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Tax

Old vs New Tax Regime Calculator

Compare your income tax under Old and New regime for FY 2024-25. See which saves you more. Includes 87A rebate, 4% cess, and all major deductions.

Old Regime Deductions
💡 Standard deduction of ₹50,000 (Old) and ₹75,000 (New) is auto-applied.
Old Regime
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Annual Tax
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New Regime
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💡 RECOMMENDATION

Enter your income to see recommendation

FY 2024-25 Tax Slabs
OLD REGIME
Up to ₹2.5L → Nil₹2.5L–₹5L → 5% ₹5L–₹10L → 20%Above ₹10L → 30% + 4% cess. 87A rebate if ≤₹5L
NEW REGIME
Up to ₹3L → Nil₹3L–₹7L → 5% ₹7L–₹10L → 10%₹10L–₹12L → 15% ₹12L–₹15L → 20%Above ₹15L → 30% + 4% cess. 87A rebate if ≤₹7L

Old Regime vs New Regime — Complete Guide

The Finance Act 2023 made the New Tax Regime the default from FY 2023-24. However, you can still choose the Old Regime by filing a declaration with your employer before the start of the financial year.

When Old Regime is Better

Old Regime saves more tax when you have significant deductions. If you are investing ₹1.5L in 80C, paying HRA, contributing to NPS, and have health insurance — the old regime deductions can be ₹2.5–4L+ which reduces your taxable income substantially. At income levels of ₹8–15L, the old regime with full deductions often wins.

When New Regime is Better

New Regime is better when your deductions are low. If you're a young professional who hasn't started tax-saving investments, don't pay rent in your own name, or have a salary above ₹15L — the new regime's lower tax rates often result in less tax. It's also simpler — no investment proof submission, no declaration, less paperwork.

Frequently Asked Questions

Can I switch tax regime every year?
Salaried individuals (without business income) can switch between Old and New regime every financial year. You declare your choice at the beginning of the year to your employer for TDS calculation purposes. Individuals with business income can switch only once from Old to New regime, and only once back.
What is the 87A tax rebate?
Section 87A provides a tax rebate — meaning zero tax — if your taxable income is within a limit. Under Old Regime: full rebate if taxable income ≤ ₹5L (no tax up to ₹5L gross). Under New Regime: full rebate if taxable income ≤ ₹7L (effectively no tax for income up to ~₹7.75L after standard deduction).
Is NPS a good investment for tax saving?
NPS (National Pension System) gives an additional ₹50,000 deduction under 80CCD(1B) — over and above the ₹1.5L 80C limit. This can save ₹15,000+ in tax for those in the 30% bracket. However, NPS has restrictions on withdrawal (minimum 40% must be used to buy annuity at retirement). Evaluate lock-in vs tax benefit.

Related Calculators

⚠️ Disclaimer: Tax calculations are based on Finance Act 2024 slabs for FY 2024-25. This does not account for surcharge (applicable for income above ₹50L), special rates for capital gains, or business income. Consult a CA for complete tax planning.
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