Compare New vs Old Tax Regime and find out which saves you more tax
| Income Range | Tax Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 – ₹7,00,000 | 5% |
| ₹7,00,001 – ₹10,00,000 | 10% |
| ₹10,00,001 – ₹12,00,000 | 15% |
| ₹12,00,001 – ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Standard deduction of ₹75,000 is available under New Regime from FY 2024-25. Rebate u/s 87A: No tax if taxable income ≤ ₹7,00,000.
From FY 2024-25, the New Tax Regime is the default. You must actively opt for the Old Regime if you have significant deductions. Here's a quick guide:
Your total deductions (80C + HRA + 80D + others) are less than ₹3.75 lakh. If you're a salaried employee with a simple tax profile and limited investments, the new regime typically results in lower tax for income up to ₹15 lakh.
You have a home loan (₹2L interest deduction under 24b), maximum 80C investments (₹1.5L), HRA exemption, 80D premiums, and NPS contributions under 80CCD(1B). These can collectively exceed ₹5–6 lakh in deductions, making the old regime beneficial.
Standard deduction increased to ₹75,000 (from ₹50,000) under the New Regime. Tax rebate under Section 87A extended to ₹7 lakh income under New Regime — meaning zero tax for income up to ₹7.75 lakh after standard deduction.