Compare old vs new tax regime slabs, deductions, and savings for FY 2024-25. Use our calculator to pick the smarter tax option for your income.
Introduction: Which Tax Regime is Right for You in 2024-25?
Confused between old and new tax regimes for FY 2024-25? You’re not alone.
Every year, as the financial year-end approaches, salaried employees, freelancers, and even pensioners across India find themselves asking the same question — Which tax regime will help me save more money?
With the government offering two different income tax structures, selecting the right one can feel like navigating a maze. The old regime offers a wide range of deductions and exemptions, whereas the new regime tempts taxpayers with reduced tax rates but minimal deductions.
But here's the catch — one size doesn’t fit all. What works for someone earning ₹10 lakh with zero deductions might not work for another with ₹12 lakh and full deductions under Section 80C, HRA, or medical insurance. That’s where the Old vs New Tax Regime Calculator 2024-25 becomes crucial.
By comparing tax slabs, deductions, and net savings, this tool empowers you to make an informed tax-saving decision instead of relying on guesswork or hearsay.
Whether you're a:
- Middle-class salaried professional with investments in PPF and LIC,
- A freelancer juggling multiple income sources, or
- A senior citizen drawing pension and interest income,
In this guide, we’ll simplify the difference between both regimes, provide real-world comparisons, and show you how to use the Old vs New Tax Regime Calculator for FY 2024-25 to maximise your savings — without complex spreadsheets or confusion.
Let’s decode the numbers, cut through the jargon, and help you pick the most beneficial tax regime for your unique financial profile.
Old vs New Tax Regime Calculator
| Head | Details/ Amt. |
|---|---|
| Gross Income | |
| Exemptions u/s 10 A (HRA etc.) | |
| Professional Tax | |
| Net Income under Salaries | 0.00 |
| Standard Deduction (Auto Applied) | 50000 |
| Deductions u/s 80 C (PF, PPF, Ins, ELSS, NPS: Max Rs.150000) | |
| Deductions u/s 80 CCD (NPS: Max Rs. 50000/-) | |
| Deductions u/s 80 D (Health Insurance: Max Rs. 35000/- ) | |
| Deductions u/s 80 G (Eligible Donations) | |
| Deductions u/s 80 E (Education Loan Interest) | |
| Deductions u/s 80 TTA (FD/Post Office Interest: Max Rs. 40000/-) | |
| Tax Benefit u/s 24 (Home Loan Interest Paid: Max Rs. 200000/-) | |
| Total Deductions/Benefits | 0.00 |
What Is the Old vs New Tax Regime?
Before diving into the savings comparison, it’s essential to understand what exactly the old and new tax regimes mean for Indian taxpayers in FY 2024-25.
Old Tax Regime – The Traditional Structure
The old tax regime is what most taxpayers have followed for decades. It offers a range of deductions and exemptions under various sections of the Income Tax Act, including:
- Standard Deduction of ₹50,000
- Section 80C (₹1.5 lakh for investments in PPF, LIC, ELSS, etc.)
- HRA (House Rent Allowance)
- LTA (Leave Travel Allowance)
- Medical Insurance under Section 80D
- Education Loan Interest (80E)
- Home Loan Interest (Section 24)
These deductions reduce your taxable income, helping you save significantly — provided you make eligible investments or expenses. The old regime is ideal for salaried professionals, home loan borrowers, and those who actively invest in tax-saving instruments.
New Tax Regime – Simplified & Lower Rates
The new tax regime, introduced in Budget 2020, was designed to simplify taxation. It offers lower income tax rates but doesn’t allow most deductions or exemptions.
The slab structure under the new regime for FY 2024-25 (with effect under Section 115BAC) is:
| Income Range | Tax Rate (New Regime) |
|---|---|
| ₹0 – ₹3,00,000 | 0% |
| ₹3,00,001 – ₹6,00,000 | 5% |
| ₹6,00,001 – ₹9,00,000 | 10% |
| ₹9,00,001 – ₹12,00,000 | 15% |
| ₹12,00,001 – ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
In Budget 2023, the new regime was made default, and the standard deduction of ₹50,000 was extended to salaried and pensioners under it as well.
