Old vs New Tax Regime Calculator FY 2025-26
Compare your income tax liability under the Old and New Tax Regimes instantly. See exactly which regime saves you more money for FY 2025-26 (AY 2026-27).
What this tool does: Calculates and compares tax across both regimes side-by-side.
Required Inputs: Gross Salary, Section 80C deductions (PPF, LIC), Section 80D (Health Insurance), and HRA/LTA exemptions.
Best Choice: New Regime
Based on your inputs, the New Regime offers lower tax liability. We recommend consulting a tax advisor for final decisions.
Old Tax Regime
With all deductions and exemptions
New Tax Regime
Standard deduction only
Detailed Comparison
Key Highlights for FY 2024-25:
- New Regime: Standard deduction is now ₹50,000 for salaried employees.
- New Regime: Tax slabs have been revised to benefit mid-income earners.
- Old Regime: Still beneficial if you have home loan interest and heavy 80C/80D investments.
- Rebate u/s 87A: Income up to ₹7L (New) and ₹5L (Old) is tax-free.
Purani ya Nayi Tax Regime: Kaun Si Behtar Hai?
Every year, salaried individuals and professionals face the dilemma of choosing between the Old Tax Regime and the New Tax Regime. In the Budget 2024, the Finance Minister made the New Tax Regime more attractive by modifying the slabs and allowing a ₹50,000 standard deduction. However, the Old Regime still holds value for those who have heavy investments like Home Loans, LIC, ELSS, and PPF.
How to Use the Tax Regime Comparison Calculator?
Income Details
Enter your total Gross Annual Salary. The ₹50,000 standard deduction is automatically applied to both regimes.
Deductions
Input your 80C (PPF, ELSS), 80D (Health Insurance), and HRA exemptions. Use our HRA Calculator if unsure.
Compare & Save
The calculator will instantly show you the exact tax liability under both regimes and tell you which one saves you more money.
Major Differences: Old vs New Regime (FY 2024-25)
- Rebate Limit: Under the New Regime, income up to ₹7,00,000 is 100% tax-free (due to Section 87A rebate). Under the Old Regime, this limit is ₹5,000,000.
- Default Regime: From FY 2023-24, the New Tax Regime is the default. If you do not explicitly inform your HR or select Old Regime while filing ITR, your tax will be calculated as per the New Regime.
- Deductions Allowed: The Old Regime allows ~70 exemptions (like HRA, LTA, 80C, 80D). The New Regime allows almost none, except the ₹50,000 Standard Deduction and Employer NPS contribution (80CCD(2)).
- Want to check how your CTC translates to monthly pay after these taxes? Use our Take Home Salary Calculator.
Frequently Asked Questions (FAQs)
Clear your doubts before deciding your tax regime.
Kya main har saal tax regime change kar sakta hu?
If you are a Salaried Employee (with no business/professional income), YES! You can switch between the Old and New regime every year while filing your ITR. However, if you have business income (Freelancers/Consultants under 44ADA), you can only switch back to the Old Regime once in a lifetime.
Agar meine April me New Regime select kiya, toh kya ITR file karte waqt badal sakta hu?
Yes, absolutely. Whatever regime you declare to your employer in April is only for TDS (Tax Deducted at Source) calculation purposes. At the end of the year, while actually filing your ITR (in July), you can calculate tax under both regimes and choose the one that gives you a maximum refund or lowest liability.
₹7 Lakh tak New Regime me koi tax nahi hai, toh ITR file karna zaroori hai?
Yes! The basic exemption limit in the New Regime is still ₹3 Lakhs. The ₹7 Lakh figure is because you get a "Rebate" (discount) under section 87A for the tax calculated between ₹3L and ₹7L. If your income crosses ₹3 Lakhs, filing an ITR is mandatory by law, even if your final tax liability is zero.
Home Loan interest ka deduction kis regime me milta hai?
Deduction for Home Loan Interest (up to ₹2 Lakhs under section 24b) for a Self-Occupied property is ONLY available in the Old Tax Regime. The New Regime does not allow this deduction. If you are paying a heavy EMI, the Old Regime usually turns out to be more beneficial.
Konse income level par Old Regime behtar hoti hai?
A rule of thumb for FY 2024-25: If your salary is above ₹7.5 Lakhs AND your total deductions (HRA + 80C + 80D + Home Loan) are more than ₹3,75,000, then the Old Regime is generally better. If your total deductions are less than ₹1,50,000, the New Regime is almost always better.
Kya NPS dono regime me tax bachata hai?
Yes! Section 80CCD(2) (Employer's contribution to NPS) is deductible in both Old and New Tax Regimes. However, Section 80CCD(1B) (self contribution of ₹50,000) is ONLY allowed in the Old Tax Regime.
Standard Deduction kitni hai FY 2024-25 me?
Salaried individuals aur pensioners ke liye Standard Deduction ₹50,000 hai. Ye deduction ab Old aur New dono Tax Regimes me milti hai. Isse aapki taxable income direct ₹50k kam ho jati hai.
Section 87A rebate kaise kaam karti hai?
New Regime me agar aapki income ₹7L tak hai, toh aapka tax zero ho jata hai. Old Regime me ye limit ₹5L hai. Ye "Rebate" hai, jiska matlab hai ki calculative tax par aapko discount mil jata hai.