New vs Old Tax Regime Calculator (India FY 2024–25)
New vs Old Tax Regime Calculator (India FY 2024–25)
Our New vs Old Tax Regime Calculator for FY 2024–25 helps you compare your income tax liability instantly under both regimes so you can choose the one that benefits you most.
Understanding the Two Tax Regimes
In India, taxpayers can choose between:
- Old Tax Regime – Higher tax rates but with multiple deductions and exemptions like Section 80C, 80D, HRA, and more.
- New Tax Regime – Lower tax rates but very few deductions allowed.
The choice depends on your income structure and the amount of tax-saving investments you make.
How to Use the New vs Old Tax Regime Calculator
- Enter Your Annual Income – Salary, business income, or total earnings.
- Enter Your Deductions – Only applicable for Old Regime.
- Click Calculate – Instantly get tax payable under both regimes.
- Compare Results – See which regime saves you more tax.
Tax Slabs for FY 2024–25
Old Tax Regime (with deductions)
- Up to ₹2.5 lakh – Nil
- ₹2.5 lakh to ₹5 lakh – 5%
- ₹5 lakh to ₹10 lakh – 20%
- Above ₹10 lakh – 30%
Rebate under Section 87A available for income up to ₹5 lakh.
New Tax Regime (without major deductions)
- Up to ₹3 lakh – Nil
- ₹3 lakh to ₹6 lakh – 5%
- ₹6 lakh to ₹9 lakh – 10%
- ₹9 lakh to ₹12 lakh – 15%
- ₹12 lakh to ₹15 lakh – 20%
- Above ₹15 lakh – 30%
Rebate under Section 87A available for income up to ₹7 lakh.
Calculation Formula
Tax Payable = (Taxable Income × Tax Rate) + 4% Cess
Where:
- Taxable Income = Gross Income – Deductions (Old Regime only)
- Cess = 4% Health & Education Cess
Benefits of Using the New vs Old Tax Regime Calculator
- Accurate comparison in seconds
- Helps you choose the most tax-efficient regime
- Based on latest FY 2024–25 tax rules
- Easy for salaried, self-employed, and freelancers
Example: Which Regime Saves More?
If your annual income is ₹10 lakh:
- Old Regime – ₹1,12,500 tax after deductions
- New Regime – ₹75,000 tax (no deductions)
In this example, the New Regime is better unless you have high deductions.
Frequently Asked Questions (FAQs)
Which tax regime is better for me?
If you have large deductions like 80C, 80D, home loan interest, etc., the Old Regime might be better. Otherwise, the New Regime usually results in lower taxes.
Can I switch regimes every year?
Yes, salaried individuals can switch regimes every financial year.
Does this calculator include cess and rebate?
Yes, it includes 4% cess and Section 87A rebate.
Final Thoughts
Choosing between the Old and New Tax Regime can significantly impact your take-home income. Our calculator makes this decision easier by showing a side-by-side comparison.