So, what does that mean for you?
Old vs New Tax Regime: Which Is Better for You?
Here's a quick comparison to help you decide:
| Criteria | Old Regime | New Regime |
|---|---|---|
| Deductions & Exemptions | Allowed (80C, HRA, 80D, etc.) | Mostly Not Allowed |
| Tax Slabs | Higher | Lower |
| Standard Deduction | ₹50,000 | ₹50,000 (only from FY 2023-24) |
| Best Suited For | Those with high deductions | Those with minimal or no deductions |
| Complexity | More documents & proofs required | Simpler, no documentation needed |
Who Should Choose What?
- Salaried individuals with investments and HRA ➜ Old Regime
- Freelancers or those with no deductions ➜ New Regime
- Senior citizens with interest income and 80D benefits ➜ Old Regime
- First jobbers without any tax planning ➜ New Regime
Still not sure which is better? That’s exactly where the Old vs New Tax Regime Calculator 2024-25 helps. It shows you a side-by-side tax comparison in seconds, based on your income and deductions.
By choosing the right regime, you could save thousands—if not lakhs—of rupees every year.
Latest Tax Slabs for FY 2024-25 (AY 2025-26)
Understanding the current tax slabs is crucial for effective tax planning in India. The Indian government continues to offer two distinct structures — the old and new tax regimes — each with different slabs, rates, and benefits. Whether you’re an investor looking to maximise your Section 80C deductions, or a salaried employee with limited claims, choosing the right slab directly affects your tax liability.
Let’s break down the latest tax slabs for FY 2024-25 to help you compare your options smartly.
Table 1: New Tax Regime Slabs (FY 2024-25)
Under the new tax regime, which is now the default option unless you opt for the old one, the income tax is calculated on concessional rates without most exemptions or deductions (except a few like standard deduction and NPS employer contribution under Section 80CCD(2)).
| Annual Income (₹) | Tax Rate (New Regime) |
|---|---|
| Up to ₹3,00,000 | 0% |
| ₹3,00,001 – ₹6,00,000 | 5% |
| ₹6,00,001 – ₹9,00,000 | 10% |
| ₹9,00,001 – ₹12,00,000 | 15% |
| ₹12,00,001 – ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Standard Deduction of ₹50,000 is now applicable under the new regime for salaried individuals and pensioners.
Table 2: Old Tax Regime Slabs (FY 2024-25)
The old regime follows a more traditional approach, offering deductions under Section 80C, 80D, HRA, home loan interest, etc. Tax is calculated after subtracting these deductions from your gross income.
| Annual Income (₹) | Tax Rate (Old Regime) |
|---|---|
| Up to ₹2,50,000 | 0% |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Senior citizens (60+ years) and super senior citizens (80+ years) enjoy a higher basic exemption limit under the old regime.
Difference in Slabs: Impact on High-Income Earners
For individuals with income above ₹50 lakh, the impact is more significant due to surcharge and cess. Under both regimes:
- Surcharge kicks in for income above ₹50 lakh
- Cess of 4% is levied on total tax payable
However, under the new regime, the government has capped the maximum surcharge at 25%, benefiting HNI (High Net-Worth Individuals). In contrast, the old regime may levy up to 37% surcharge, making a noticeable difference in net tax outgo for ultra-high earners.
Key Takeaways for Tax Planning in India:
- If you have minimal deductions, the new regime usually results in lower tax.
- If you’ve invested in PF, PPF, ELSS, NPS, pay for health insurance, or claim home loan interest, the old regime may still be beneficial.
- Use an online income tax calculator or the Old vs New Tax Regime Calculator 2024-25 to compare both instantly and decide what's best for you.
Pro Tip: Maximise your Section 80C deductions (up to ₹1.5 lakh) and combine with other options like 80D, 80E, and 24(b) in the old regime for optimal tax savings.
Looking for tax saving tips or unsure about which deductions you qualify for? A good calculator can help you decode everything based on your profile and save both time and money.
