2004 appointment). Employee NPS: 10% basic → fills most of 80C. Consultancy income: IIM faculty are permitted to earn consultancy income up to 52 days per year at market rates (per IIM board policy). If consultancy gross > Rs 50L: ITR-3 mandatory. If ≤ Rs 50L: 44ADA at 50% presumptive. IIM faculty at Rs 22L salary + Rs 8L consultancy (44ADA): total income Rs 22L + Rs 4L presumptive = Rs 26L. Campus accommodation (IIM typically provides campus housing): zero HRA. Old regime: SD Rs 50K + PT Rs 2,496 + 80C Rs 1.5L (NPS fills most) + 80D Rs 75K + NPS 1B Rs 50K = Rs 3.325L. Old regime taxable: Rs 22.675L → tax Rs 12,500+100,000+369,750=Rs 482,250+cess=Rs 503,540 (for salary portion). Add consultancy Rs 4L at 30% = Rs 1,20,000+cess = Rs 1,24,800. Total old regime: Rs 628,340. New regime: Rs 26L - Rs 75K = Rs 25.25L → 4-8L Rs 20K, 8-12L Rs 40K, 12-16L Rs 60K, 16-20L Rs 80K, 20-24L Rs 100K, 24-25.25L at 30%=Rs 37,500. Total Rs 337,500+cess=Rs 351,000. New regime wins by Rs 277,340! Campus accommodation + consultancy creates a massive new regime advantage at IIM profile.

Sarafa and Textile Trading — Business Income and Commodity Taxation

Indore's Sarafa (bullion and jewelry) market and Rajwada textile wholesale corridor represent India's second-largest inland trading volumes. The tax architecture for Indore traders involves multiple heads. Sarafa bullion dealer at Rs 50L net profit (annual, after COGS, employee salaries, shop rent): Head 4 entirely. No HRA (owns Vijay Nagar flat). Head 2: Flat is self-occupied → Section 24b Rs 2L (home loan Rs 60L). Head 5: FD interest Rs 1.5L on surplus funds. Total income: Rs 50L + Rs 0 (house property self-occupied net = Rs 0 after Section 24b set-off in house property head) + Rs 1.5L = Rs 51.5L. Old regime: 80C Rs 1.5L + 80D Rs 75K + NPS Rs 50K + Section 24b Rs 2L = Rs 4.75L. Old regime taxable: Rs 46.75L → tax Rs 12,500+100,000+1,102,500 (10-46.75L at 30%) = Rs 1,215,000+cess=Rs 1,263,600. New regime: Rs 51.5L → 4-8L Rs 20K, 8-12L Rs 40K, 12-16L Rs 60K, 16-20L Rs 80K, 20-24L Rs 100K, 24-51.5L at 30%=Rs 825,000. Total Rs 1,125,000+cess=Rs 1,170,000. New regime wins by Rs 93,600 even with Rs 4.75L deductions. At Rs 50L business income: new regime's slab advantage (25% on Rs 20-24L) overwhelms old regime deductions. The Rs 4.75L deduction in old regime saves Rs 1.425L (at 30% slab) but new regime's slab savings exceed this. Section 80G: charitable donations to Indore's well-known charitable trusts (Indore orphanages, Holi Kumar Dhamani Trust) provide 50% or 100% deduction under 80G → additional old regime benefit. A Sarafa trader donating Rs 5L to a 100% 80G-eligible trust: Rs 5L additional deduction → old regime total deductions Rs 9.75L → taxable Rs 41.75L → tax Rs 1,087,500+cess vs new regime Rs 1,170,000 → old regime wins by Rs 82,500. Section 80G philanthropy is the tip that flips old regime for high-income Indore traders.

More Questions — Income Tax Calculator in Indore

I work at EPAM Indore (Rs 25L CTC), rent Rs 18K Scheme 78, 80C maxed, 80D Rs 75K parents senior, NPS Rs 50K, home loan Rs 55L (Vijay Nagar flat). Complete FY2025-26 tax?

