Enter your salary and deductions — get instant side-by-side comparison with a clear recommendation on which regime saves you more tax this year.
The Union Budget 2024 made significant changes to the new tax regime, making it more attractive for a larger segment of salaried employees. The standard deduction was raised to ₹75,000, and the basic exemption limit under the new regime was kept at ₹3 lakh. Understanding the break-even point between the two regimes is now the single most important tax decision for every salaried Indian.
| Income Slab | Tax Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 to ₹7,00,000 | 5% |
| ₹7,00,001 to ₹10,00,000 | 10% |
| ₹10,00,001 to ₹12,00,000 | 15% |
| ₹12,00,001 to ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Rebate under Sec 87A: No tax for income up to ₹7 lakh in new regime. Standard deduction of ₹75,000 available.
For TDS purposes, you inform your employer at the beginning of the financial year (April). You cannot change it for TDS during the year. However, when filing your ITR (July-September), you can choose the regime that is most beneficial — irrespective of what you declared to your employer.
Yes. Since FY 2023-24, the new tax regime is the default regime. If you do not explicitly opt for the old regime, you will be taxed under the new regime. To choose the old regime, you must explicitly indicate this to your employer or in your ITR.
From FY 2023-24, the New Tax Regime became the default regime for salaried individuals in India. However, the old regime can still save more tax for people with high HRA, 80C investments, home loan interest, NPS contributions, or other deductions. This calculator tells you exactly which regime saves more for your specific income and deduction profile.
It depends on your deductions. If total deductions (HRA + 80C + 80D + home loan interest) exceed ~3–3.5 lakh, old regime typically saves more. Below that, new regime wins. Use this calculator for your exact number.
0–3L: Nil. 3–7L: 5%. 7–10L: 10%. 10–12L: 15%. 12–15L: 20%. 15L+: 30%. Plus, income up to ₹12L is tax-free due to the enhanced 87A rebate announced in Budget 2025.
No. HRA exemption is not available in the new regime. Only the standard deduction (₹75,000) and 80CCD(2) (employer NPS contribution) are available. This is why old regime benefits those who pay high rent.
Very few: Standard deduction (₹75,000 for salaried), 80CCD(2) for employer NPS, deduction on family pension (₹25,000 or 1/3 of pension), and a few others. All major deductions like 80C, 80D, HRA, and home loan interest are NOT available.
Yes. If you don't explicitly choose old regime by filing Form 10-IEA before filing your ITR, you'll be taxed under the new regime. Salaried employees can inform their employer at the start of the year.
Salaried employees can switch between old and new regime every year. However, individuals with business income can switch to old regime only once — after that, switching back to new regime is permanent.
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The single biggest tax decision every salaried Indian makes at the start of the year: which regime? The new regime is default since FY 2023-24 — if you don't declare a choice, your employer deducts TDS under new regime. The new regime offers lower slab rates but removes almost all deductions: no 80C, no HRA, no Section 24b home loan interest, no 80D, no NPS 80CCD(1B). Only the standard deduction (₹75,000 in FY 2025-26) remains.
The old regime wins when total deductions exceed the breakeven threshold for your income slab. At ₹10L annual income, the breakeven is approximately ₹2.75L in deductions. Most salaried Indians with home loans, HRA exemption, and full 80C have ₹3.5L+ in deductions — making old regime clearly better. At ₹6L income or below, the new regime's 87A rebate makes tax zero — no calculation needed.