Which is better: New or Old tax regime for FY 2024-25?

It depends on your deductions. New regime has lower slab rates and ?50,000 standard deduction for salaried/Pensioners, but most deductions like 80C/80D/HRA are not allowed. If your total eligible deductions are high, Old could be better. This calculator compares both instantly.

Is 87A rebate available under both regimes?

Yes. Under New regime, if total income is up to ?7,00,000, tax after rebate is ?0. Under Old regime, if total income is up to ?5,00,000, tax after rebate is ?0.

Does the New regime allow 80C/80D or HRA?

No. The New regime disallows most deductions except standard deduction for salaried/pensioners. This tool disables 80C/80D/HRA under New regime automatically.

How is HRA exemption calculated?

HRA exemption (Old regime only) is the least of: (1) Actual HRA received, (2) Rent paid minus 10% of basic salary, (3) 50% of basic for metro cities (40% for non-metro).

Is surcharge included?

You can toggle surcharge. For high income, surcharge applies on tax (plus cess). Highest surcharge under New regime is 25%; under Old it can go up to 37%. This tool estimates based on thresholds.

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Income Tax Calculator India

FY 2024-25 (AY 2025-26) • Compare New vs Old Regime • Get instant tax calculations with deductions

🆕 Updated for 2024-25 ⚡ Instant calculation 📊 Regime comparison 💰 Tax-saving tips

₹7,00,000

New Regime Tax-Free Limit

₹5,00,000

Old Regime Tax-Free Limit

₹50,000

Standard Deduction

₹1,50,000

Max 80C Deduction

💰 Enter Your Details

💵 Annual Income

Annual Gross Income (₹) • Before any deductions

₹

⚙️ Calculation Settings

Standard Deduction (₹50,000)

For salaried employees & pensioners

Apply Surcharge

For high income (>₹50L)

Tax Regime Calculation

📋 Old Regime Deductions

⚠️ Note: These deductions apply only to the Old Regime. They're automatically ignored in New Regime calculations.

💰 Tax Saving Investments

Section 80C (max ₹1,50,000) • EPF, PPF, ELSS, Life Insurance, NSC

₹

Remaining: ₹1,50,000

Section 80D - Health Insurance • Self, family, parents premium

₹

NPS Additional (80CCD(1B)) (max ₹50,000) • Over & above 80C limit

₹

🏠 HRA Exemption

Fill if you receive HRA and pay rent. We'll calculate the exempt amount automatically.

Basic Salary (₹/year)

₹

HRA Received (₹/year)

₹

Rent Paid (₹/year)

₹

Metro City

50% of basic salary limit (40% for non-metro)

🏡 Home Loan Interest

For self-occupied property. Maximum deduction: ₹2,00,000 per year.

Interest Paid (₹/year)

₹

Remaining: ₹2,00,000

📊 Total Deductions Summary

₹0

Total Deductions

₹0

Taxable Income

Tax Savings

⚡ Auto-calculate on input change

💡 Smart Tax Saving Tips for FY 2024-25

🎯 Section 80C Investments

ELSS Mutual Funds: 3-year lock-in, potential for higher returns
PPF: 15-year lock-in, tax-free returns (~7-8%)
EPF: Automatic deduction, employer matching
NSC: 5-year lock-in, guaranteed returns
Life Insurance: Term + investment combo

🏥 Health Insurance (80D)

Self & Family: Up to ₹25,000 (₹50,000 if senior citizen)
Parents: Additional ₹25,000 (₹50,000 if senior citizen)
Preventive Health Check: Extra ₹5,000 deduction
Total Max: Up to ₹1,00,000 for senior citizen families

🏠 Home Loan Benefits

Principal (80C): Up to ₹1,50,000
Interest (24b): Up to ₹2,00,000 (self-occupied)
First-time Buyer (80EE): Additional ₹50,000 interest
Affordable Housing (80EEA): Additional ₹1,50,000

💰 Additional Deductions

NPS (80CCD(1B)): Extra ₹50,000 over 80C
Education Loan (80E): Full interest amount
Donations (80G): 50-100% of donation amount
Disability (80U): ₹75,000-₹1,25,000

⚖️ New vs Old Regime: Which Should You Choose?

🆕 Choose New Regime If:

Your total deductions are less than ₹2,50,000
You don't have home loan or major investments
You prefer simplicity in tax filing
Your income is between ₹7-15 lakhs
You're a young professional with minimal investments

Key Benefits:

Lower tax rates, ₹50,000 standard deduction, ₹7L tax-free income

📊 Choose Old Regime If:

Your total deductions exceed ₹2,50,000
You have home loan with high interest
You invest heavily in 80C instruments
You pay high HRA or have medical expenses
You're in higher income brackets (>₹15L)

Key Benefits:

Multiple deductions, HRA exemption, home loan benefits

💡 Pro Tip

You can switch between regimes every year, but once you choose the new regime, you cannot claim deductions like HRA, 80C, etc. Use this calculator to compare both regimes with your actual numbers before deciding!

