Old vs New Tax Regime
Compare old vs new tax regime side-by-side. Find your breakeven deduction amount & see which regime saves more tax.
| New Regime | Old Regime | |
|---|---|---|
| Gross Income | ₹15,00,000 | ₹15,00,000 |
| Std Deduction | ₹75,000 | ₹50,000 |
| Deductions | — | ₹3,45,000 |
| Taxable | ₹14,25,000 | ₹11,05,000 |
| Tax + Cess | ₹97,500 | ₹1,49,760 |
| In-hand (monthly) | ₹1,16,875 | ₹1,12,520 |
Frequently Asked Questions
Which regime is default?
From FY 2024-25, the new tax regime is the default. You must explicitly opt for the old regime. Salaried employees can switch every year; business income earners can switch only once.
What deductions are available in the new regime?
Only standard deduction of ₹75,000 and employer NPS contribution (80CCD(2)). No 80C, HRA, home loan interest, 80D, or other deductions are available in the new regime.
When is the old regime better?
If your total deductions exceed ₹3.75-4 lakh (including 80C, HRA, home loan, 80D, NPS). Calculate for your specific situation — the breakeven varies by income level.
Can I switch between regimes?
Salaried individuals can choose each year while filing returns. Those with business income can switch only once — choosing old after new is a one-time option.
What about the 87A rebate in both regimes?
New regime: full tax rebate if taxable income ≤ ₹12 lakh (effectively ₹12.75L for salaried). Old regime: rebate if taxable income ≤ ₹5 lakh.