Comprehensive calculation: Head 1 (Salary): Basic Rs 10.5L (42%). HRA received Rs 5.25L. Rent Rs 18K Scheme 78. HRA exempt: min(40%×10.5L=4.2L, Rs 2.16L-Rs 1.05L=Rs 1.11L, Rs 4.2L) = Rs 1.11L. PT Rs 2,496. Section 24b: Rs 55L at 8.75% year 2 = Rs 4.8125L → cap Rs 2L. Head 5 (Other): FD interest Rs 60K. Old regime: SD Rs 50K + PT Rs 2,496 + HRA Rs 1.11L + Section 24b Rs 2L + 80C Rs 1.5L + 80D Rs 75K + NPS Rs 50K = Rs 6.412L. Old regime taxable salary: Rs 25L - Rs 6.412L = Rs 18.588L + FD Rs 60K = Rs 19.188L. Tax: Rs 12,500+100,000+272,640 (10-19.188L at 30%) + FD Rs 18,000 (30% slab) = Rs 403,140+FD tax+cess ≈ Rs 437,565. New regime: Rs 24.25L + Rs 60K FD = Rs 24.85L. Tax: 4-8L Rs 20K, 8-12L Rs 40K, 12-16L Rs 60K, 16-20L Rs 80K, 20-24.85L at 25%=Rs 121,250. Total Rs 321,250+cess=Rs 334,100. New regime wins by Rs 103,465! Even with all deductions plus home loan at Rs 25L: new regime wins. At Rs 25L CTC, the new regime's 25% slab (20-24L range) vs old regime's 30% creates a Rs 5% slab savings on Rs 4L = Rs 20K that accumulates. Total new regime advantage at Rs 25L even with Rs 6.4L deductions. Old regime needs Rs 8L+ deductions at Rs 25L to win. To achieve Rs 8L: need Section 24b from let-out property (unlimited interest) creating Rs 5L+ house property loss. Example: buy investment flat Rs 80L (loan Rs 64L) let out Rs 20K/month → house property loss Rs 3.5L → set off Rs 2L against salary → now old regime deductions Rs 8.4L → taxable Rs 16.6L → tax Rs 12,500+100,000+196,800 = Rs 309,300+cess = Rs 321,672 → old regime wins by Rs 12,428. Investment property creates old regime advantage at Rs 25L Indore.

I'm a self-employed textile trader in Rajwada (Rs 35L annual profit, 80C Rs 1.5L, 80D Rs 75K, NPS Rs 50K, Rs 80L home loan). Old or new regime?

Self-employed analysis: No standard deduction (self-employed, neither regime). Head 4 (Business): Rs 35L net profit. Head 2 (House property — self-occupied): Section 24b Rs 80L at 8.75% year 3 = Rs 7L → cap Rs 2L. Old regime: 80C Rs 1.5L + 80D Rs 75K + NPS Rs 50K + Section 24b Rs 2L = Rs 4.75L. Old regime taxable: Rs 35L - Rs 4.75L = Rs 30.25L. Tax: Rs 12,500+100,000+663,000 (10-30.25L at 30%) = Rs 775,500+cess=Rs 806,520. New regime: Rs 35L (no SD for self-employed). Tax: 4-8L Rs 20K, 8-12L Rs 40K, 12-16L Rs 60K, 16-20L Rs 80K, 20-24L Rs 100K, 24-35L at 30%=Rs 330,000. Total Rs 630,000+cess=Rs 655,200. New regime wins by Rs 151,320! At Rs 35L self-employed, new regime wins by Rs 1.5L even with all deductions plus home loan. PT Rs 2,496 as business expense (deductible in Head 4 for self-employed): reduces business profit by Rs 2,496 → both regimes get this benefit (not a regime differentiator). The Rs 4.75L old regime deduction saves Rs 1.425L at 30% slab. New regime saves Rs 1.56L through slab advantages (25% on 20-24L range). New regime saves more. Section 80G: Add Rs 4L charitable donation to 100% eligible trust → additional Rs 4L deduction → old regime deductions Rs 8.75L → taxable Rs 26.25L → tax Rs 12,500+100,000+498,000=Rs 610,500+cess vs new regime Rs 655,200 → old regime wins by Rs 44,700. Charitable giving flips old regime for Rajwada traders at Rs 35L.

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