⚖️ Old vs New Tax Regime
Compare income tax under the old and new tax regimes for FY 2024-25. Enter your income and deductions to find which regime saves more tax.
💰 Income Details
Before any deductions
Interest, rent, freelance, etc.
📋 Old Regime Deductions
These deductions are not available in the new regime (except standard deduction)
Use HRA calculator to compute
✅ New Tax Regime is better for you
You save ₹29,900 per year by choosing the New Regime = ₹2,492/month
Tax Comparison — FY 2024-25
| Details | Old Regime | New Regime |
|---|---|---|
| Gross Income | ₹12,00,000 | ₹12,00,000 |
| Standard Deduction | ₹50,000 | ₹75,000 |
| Other Deductions | ₹2,25,000 | — |
| Total Deductions | ₹2,75,000 | ₹75,000 |
| Taxable Income | ₹9,25,000 | ₹11,25,000 |
| Income Tax | ₹97,500 | ₹68,750 |
| Tax + 4% Cess | ₹1,01,400 | ₹71,500 |
| Effective Rate | 8.45% | 5.96% |
| In-Hand Income | ₹10,98,600 | ₹11,28,500 |
📊 Tax Slab Comparison
Old Regime Slabs
| Income Slab | Rate |
|---|---|
| Up to ₹2.5 lakh | 0% |
| ₹2.5L – ₹5L | 5% |
| ₹5L – ₹10L | 20% |
| Above ₹10L | 30% |
87A rebate: 0 tax if taxable ≤ ₹5L
New Regime Slabs (Budget 2024)
| Income Slab | Rate |
|---|---|
| Up to ₹3 lakh | 0% |
| ₹3L – ₹7L | 5% |
| ₹7L – ₹10L | 10% |
| ₹10L – ₹12L | 15% |
| ₹12L – ₹15L | 20% |
| Above ₹15L | 30% |
87A rebate: 0 tax if taxable ≤ ₹7L
Old vs New Regime — Key Differences
| Feature | Old Regime | New Regime |
|---|---|---|
| Standard Deduction | ₹50,000 | ₹75,000 (Budget 2024) |
| Section 80C (LIC, PF, ELSS) | ✅ Up to ₹1.5L | ❌ Not allowed |
| Section 80D (Health Insurance) | ✅ Available | ❌ Not allowed |
| HRA Exemption | ✅ Available | ❌ Not allowed |
| NPS 80CCD(1B) | ✅ ₹50,000 extra | ❌ Not allowed |
| Home Loan Interest 24(b) | ✅ Up to ₹2L | ❌ Not allowed |
| Leave Travel Allowance | ✅ Exempt | ❌ Not allowed |
| Rebate u/s 87A | Up to ₹5L income | Up to ₹7L income |
| Default Regime | Opt-in needed | Default from FY24 |
| Best for | High deductions (>₹3L) | Low/no deductions |
Frequently Asked Questions
Which tax regime is better for me?
The new regime is generally better if your total deductions (80C + 80D + HRA + NPS + Home Loan interest) are less than ₹3–3.5 lakh. If your deductions exceed ₹3.5 lakh, the old regime usually results in lower tax. Use this calculator to find out for your specific situation.
Can I switch between old and new tax regime every year?
Salaried employees (without business income) can switch between regimes every financial year at the time of filing ITR. However, if you have business income, you can switch from new to old regime only once in a lifetime.
What is the standard deduction in new regime for FY 2024-25?
The standard deduction in the new tax regime is ₹75,000 for FY 2024-25 (increased from ₹50,000 in Budget 2024). In the old regime, the standard deduction remains ₹50,000.
Is NPS contribution deductible in new regime?
Section 80CCD(1B) — the additional NPS deduction of ₹50,000 — is NOT available in the new regime. However, employer's contribution to NPS (Section 80CCD(2)) up to 10% of basic salary IS deductible in the new regime.
What is the rebate under Section 87A?
Section 87A provides a tax rebate. In the old regime, if your taxable income is up to ₹5 lakh, you pay zero tax. In the new regime (FY 2024-25), if your taxable income is up to ₹7 lakh, you pay zero tax.
Is new regime default from FY 2023-24?
Yes. From FY 2023-24, the new tax regime is the default. If you want to use the old regime, you must explicitly opt for it when filing ITR or by submitting Form 10IE before filing if you have business income.