Old vs New Tax Regime — Quick Comparison
India has two income tax regimes for individuals since FY 2020-21. The new regime (default from FY 2023-24) offers lower slab rates but removes most deductions. The old regime allows deductions like 80C, HRA, and home loan interest.
New Tax Regime Slabs (FY 2024-25)
- Up to ₹3 lakh → Nil
- ₹3–7 lakh → 5%
- ₹7–10 lakh → 10%
- ₹10–12 lakh → 15%
- ₹12–15 lakh → 20%
- Above ₹15 lakh → 30%
Section 87A rebate: Zero tax for income up to ₹7 lakh under new regime.
Old Tax Regime Slabs (FY 2024-25)
- Up to ₹2.5 lakh → Nil
- ₹2.5–5 lakh → 5%
- ₹5–10 lakh → 20%
- Above ₹10 lakh → 30%
Which Regime Saves More Tax?
New regime wins if you have few deductions (e.g., income above ₹15L with <₹3.75L in deductions). Old regime wins if you maximise 80C (₹1.5L), HRA, home loan interest, and NPS. Use our Income Tax Calculator to compare both instantly.
Key Deductions Available ONLY in Old Regime
- Section 80C — ₹1.5 lakh (LIC, PPF, ELSS, home loan principal)
- Section 80D — Health insurance premium
- HRA — House Rent Allowance
- Section 24b — ₹2 lakh home loan interest
- Section 80CCD(1B) — ₹50,000 extra NPS contribution
Decision Rule of Thumb
If your total deductions exceed ₹3.75 lakh (for income ₹15L+), old regime likely saves more. Otherwise switch to new regime. Always calculate both before filing ITR.