Old vs New Tax Regime Calculator 2024-25 (Free Tool)
Choosing between the old and new tax regimes can be tricky — especially with multiple income sources, deductions, and exemptions in play. That’s where the Old vs New Tax Regime Calculator 2024-25 comes to your rescue. This free online tool simplifies the comparison process and gives you a clear picture of your potential tax liability under both regimes — instantly and accurately.
What Inputs Does the Calculator Require?
The calculator is designed with Indian taxpayers in mind — whether you're a salaried professional, a freelancer, a business owner, or a pensioner. It asks for the following details:
| Input Field | Purpose |
|---|---|
| Annual Gross Income | Your total income from salary, freelancing, rent, etc. |
| Standard Deduction | ₹50,000 (auto-applied for salaried/pensioners in both regimes) |
| HRA Exemption | If you receive HRA and pay rent (old regime only) |
| Section 80C Deductions | EPF, PPF, ELSS, tuition fees, life insurance premium, etc. (old regime) |
| 80D & Other Deductions | Medical insurance, education loan, donations under 80G, etc. (old regime) |
| NPS Contributions | Employer & self contributions under Section 80CCD(1B)/(2) |
These are the most common deductions that help reduce taxable income under the old regime, while the new regime allows only a handful.
How Does the Calculator Work?
Once you enter your income and deduction details, the Old vs New Tax Regime Calculator 2024-25 does the following:
- Calculates your taxable income under both regimes
- Applies correct tax slabs and surcharge/cess based on FY 2024-25 rules
-
Displays a side-by-side comparison showing:
- Total tax payable in each regime
- Potential savings
- Recommended regime based on net tax outgo
This real-time tax comparison tool is ideal for early tax planning in India, and helps users make informed financial decisions with just a few clicks.
Why Use a Tax Comparison Calculator?
- No guesswork — get clear numbers instantly
- 100% accurate — based on latest government slab rates
- Updated for AY 2025-26 — works for current financial year
- Mobile-friendly — perfect for on-the-go professionals
- Free to use — no signup, no spam
Whether you’re claiming Section 80C deductions, calculating HRA exemptions, or figuring out your NPS tax benefits, this tool ensures you never overpay or underclaim.
Key Deductions Allowed Only in Old Regime
One of the biggest differences between the two regimes lies in available tax deductions. While the new tax regime under Section 115BAC offers lower tax rates, it does not allow most common exemptions and deductions that taxpayers in India have traditionally relied on for tax planning.
For those considering the Old vs New Tax Regime Calculator 2024-25, understanding this list is crucial. Let’s take a look:
Deductions NOT Available in the New Regime (But Allowed in the Old Regime)
| Deduction Section | Description |
|---|---|
| Section 80C | Investment in PPF, EPF, ELSS, LIC, tax-saving FD, tuition fees (up to ₹1.5L) |
| Section 80D | Premiums for health insurance for self, spouse, parents |
| Section 80E | Interest on education loans |
| Section 24(b) | Interest on home loan (up to ₹2L under ‘Self-Occupied Property’) |
| HRA Exemption | House Rent Allowance for salaried individuals |
| LTA Exemption | Leave Travel Allowance for domestic travel expenses |
| Standard Deduction | ₹50,000 deduction for salaried and pensioners |
| Professional Tax | Allowed as a deduction for salaried employees |
| 80G, 80GG, 80CCD(1B) | Donations, rent paid without HRA, NPS voluntary contributions |
Why Salaried People with High Deductions Prefer the Old Regime
If you're a salaried individual with investments under Section 80C, pay health insurance premiums, claim HRA, or have a home loan, you may save more under the old tax regime — despite its higher slab rates.
Using the Old vs New Tax Regime Calculator 2024-25 helps visualize this advantage by showing total tax savings when deductions are considered.
For instance:
- A salaried professional earning ₹10 lakh annually and claiming deductions worth ₹3.5 lakh may pay less tax under the old regime.
- But someone with no investments or deductions might benefit more from the new regime’s lower rates.
Pro Tip: The old regime is better suited for taxpayers who actively invest, have dependent family members, or own self-occupied homes with EMIs.
Benefits of Choosing the New Regime
With the introduction of the new tax regime in Budget 2020 and its further fine-tuning in Budget 2023, the government made a clear pitch for simplicity and transparency in personal taxation. For many taxpayers in India — especially the young, tech-savvy, and gig economy professionals — the new regime is emerging as a preferred option in FY 2024-25.