📊 Income Tax Slabs FY 2024-25 (AY 2025-26)

🆕 New Regime Tax Slabs

₹0 - ₹3,00,0000%

₹3,00,001 - ₹6,00,0005%

₹6,00,001 - ₹9,00,00010%

₹9,00,001 - ₹12,00,00015%

₹12,00,001 - ₹15,00,00020%

Above ₹15,00,00030%

Rebate: No tax if total income ≤ ₹7,00,000

📊 Old Regime Tax Slabs

₹0 - ₹2,50,0000%

₹2,50,001 - ₹5,00,0005%

₹5,00,001 - ₹10,00,00020%

Above ₹10,00,00030%

Rebate: No tax if total income ≤ ₹5,00,000
Plus: All deductions (80C, 80D, HRA, etc.)

Additional: 4% Health & Education Cess on total tax + surcharge (if applicable)

⚠️ Important Notes & Disclaimers

This calculator uses FY 2024-25 (AY 2025-26) tax slabs and rates
4% Health & Education Cess applies on tax amount plus surcharge
Section 87A rebate: ₹7,00,000 limit for New Regime, ₹5,00,000 for Old Regime
Old regime deductions are capped per Income Tax rules (80C: ₹1.5L, NPS 80CCD(1B): ₹50K, etc.)
HRA exemption calculated as minimum of: actual HRA, rent paid - 10% of basic, 50%/40% of basic
Home loan interest deduction limited to ₹2,00,000 for self-occupied property
Surcharge rates: 10% (₹50L-₹1Cr), 15% (₹1Cr-₹2Cr), 25% (₹2Cr-₹5Cr), 37%/25% (>₹5Cr)
Calculations are indicative only. Consult a tax professional for accurate filing

How this Income Tax calculator works

This calculator estimates your India income tax for FY 2024�25 (AY 2025�26) under both the New and Old regimes. Enter your annual gross income, choose whether to include the standard deduction (?50,000 for salaried/pensioners), and optionally toggle surcharge for high incomes. For the Old regime you may enter deductions such as Section 80C (up to ?1,50,000), Section 80D (eligible health insurance premiums), additional NPS under Section 80CCD(1B) (up to ?50,000), HRA details to compute the exempt portion, and home-loan interest (self-occupied: up to ?2,00,000 set-off). The tool compares total tax in New vs Old and shows monthly TDS and effective tax rate.

New regime slabs: 0�?3L: 0%; ?3�6L: 5%; ?6�9L: 10%; ?9�12L: 15%; ?12�15L: 20%; >?15L: 30%. Old regime slabs: 0�?2.5L: 0%; ?2.5�5L: 5%; ?5�10L: 20%; >?10L: 30%. Health & Education Cess of 4% applies on tax plus surcharge. Section 87A rebate makes tax ?0 when total income is up to ?7,00,000 (New) or up to ?5,00,000 (Old). Surcharge, if enabled, applies above ?50L, ?1cr, ?2cr and ?5cr (with a 25% cap in the New regime).

Examples

Example 1: Income ?7,20,000, salaried, standard deduction on, no other deductions. New regime taxable = ?6,70,000 ? 87A rebate not available (above ?7L threshold), tax per slabs + 4% cess. Old regime taxable = ?6,70,000 after standard deduction; basic tax computed per old slabs; compare totals to choose the lower.

Example 2: Income ?12,00,000 with Old-regime deductions: 80C ?1,50,000, 80D ?25,000, NPS 80CCD(1B) ?50,000, HRA exemption ?1,20,000, home-loan interest ?2,00,000. Old regime taxable income reduces substantially; New regime disallows most of these (only standard deduction), so Old may be lower. Use �Compare New vs Old� to see which wins.

FAQs

Which regime should I choose?

If your total eligible deductions (80C, 80D, NPS 1B, HRA, home-loan interest) are high, the Old regime often results in lower tax. If deductions are minimal, the New regime�s lower rate structure and standard deduction can be better. This tool compares both.

Is HRA allowed in the New regime?

No. Most deductions, including HRA, are not allowed in the New regime (only the standard deduction for salaried/pensioners is applied when selected). HRA exemption (Old only) is the least of: actual HRA received; rent paid - 10% of basic; 50% of basic for metro (40% non-metro).

Are results exact?

They are indicative for planning. Personal nuances (perquisites, set-offs, multiple incomes, rounding, TDS/TCS timing) may alter outcomes. Consult a tax professional for your filing.