New vs Old Tax Regime FY 2024-25 — Which Saves You More?
Real numbers at three income levels. Know your break-even deduction amount before choosing.
The Core Trade-Off
The New Regime offers lower tax rates but you give up most deductions (HRA, 80C, 80D, home loan interest, LTA). The Old Regime has higher rates but lets you reduce taxable income through deductions — potentially saving more tax if your deductions are high.
Rule of thumb: if your total deductions exceed ₹3.75–4 lakh (across standard deduction, 80C, HRA, 80D, NPS), the old regime usually wins above ₹10L income.
FY 2024-25 Tax Slabs — Side by Side
New Regime
Up to ₹3 lakh0%
₹3L – ₹7L5%
₹7L – ₹10L10%
₹10L – ₹12L15%
₹12L – ₹15L20%
Above ₹15L30%
Standard deduction₹75,000
87A rebate (if income ≤ ₹7L)Up to ₹25,000
Old Regime
Up to ₹2.5 lakh0%
₹2.5L – ₹5L5%
₹5L – ₹10L20%
Above ₹10L30%
Standard deduction₹50,000
87A rebate (if income ≤ ₹5L)Up to ₹12,500
Major deductions available80C, HRA, 80D, NPS…
Note: 4% Health & Education Cess applies on both regimes. Surcharge applicable above ₹50L.
Which Regime Wins at Different Income Levels?
Assuming typical deductions: ₹1.5L in 80C, ₹25K in 80D, and ₹1.2L HRA exemption = ₹2.95L total deductions (plus ₹50K standard deduction = ₹3.45L).
Gross Income
New Regime Tax
Old Regime Tax
Winner
You Save
₹6,00,000
₹0
₹0
Tie
₹0
₹8,00,000
₹23,400
₹0
Old Regime
₹23,400
₹10,00,000
₹44,200
₹45,240
New Regime
₹1,040
₹12,00,000
₹71,500
₹86,840
New Regime
₹15,340
₹15,00,000
₹1,30,000
₹1,65,360
New Regime
₹35,360
₹20,00,000
₹2,78,200
₹3,21,360
New Regime
₹43,160
*Includes 4% cess. Old regime assumes ₹3.45L total deductions. Actual tax varies with your specific deductions.
The Break-Even Rule:
With ₹3.45L deductions (as shown in the table), the new regime wins above ₹8L. Old regime only wins at ₹8L because the 87A rebate makes taxable income of ₹4.55L fully zero-tax. Old regime starts winning above ₹10L only when total deductions reach ~₹3.5L or more (80C ₹1.5L + standard ₹50K + HRA ₹1.2L+ + 80D ₹25K).
Top Deductions Available ONLY in Old Regime
Section 80C (₹1.5L) — EPF, ELSS, LIC, PPF, NSC, home loan principal repayment
HRA Exemption — Often ₹1–2L+ for city residents paying significant rent
Section 80D (₹25K–₹50K) — Health insurance premium (+ ₹25K for parents)
Section 80CCD(1B) (₹50K) — Extra NPS contribution beyond 80C limit
Home Loan Interest (Section 24b) — Up to ₹2L on self-occupied property
LTA (Leave Travel Allowance) — 2 journeys in 4-year block
If you're using all these, your deductions could easily reach ₹5–6L, making the old regime significantly better above ₹10L income.
Calculate Your Exact Tax — Both Regimes
Enter your income and deductions to instantly compare New Regime vs Old Regime tax and see which saves you more — with a full slab-by-slab breakdown.
Yes, effectively. With a ₹75,000 standard deduction (new regime FY 2024-25), your taxable income on ₹7.75L gross = ₹7L. On ₹7L taxable, the Section 87A rebate covers the full tax liability (up to ₹25,000 rebate, tax at ₹7L = ₹20,000 exactly). So net tax = ₹0 + 4% cess = ₹0. For gross income up to ₹7.75L with only salary income, new regime is zero tax with no investment needed.
Salaried employees can choose a different regime when filing their ITR, regardless of what they declared to their employer during the year. If you declared new regime to employer (so less TDS was deducted) but want to file old regime ITR, you can — you'll just pay the additional tax while filing (or claim a refund if old regime gives you a refund). The annual filing is the final determination of your regime choice for that year.
No — the investments themselves still make financial sense (PPF is tax-free at 7.1%, ELSS has excellent long-term returns). The new regime just doesn't give you a tax deduction for making these investments. If you choose new regime, you invest for returns/goals, not tax savings. PPF's EEE status (tax-free interest + maturity) still benefits new regime filers — only the initial deduction is lost. Continue PPF/ELSS if the investment case is strong, even without the deduction.