If you're exploring your options using the Old vs New Tax Regime Calculator 2024-25, here’s why the new tax regime might be the right choice for you:
Top Advantages of the New Tax Regime for FY 2024-25
| Benefit | Details |
|---|---|
| Zero Paperwork & Documentation | No need to keep proof of investments, rent receipts, or deduction claims. |
| Lower Tax Rates | Especially for income brackets up to ₹15 lakh — helps increase take-home pay. |
| Default Regime | From FY 2023-24 onwards, the new regime is treated as default unless opted out. |
| Ideal for New Job Joiners | Freshers and young employees who haven't yet built investment portfolios. |
| Great for Freelancers & Gig Workers | No need to worry about deduction rules and complex tax planning. |
| Transparent Tax Planning | Simple slab-based taxation without exemptions reduces confusion and errors. |
Who Should Choose the New Tax Regime?
- Young salaried professionals with fewer financial commitments
- Freelancers and consultants with irregular income streams
- People with no home loans or major deductions
- First-time taxpayers or job joiners
- Retirees or pensioners without significant deductions
For example, a gig worker earning ₹12 lakh annually without 80C investments or home loans can save more tax under the new regime, thanks to reduced slab rates and standard deduction of ₹50,000 now allowed under the new regime as well (from FY 2023-24).
Pro Tip: If your total deductions under the old regime are less than ₹3 lakh, there's a high chance you'll pay less tax in the new regime — but don’t guess. Use the Old vs New Tax Regime Calculator 2024-25 to get a clear comparison based on your exact numbers.
Old vs New Tax Regime: Detailed Comparison Table (FY 2024-25)
Now that we’ve covered both regimes in detail, it’s time to put them side by side. Whether you're a salaried employee, a freelancer, or a pensioner, this comparison table will help you decide which tax regime saves you more in FY 2024-25 (AY 2025-26).
Using the Old vs New Tax Regime Calculator 2024-25, we’ve computed tax liability at various income levels with and without common deductions like Section 80C, 80D, HRA, and standard deduction.
Assumptions:
- Taxpayer is below 60 years
- Eligible deductions claimed under old regime: ₹2.5 lakh (₹1.5L under 80C, ₹25K under 80D, ₹50K standard deduction, ₹25K HRA)
Tax Comparison Table (FY 2024-25): Old vs New Regime
| Annual Income | Old Regime (with ₹2.5L deductions) | New Regime (No Deductions) | Savings (Old vs New) |
|---|---|---|---|
| ₹7,00,000 | ₹0 (after rebate under Sec 87A) | ₹0 (after rebate under Sec 87A) | Same |
| ₹10,00,000 | ₹52,500 | ₹54,600 | ₹2,100 (Old Regime wins) |
| ₹15,00,000 | ₹1,17,000 | ₹1,04,000 | ₹13,000 (New Regime wins) |
| ₹20,00,000 | ₹2,47,500 | ₹2,60,000 | ₹12,500 (Old Regime wins) |
What the Comparison Reveals
- For income up to ₹7 lakh, both regimes offer full rebate under Section 87A.
- At ₹10 lakh, if you have good deductions, the old regime edges out slightly.
- At ₹15 lakh, the new regime offers more savings for those without significant deductions.
- At higher incomes like ₹20 lakh, if you maximize tax-saving deductions, the old regime becomes more beneficial.
Tax Planning Tip
Use trusted tools like the Old vs New Tax Regime Calculator 2024-25 to run your exact figures. What saves someone else money might not work for your financial setup.
HR Calcy Income Tax CalculatorAlso explore:
- Standard Deduction in the New Tax Regime (2024-25)
- Standard Deduction under Section 16(ia) of the Income Tax Act for AY 2024-25
Who Should Choose Which Tax Regime? (Use Cases with Real Examples)
Still wondering which regime is best for your situation in FY 2024-25?
Let’s simplify things with real-life scenarios using the Old vs New Tax Regime Calculator 2024-25 and basic tax planning logic.
