Old vs New Tax Regime Calculator - Which is Better for You?
Compare old and new income tax regimes for India. Calculate which regime saves more tax based on your income, deductions, and investments. Includes all sections 80C, 80D, HRA, home loan benefits, and detailed tax breakdown with instant comparison.
📅 Updated: December 2025✓ FY 2024-25 Tax Slabs🇮🇳 India Income Tax
Note: Same slabs for all age groups Standard deduction: ₹50,000
Old vs New Tax Regime: Complete Guide for FY 2024-25
Expert Note: This calculator is updated with the latest Income Tax Act provisions for FY 2024-25 (AY 2025-26) as per Finance Act 2024. All tax slabs, deductions, and exemptions reflect current Indian tax laws.
The Indian government introduced the new tax regime in Budget 2020 to simplify income tax calculations. Taxpayers can now choose between the old tax regime (with multiple deductions) and the new tax regime (with lower tax rates but fewer deductions). The choice depends on your income level, investments, and tax-saving deductions.
For FY 2024-25, the new tax regime has been made the default option, but taxpayers can still opt for the old regime if it's more beneficial. Our calculator helps you compare both regimes instantly and shows which one saves more tax based on your specific financial situation.
Key Differences Between Old and New Tax Regime
📊 Old Tax Regime
Basic exemption: ₹2.5L / ₹3L / ₹5L (age-based)
Multiple deductions allowed (80C, 80D, HRA, etc.)
Higher tax rates but more tax-saving options
Best for those with high investments
Allows home loan interest deduction
HRA exemption available
📈 New Tax Regime
Basic exemption: ₹3L (all age groups)
Only ₹50,000 standard deduction allowed
Lower tax rates, simplified slabs
Best for those with minimal deductions
No home loan interest deduction
No HRA exemption
Tax Slabs Comparison FY 2024-25
Old Tax Regime Slabs
Up to ₹2.5LNil
₹2.5L - ₹5L5%
₹5L - ₹10L20%
Above ₹10L30%
*Senior citizens: ₹3L exemption, Super senior: ₹5L exemption
New Tax Regime Slabs
Up to ₹3LNil
₹3L - ₹6L5%
₹6L - ₹9L10%
₹9L - ₹12L15%
₹12L - ₹15L20%
Above ₹15L30%
*Same slabs for all age groups
Tax Deductions Available (Old Regime Only)
Section 80C (Max: ₹1,50,000)
• PPF, EPF, VPF contributions
• ELSS mutual funds
• Life insurance premiums
• NSC, tax-saving FDs
• Home loan principal repayment
• Tuition fees (2 children max)
Section 80D (Health Insurance)
• Self & family: Up to ₹25,000
• Parents (below 60): ₹25,000
• Parents (senior): ₹50,000
• Preventive health checkup: ₹5,000
Section 80CCD(1B)
• Additional NPS: ₹50,000
• Over and above 80C limit
• Total deduction: ₹2,00,000 possible
Home Loan Benefits
• Principal: ₹1.5L (under 80C)
• Interest: ₹2L (Section 24)
• First-time buyer: +₹50K (80EE)
• Total benefit: Up to ₹3.5L
HRA Exemption
• Minimum of 3 calculations
• Metro: 50% of salary
• Non-metro: 40% of salary
• Rent - 10% of salary
Other Deductions
• 80E: Education loan interest
• 80G: Donations to charity
• 80TTA: Savings interest (₹10K)
• 80TTB: Senior citizens (₹50K)
How to Choose the Right Tax Regime?
✅Choose New Regime If:
Your annual income is below ₹7.5 lakh
You have minimal tax-saving investments
You don't pay house rent or have HRA
You prefer simplicity over tax planning
Your total deductions are less than ₹2.5 lakh
✅Choose Old Regime If:
You have high investments in 80C instruments
You pay significant house rent (HRA benefit)
You have a home loan (interest + principal deduction)
Your total deductions exceed ₹2.5 lakh
You are a senior citizen with medical expenses
💡Pro Tip:
Use our calculator above to input your exact income and deductions. The calculator will automatically show which regime saves more tax and by how much. You can switch between regimes every year, so choose the one that benefits you most for the current financial year.