India now has two tax regimes. The New Regime offers lower slab rates but no major deductions. The Old Regime has higher slab rates but allows HRA, 80C, 80D, and other deductions that can significantly reduce your tax.
Rule of thumb: if your total deductions exceed ₹3.75 lakh, the old regime likely saves you more. Below that, go new.
FY 2024-25 Tax Slabs
Income Slab
New Regime Rate
Old Regime Rate
Up to ₹2,50,000
0%
0%
₹2,50,001 – ₹3,00,000
0%
5%
₹3,00,001 – ₹5,00,000
5%
5%
₹5,00,001 – ₹6,00,000
5%
20%
₹6,00,001 – ₹7,00,000
5%
20%
₹7,00,001 – ₹9,00,000
10%
20%
₹9,00,001 – ₹10,00,000
15%
20%
₹10,00,001 – ₹12,00,000
15%
30%
₹12,00,001 – ₹15,00,000
20%
30%
Above ₹15,00,000
30%
30%
New Regime: Standard deduction ₹75,000 | Rebate u/s 87A up to ₹25,000 (if income ≤ ₹7L)
Old Regime: Standard deduction ₹50,000 | Rebate u/s 87A up to ₹12,500 (if income ≤ ₹5L)
Compare Your Tax — New vs Old Regime
Salary + any other income before deductions
Affects basic exemption in old regime
Old Regime Deductions (optional)
PF + ELSS + LIC + PPF, max ₹1,50,000
Self: ₹25K, Parents: ₹25K extra
Use our HRA Calculator to find this
NPS 80CCD(1B) ₹50K, home loan interest, LTA, etc.
New Regime Tax
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Old Regime Tax
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New Regime — Tax Breakdown
Break-Even Deduction Amount
For FY 2024-25, the old regime beats the new regime if your total deductions exceed approximately ₹3.75–4 lakh (including standard deduction, 80C, HRA, 80D, etc.). Calculate yours — if you're investing heavily in 80C and paying rent, the old regime often wins above ₹8–10 lakh income.
Surcharge & Cess Not Included
This calculator computes base income tax only. A 4% Health & Education Cess is applied on the tax amount. Surcharge applies if income exceeds ₹50 lakh (10–37% depending on regime and income band). Consult a CA for exact liability if income exceeds ₹50 lakh.
Frequently Asked Questions
Use our calculator above to check your exact situation. Generally: choose Old Regime if you're investing ₹1.5L in 80C, paying rent (HRA exemption), and have health insurance. Choose New Regime if you have few deductions or are just starting your career. For income above ₹15 lakh with maximum deductions, old regime often saves ₹30,000–₹60,000 annually.
Salaried employees can switch regimes every year at the time of filing ITR. You can choose a different regime from what you declared to your employer — just pay/claim the difference when filing. However, if you have business income, you can switch to old regime only once, and switching back requires permanently forgoing the old regime (with limited exceptions).
Section 87A provides a full rebate on tax liability if your net taxable income is below a threshold. For FY 2024-25: New Regime — rebate up to ₹25,000 if taxable income ≤ ₹7 lakh (effectively zero tax up to ₹7.75 lakh with standard deduction). Old Regime — rebate up to ₹12,500 if taxable income ≤ ₹5 lakh. This is a rebate, not a deduction — it directly reduces your final tax to zero.
Yes. As of FY 2024-25 (Budget 2024): Standard deduction under New Regime is ₹75,000 (increased from ₹50,000). Standard deduction under Old Regime remains ₹50,000. This is automatically deducted from your salary income — no investment proof required. Pensioners also get this deduction.