Below are a few sample profiles that reflect common taxpayer categories in India — salaried professionals, homeowners, and those with or without investments.
Person A: Salaried Employee with Deductions
- Annual Income: ₹10,00,000
- Deductions: ₹1.5L under 80C + ₹50K Standard Deduction
- Total Deductions: ₹2L
- Recommended Regime: Old Tax Regime
- Why: With ₹2L in tax-saving investments, Person A reduces taxable income to ₹8L, resulting in lower overall tax under the old system.
Person B: Freelancer with No Deductions
- Annual Income: ₹12,00,000
- Deductions: None
- Recommended Regime: New Tax Regime
- Why: Person B has no loans or investments to claim deductions. The lower slab rates in the new regime mean less tax without needing documentation.
Person C: Home Loan + Investments
- Annual Income: ₹20,00,000
- Deductions: ₹1.5L (80C), ₹2L (Home Loan Interest under Section 24), ₹50K (Standard Deduction)
- Total Deductions: ₹4L
- Recommended Regime: Old Tax Regime
- Why: With high deductions, Person C brings taxable income down to ₹16L, making the old regime more tax-efficient, despite higher slab rates.
Quick Tax Planning Insights
- If you have loans, insurance, ELSS, or HRA benefits → the old regime is usually better.
- If you want simplified filing, lower rates, and no paperwork → the new regime fits well.
- Use tools like the Old vs New Tax Regime Calculator 2024-25 to test your own numbers.
Common Mistakes Taxpayers Make While Choosing Regime
Many individuals end up paying more tax than necessary simply because they overlook key steps while choosing between the old vs new tax regime for FY 2024-25. Whether you're a salaried employee, freelancer, or pensioner, it's important to avoid these common pitfalls to maximize your tax savings.
1. Not Using an Old vs New Tax Regime Calculator 2024-25
One of the biggest mistakes is not calculating tax under both regimes side by side.
A calculator like the [Insert Internal Link to HR Calcy Tax Calculator Tool] helps you input your income, deductions, and allowances to see real-time tax difference.
Tip: Use a free online income tax calculator tailored for Indian taxpayers to compare slabs and savings instantly.
2. Assuming the New Regime is Always Better
With its simplified slabs and zero paperwork, many assume the new tax regime is ideal. However, if you have HRA, 80C, 80D, or home loan interest deductions, the old regime may offer significantly more savings.
Tax planning India-style should be based on actual benefits—not assumptions.
3. Missing the Declaration Deadline
If you’re a salaried employee, you must declare your preferred tax regime at the beginning of the financial year to your employer.
Failing to do so may result in default tax being calculated under the new regime, even if the old regime suits you better.
This is a critical step for income tax planning, especially if you’re claiming deductions under Section 80C and others.
4. Choosing Based on Peer Advice
Each taxpayer's financial profile is different. Choosing your tax regime based on what a colleague or friend selected, without analysing your income and deductions, can lead to unnecessary tax outflow.
Always rely on personal data and reliable calculators—not hearsay.
Avoiding Mistakes = More Savings
Being mindful of these common errors can help you:
- Lower your net tax payable
- Align with the best tax-saving strategy for your situation
- Stay compliant and stress-free during tax season
For best results, use the Old vs New Tax Regime Calculator 2024-25, consult a professional if needed, and plan early in the year.
Tips to Maximise Tax Savings in 2024-25
Whether you choose the old tax regime or the new tax regime for FY 2024-25, strategic planning can help you save a substantial amount of tax. Here are expert-backed tips to help you optimize tax savings and make smarter financial decisions.
1. Start Tax Planning Early — Not in March!
Many taxpayers wait until March to make last-minute investments, often ending up with poor choices. For maximum tax savings, plan your investments at the start of the financial year (April 2024).
This helps you distribute investments evenly and pick high-return, tax-saving instruments.
2. Maximise Deductions If Choosing the Old Regime
If you're going with the old tax regime, take full advantage of all the available deductions under:
- Section 80C: Up to ₹1.5 lakh (PPF, ELSS, LIC, Tax-saving FDs)
- Section 80D: Health insurance premiums (self + family)
- HRA: Based on rent paid and city of residence
- Standard Deduction: ₹50,000 for salaried/pensioners
- Section 24(b): Home loan interest (up to ₹2 lakh)
Use these to bring down your taxable income and increase your in-hand salary.
