Indian Financial Decision & Tax Intelligence Suite
Live tax regime breakeven, loan prepayment amortization, and multi-scenario data modeling.
Tax Regime Breakeven Analyzer
Comprehensive Indian Tax & Financial Planning Guide
Statutory tax slabs, reducing-balance loan mathematics, and systematic wealth growth models explained for Indian taxpayers.
1. Income Tax Slab Breakdown (New vs Old Tax Regime)
Under Section 115BAC (New Tax Regime), salaried employees receive a ₹75,000 standard deduction. With the enhanced Section 87A rebate for taxable income up to ₹12,00,000, gross salary up to ₹12.75 Lakhs incurs ₹0 net tax.
| Income Slab Range | New Regime Rate | Old Regime Rate (Below 60 yrs) |
|---|---|---|
| Up to ₹2,50,000 | Nil | Nil |
| ₹2,50,001 – ₹4,00,000 | Nil | 5% |
| ₹4,00,001 – ₹5,00,000 | 5% | 5% |
| ₹5,00,001 – ₹8,00,000 | 5% | 20% |
| ₹8,00,001 – ₹10,00,000 | 10% | 20% |
| ₹10,00,001 – ₹12,00,000 | 10% (87A Rebate) | 30% |
| ₹12,00,001 – ₹16,00,000 | 15% | 30% |
| ₹16,00,001 – ₹20,00,000 | 20% | 30% |
| ₹20,00,001 – ₹24,00,000 | 25% | 30% |
| Above ₹24,00,000 | 30% | 30% |
2. Home Loan Prepayment & Amortization Math
Home Loans follow a reducing-balance amortization schedule: EMI = [P × r × (1 + r)^n] / [(1 + r)^n – 1]. Regular extra monthly principal prepayments bypass future compound interest, reducing loan duration significantly.
3. Goods and Services Tax (GST) Extraction
Extracting taxable base from GST-inclusive retail price: Taxable Value = Total Price / (1 + Rate / 100). For intrastate transactions, GST splits equally into CGST and SGST.
Frequently Asked Questions
Is ArthaSetu India affiliated with the Income Tax Department?
No. ArthaSetu India is an independent financial intelligence platform. We provide transparent mathematical engines based on published statutory rules.
What is the Breakeven Deduction for Old vs New Tax Regime?
The breakeven deduction is the exact amount of tax exemptions (80C, 80D, HRA, home loan interest) you need so that tax liability in the Old Regime is lower than the New Regime.
How much interest can I save with Home Loan prepayments?
Even a modest extra prepayment of ₹2,000 to ₹5,000 per month or one additional EMI every year can save ₹5 to ₹15 Lakhs in interest and cut a 20-year loan tenure by 3 to 6 years.
Why does a CTC hike not translate to the same in-hand increase?
A higher CTC often pushes additional earnings into higher income tax brackets (up to 30% + cess) and increases statutory deductions like Employee Provident Fund (EPF), leading to a lower net in-hand increment.
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