Old vs New Regime Income Tax Calculator – FY 2024-2025

Breadcrumb Abstract Shape
Breadcrumb Abstract Shape

Old vs New Regime Tax Calculator (FY 2024-25)

Salary Details for HRA Calculation

Old Regime Deductions

Recommendation

Old Regime

Effective Rate of Tax: 0%

New Regime

Effective Rate of Tax: 0%

Detailed Working Sheet

Old Regime Computation

New Regime Computation

When to Choose Old Regime

  • Fully utilising ₹1,50,000 under Section 80C.
  • Claiming ₹50,000 under NPS 80CCD(1B).
  • Paying home loan interest up to ₹2,00,000.
  • Claiming HRA exemption on rent paid.
  • Claiming deductions under 80D, 80E, 80G.
  • Total deductions exceed ₹3–4 lakhs annually.

Best suited for disciplined investors with structured tax planning.

When to Choose New Regime

  • Prefer simplified tax structure.
  • Do not claim major deductions.
  • Want higher monthly take-home salary.
  • No housing loan or HRA claims.
  • Prefer easier compliance and planning.

Ideal for salaried individuals with minimal deductions.

The Old Regime rewards structured investments and tax planning, while the New Regime benefits individuals seeking simplicity and improved immediate cash flow. The correct choice depends on your deduction profile, not merely your income level.

Frequently Asked Questions – Old vs New Tax Regime

1. Which tax regime is better – Old or New?


The better tax regime depends on your total eligible deductions.
If your deductions exceed approximately ₹3–4 lakhs, the Old Regime may result in lower tax liability.
If you do not claim major deductions, the New Regime often provides better take-home salary and simplified tax calculation.

2. Can I switch between Old and New Tax Regime every year?

Salaried individuals can choose between the Old and New Tax Regime every financial year. However, individuals with business income have restrictions on switching regimes multiple times.

3. Is HRA exemption allowed under the New Tax Regime?


No. HRA exemption is not available under the New Tax Regime.
It can only be claimed under the Old Tax Regime.

4. Is Section 80C deduction available under the New Regime?

No. Section 80C deductions (such as ELSS, PPF, LIC, EPF investments) are not allowed under the New Tax Regime. These deductions are available only under the Old Tax Regime.

5. What is the rebate under Section 87A in the New Regime?


Under the New Tax Regime, individuals with taxable income up to ₹7,00,000 can claim rebate under Section 87A,
which may reduce tax liability to zero.

6. Is standard deduction available in both regimes?

Yes. Standard deduction of ₹50,000 (Old Regime) and ₹75,000 (New Regime as applicable) is available for salaried individuals.

7. How does marginal relief work in case of surcharge?


Marginal relief ensures that the additional tax payable due to surcharge does not exceed
the income earned above the surcharge threshold.
It protects taxpayers from disproportionately high tax at income levels slightly above surcharge limits.