3. For New Regime: Focus on Income Growth, Not Deductions
Since the new regime does not allow most deductions, the key is to increase your income via:
- Side gigs or freelance income
- Upskilling to land promotions or better roles
- Investing in growth-oriented mutual funds (taxed at LTCG, not slab rate)
Zero paperwork, lower rates, and easier filing make it ideal for those with minimal exemptions.
4. Use High-Performing Tax-Saving Instruments
Here are some of the most popular tax-saving investment options under Section 80C for the old regime:
| Instrument | Lock-in | Expected Returns | Tax Benefit |
|---|---|---|---|
| PPF | 15 yrs | ~7.1% (tax-free) | 80C |
| ELSS Mutual Funds | 3 yrs | 10-15% (market-linked) | 80C |
| 5-Yr Tax Saving FD | 5 yrs | 6.5-7.5% (taxable) | 80C |
| Term Insurance Premium | NA | NA | 80C |
| NPS | Till 60 yrs | 8-10% (tax-deferred) | 80C + 80CCD(1B) |
Always align investments with your risk appetite and financial goals — not just tax-saving.
Bonus Tip: Track All Expenses & Tax Receipts
Whether you're filing under the old or new regime, maintain a digital record of:
- Investment proofs
- Rent receipts
- Health insurance policy
- Loan statements
This makes ITR filing smoother and audit-proof, if needed.
Tax Planning India Style: Save Smart, File Easy
By following these tips and using a reliable Old vs New Tax Regime Calculator 2024-25, you can choose wisely and save more this financial year. Always aim to align your tax planning with your career goals, lifestyle needs, and long-term financial health.
Conclusion: Choose Smart, Save More in FY 2024-25
When it comes to choosing between the old and new tax regimes, there's no universal answer — it truly depends on your income, deductions, lifestyle, and financial goals. Whether you're a salaried employee, freelancer, pensioner, or a first-time taxpayer, the smartest move is to compare both regimes side-by-side before filing.
Key Takeaway:
- If you claim significant deductions (like under Section 80C, HRA, or home loan interest), the old tax regime may save you more.
- But if you have minimal investments and want a simpler filing process, the new regime could be your best bet.
Don’t wait until March 2025! Start your tax planning for India early to make the most of exemptions, rebates, and savings opportunities. Small financial decisions today can lead to big tax benefits tomorrow.
Call-to-Action: Save Big with Our Free Tax Regime Calculator!
Still unsure which regime fits you best?
Use our Free Old vs New Tax Regime Calculator now and discover your most tax-efficient choice for FY 2024-25 — in just seconds!
Plan smart, compare wisely, and let your income work for you — not the taxman.
FAQ
Can I switch regimes every year?
Yes, if you're a salaried employee, you can switch between the old and new tax regimes every financial year. However, if you have income from business or profession, you're allowed to switch only once in your lifetime unless you cease your business income.
What if I forget to declare my tax regime?
If you don’t declare your regime preference, your employer will default to the new tax regime while deducting TDS. But don’t worry — you can still choose your preferred regime while filing your Income Tax Return (ITR) before the deadline.
Which tax regime is better for pensioners in 2024-25?
It depends. If you're claiming standard deduction, medical insurance (80D), or Section 80C savings, the old regime may offer more tax savings. Use an income tax calculator to compare both regimes based on your pension and deductions.
Are home loan deductions allowed in the new regime?
No. Home loan interest (Section 24b) and principal repayment under Section 80C are not allowed under the new tax regime. These benefits are exclusive to the old tax regime.
What is the standard deduction under both regimes?
In FY 2024-25, standard deduction of ₹50,000 is allowed in both regimes for salaried individuals and pensioners. Earlier, it was only allowed in the old regime, but now it’s available in both, offering some relief to taxpayers in the new regime too.
How can I declare my tax regime to my employer?
Most employers collect regime preference via an investment declaration form at the start of the financial year. Make sure to submit your choice before the due date to avoid default TDS deductions.
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