Tax calculation comparison between old and new tax regimes in Excel.

Let’s solve this step by step.

We are comparing two tax regimes for Alex: Old Tax Regime and New Tax Regime.

From the image, we can see:

Alex’s Income Details (Right Side):

- Gross Total Income = ₹2,800,000
- Total Exemptions = ₹550,000
- Total Deductions = ₹230,000
→ So, Taxable Income = ₹2,020,000 (already calculated)

Now, under Old Tax Regime, the “Tax on Income” is shown as ₹418,500

Under New Tax Regime, the “Tax on Income” is shown as ₹306,000

The question is asking for the difference between both tax regimes — meaning, how much more or less tax Alex pays under one regime vs the other.

So, we subtract:

> Difference = Tax under Old Regime – Tax under New Regime
> = ₹418,500 – ₹306,000
> = ₹112,500

That means Alex saves ₹112,500 by choosing the New Tax Regime instead of the Old one.

✔ Let’s double-check the subtraction:

418,500
–306,000
= 112,500 → Correct.

Final Answer:
₹112,500