Compare taxable liabilities side-by-side between the Old Tax Regime and the New Tax Regime (FY 2024-25 / FY 2025-26).
Regime Choice Recommendation: You can save approximately ₹0 in taxes this year by picking the Old Regime based on your input calculations.
India enforces a dual-track income tax system. Salaried employees can select which track to follow to minimize tax deductions.
| Slabs (New Regime FY 2024-25) | New Rate | Slabs (Old Regime) | Old Rate |
|---|---|---|---|
| Up to ₹3,00,000 | 0% | Up to ₹2,50,000 | 0% |
| ₹3,00,001 to ₹7,00,000 | 5% | ₹2,50,001 to ₹5,00,000 | 5% |
| ₹7,00,001 to ₹10,00,000 | 10% | ₹5,00,001 to ₹10,00,000 | 20% |
| ₹10,00,001 to ₹12,00,000 | 15% | ||
| ₹12,00,001 to ₹15,00,000 | 20% | Above ₹10,00,000 | 30% |
| Above ₹15,00,000 | 30% | — | — |
Under the Budget 2024 revisions, the standard deduction for salaried individuals was raised to ₹75,000 for the New Regime. The Old Regime standard deduction remains fixed at ₹50,000.
Section 87A offers tax rebates. In the New Regime, if taxable income is <= ₹7,00,000, your net taxable liability becomes zero. Under the Old Regime, the rebate applies only up to ₹5,00,000.
Generally, if you claim significant deductions (e.g., Section 80C, Section 24b home loans, health premium insurance) exceeding ₹3,75,000 in total, the Old Tax Regime may be better. For low or zero deductions, the New Tax Regime is usually more optimized.