Compare New Regime vs Old Regime and see exactly which saves you more this year.
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If your total deductions (80C + 80D + HRA + NPS etc.) exceed ~₹3.75 lakh, the old regime usually saves more. Below that threshold, the new regime's lower rates win. This calculator does the maths for you.
Under the new regime, a ₹75,000 standard deduction applies automatically from FY 2024-25 (up from ₹50,000). The old regime also allows ₹50,000 standard deduction for salaried employees.
Yes — the Section 87A rebate makes effective tax zero for income up to ₹7 lakh under the new regime (and up to ₹5 lakh under the old regime).
Surcharge applies above ₹50 lakh: 10% (₹50L–₹1Cr), 15% (₹1Cr–₹2Cr), 25% (₹2Cr–₹5Cr), 25% (above ₹5Cr under new regime). This calculator shows the base tax; consult a CA for surcharge on high incomes.
Salaried individuals can switch every year at the time of filing. Business owners can only switch once from old to new regime.
The India Income Tax Calculator for FY 2024-25 computes your income tax liability under both the Old Tax Regime and the New Tax Regime, then shows you which saves more. Enter your gross annual income, select your applicable deductions (Section 80C investments, HRA, home loan interest, NPS contributions, and other deductions available under the old regime), and the calculator instantly applies the correct tax slabs, the standard deduction, cess at 4%, and any applicable surcharge. The side-by-side comparison tells you your exact tax liability and take-home income under each regime so you can make an informed choice before your employer's investment declaration deadline.
India operates two parallel income tax regimes for individuals since FY 2020-21. The Old Tax Regime has higher tax rates but allows a wide range of deductions and exemptions — Section 80C (up to ₹1.5 lakh for PF, ELSS, PPF, life insurance etc.), HRA, home loan interest under Section 24(b) (up to ₹2 lakh), NPS (additional ₹50,000 under 80CCD(1B)), medical insurance premiums under Section 80D, and more. The New Tax Regime introduced in Budget 2020 and significantly enhanced in Budget 2023 has lower slab rates but allows almost none of these deductions (only the standard deduction of ₹75,000 for salaried employees from FY 2024-25 onwards, plus employer NPS contributions under 80CCD(2)). The New Tax Regime is now the default for FY 2024-25 unless you actively opt out.
For FY 2024-25, the New Tax Regime slabs are: nil tax up to ₹3 lakh, 5% from ₹3–7 lakh, 10% from ₹7–10 lakh, 15% from ₹10–12 lakh, 20% from ₹12–15 lakh, and 30% above ₹15 lakh. The Old Tax Regime slabs are: nil up to ₹2.5 lakh (₹3 lakh for senior citizens), 5% from ₹2.5–5 lakh, 20% from ₹5–10 lakh, and 30% above ₹10 lakh. On top of the slab tax, a 4% Health and Education Cess applies to everyone. A surcharge applies for incomes above ₹50 lakh, increasing progressively up to 25% surcharge on incomes above ₹5 crore (15% under the new regime).
It depends on your deductions. The New Tax Regime generally wins at lower income levels (up to ~₹7–8 lakh) due to the rebate under Section 87A (zero tax up to ₹7 lakh net income). The Old Regime tends to save more when total deductions exceed approximately ₹3.75–4 lakh, which includes Section 80C, HRA, home loan interest, and NPS. Use this calculator with your actual figures to find out definitively.
Yes. From FY 2023-24 onwards, the New Tax Regime is the default for salaried employees unless you submit Form 10-IEA to your employer to opt into the Old Regime. The deadline to opt out is typically the start of the financial year or your employer's declaration window.
The standard deduction is ₹75,000 for FY 2024-25 (increased from ₹50,000 in Budget 2024). It is available under both the Old and New Tax Regimes for salaried employees and pensioners, and is automatically deducted from gross salary before applying tax slabs.
Section 87A provides a full tax rebate (up to ₹25,000 under the New Regime, ₹12,500 under the Old Regime) if your net taxable income does not exceed ₹7 lakh (New Regime) or ₹5 lakh (Old Regime). This means individuals with income up to ₹7 lakh under the New Regime pay zero income tax after the rebate.
A surcharge applies on income tax (not total income) for high earners: 10% surcharge for income ₹50 lakh–₹1 crore, 15% for ₹1–2 crore, 25% for ₹2–5 crore, and 37% for above ₹5 crore (under the Old Regime). Under the New Regime, the maximum surcharge is capped at 25% for all income above ₹2 crore.