Tax Regime Comparison
Old vs New Tax Regime Which is Better?
Compare old and new tax regimes for FY 2024-25. Understand the differences in tax slabs, deductions, and find out which regime saves you more tax.
Tax Slabs Comparison (FY 2024-25)
| Income Slab | Old Regime | New Regime |
|---|---|---|
| Up to ₹2,50,000 | Nil | Nil |
| ₹2,50,001 - ₹3,00,000 | 5% | Nil |
| ₹3,00,001 - ₹5,00,000 | 5% | 5% |
| ₹5,00,001 - ₹7,00,000 | 20% | 5% |
| ₹7,00,001 - ₹10,00,000 | 20% | 10% |
| ₹10,00,001 - ₹12,00,000 | 30% | 15% |
| ₹12,00,001 - ₹15,00,000 | 30% | 20% |
| Above ₹15,00,000 | 30% | 30% |
Cess: 4% on tax (both)Rebate 87A: Old up to ₹5L, New up to ₹7L
Deductions Availability
Old Regime Advantages
- 80C: Save ₹1.5L on PPF, ELSS, Insurance
- 80D: Health insurance deduction
- HRA exemption for renters
- Home loan interest deduction
- LTA for travel allowance
New Regime Advantages
- Lower tax rates across slabs
- Zero tax up to ₹7L (with rebate)
- Standard deduction of ₹50,000
- Simpler - no need to track deductions
- Good for those with minimal investments
Example: ₹12 Lakh Income
Old Regime
- Gross Income₹12,00,000
- Standard Deduction-₹50,000
- 80C (PPF, Insurance)-₹1,50,000
- 80D (Health Insurance)-₹25,000
- HRA-₹1,00,000
- Taxable Income₹8,75,000
- Tax Payable₹1,04,000
New Regime
- Gross Income₹12,00,000
- Standard Deduction-₹50,000
- No other deductions-₹0
- Taxable Income₹11,50,000
- Tax Payable₹85,800
In this case: New regime saves ₹18,200. But with home loan interest (₹2L), old regime would save ₹41,800. Your choice depends on your deductions!
Frequently Asked Questions
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Calculate Which Regime is Better for You
Use our income tax calculator to compare both regimes with your actual income and deductions.