Which is better: Old or New Tax Regime?

Under current statutory tax slabs (Income-tax Act, 2025 framework), the New Tax Regime provides a ₹75,000 standard deduction and wider tax brackets (zero tax up to ₹7 Lakhs taxable income with 87A rebate). For most salaried taxpayers claiming under ₹3.75 Lakhs to ₹4.25 Lakhs in total deductions, the New Tax Regime yields lower total tax.

How much deductions do I need to make the Old Tax Regime worthwhile?

Typically, an individual with a CTC of ₹15 Lakhs needs at least ₹3.75 Lakhs to ₹4.25 Lakhs in combined 80C, 80D, HRA, and Section 24(b) home loan deductions for the Old Regime to match or beat the New Regime.

Current Statutory Slabs (Income-tax Act, 2025)

Old vs New Tax Regime Savings Optimizer

Instantly simulate your exact income tax under both regimes. Compare Section 80C, 80D, HRA, NPS, and home loan deductions against the enhanced ₹75,000 standard deduction in the New Regime.

Income & Eligible Deductions

Gross Annual Salary / CTC

₹

Section 80C (ELSS, EPF, PPF, LIC)Max ₹1.5L

₹

Section 80D (Health Insurance: Self + Parents)Max ₹75k

₹

House Rent Allowance (HRA) Exemption

₹

Section 24(b) Home Loan InterestMax ₹2L

₹

Section 80CCD(1B) Additional NPSMax ₹50k

₹

Recommended Choice

New Regime (Budget 2024)

Saves you ₹4,940 in annual taxes!

Old Regime

₹76,440

Effective: 6.4%

Std Deduction:₹50,000

Other Deductions:₹3,45,000

Taxable Income:₹8,05,000

New Regime (Current Statutory Slabs)

₹71,500

Effective: 6%

Std Deduction:₹75,000

Other Deductions:₹0 (Not allowed)

Taxable Income:₹11,25,000

Rule of Thumb Insight

To make the Old Regime beneficial at your income tier, you need total Chapter VI-A deductions of at least ₹3,75,000. Without large HRA or home loan interest, the New Regime is typically the clear winner.

Tax Guide

LTCG Tax Guide (Income-tax Act, 2025) →

Learn how the 12.5% LTCG and ₹1.25 Lakh exemption apply to your SIP returns.

Tax-Saving Tool

EPF Calculator →

Calculate your 8.25% retirement fund accumulation and employer matching.

Pension Tool

NPS Calculator →

Plan Section 80CCD(1B) ₹50k tax savings and Tier-1 pension corpus.

Income Tax Disclaimer: Tax calculations reflect the Finance (No. 2) Act, 2024 amendments including revised slab rates and the ₹75,000 standard deduction under Section 115BAC. Actual liability may vary based on surcharge tiers for incomes above ₹50 Lakhs and specific allowances.