Old vs New Tax Regime: Which one to choose?
Deciding between the Old and New tax regimes for FY 2024-25 (AY 2025-26) can be tricky. The July 2024 Budget has made the New Regime even more attractive with revised slabs and a higher standard deduction of ₹75,000.
Use our calculator to see a side-by-side comparison of your tax liability and discover which regime saves you more money based on your specific salary and investments.
New Tax Regime Slabs (FY 2024-25)
| Income Slab | Tax Rate |
|---|---|
| Up to ₹3,00,000 | NIL |
| ₹3,00,001 - ₹7,00,000 | 5% |
| ₹7,00,001 - ₹10,00,000 | 10% |
| ₹10,00,001 - ₹12,00,000 | 15% |
| ₹12,00,001 - ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Note: Salaried individuals get a rebate under Section 87A, making income up to ₹7,75,000 (including ₹75k standard deduction) effectively tax-free in the New Regime.
Frequently Asked Questions
The New Tax Regime is a simplified tax system with lower tax rates but fewer deductions. Most exemptions like HRA, LTA, and Section 80C are not available, although Standard Deduction is allowed.
No. Deductions under Section 80C (PPF, LIC, ELSS, etc.) are only available in the Old Tax Regime. The New Regime focus is on lower absolute tax rates without the need for investment-based planning.
Salaried individuals can choose between the regimes every financial year when filing their returns. However, those with business income can only switch once in their lifetime.
Related Calculators
Disclaimer: This calculator is for educational purposes based on current tax laws. Tax rules are subject to change. Always consult a qualified tax professional or Chartered Accountant (CA) before making final decisions.