New Regime vs Old Regime Calculator

What changed in the new tax regime in Budget 2024?

Union Budget 2024 enhanced the new regime standard deduction from ₹50,000 to ₹75,000. New regime slabs remain: 0% (up to ₹3L), 5% (₹3-7L), 10% (₹7-10L), 15% (₹10-12L), 20% (₹12-15L), 30% (above ₹15L). The 87A rebate limit is ₹7L (vs ₹5L in old regime), so anyone with new-regime taxable income ≤ ₹7L pays zero tax.

Who benefits more from the old regime?

Old regime is better if your total deductions are large: high 80C investments (₹1.5L), significant HRA exemption (renting in metro), NPS contribution (₹50K extra via 80CCD(1B)), home loan interest (₹2L), and 80D health insurance. As a rule of thumb: if total deductions > ₹3.75L at ₹15L income or > ₹2.5L at ₹10L income, old regime usually wins.

Can I switch between regimes every year?

Salaried employees can switch between old and new regime every financial year by informing their employer at the start of the year. Business owners and those with professional income can switch only once — from new to old — and once they opt for old regime, switching back to new requires giving up the business income deductions permanently.

Which regime is better for most salaried employees?

For FY 2024-25, new regime is better for most salaried employees who don't have large deductions. At ₹10L income: if your deductions exceed ₹3.5L old regime wins; otherwise new regime wins. The new ₹75,000 standard deduction and ₹7L rebate make new regime the default choice for employees with limited 80C/HRA claims.