Calculate your income tax under the new regime slab for FY 2024–25. Check zero tax eligibility, rebate rules, and choose the best option smartly.
New Regime Tax Calculator
| Head | Amount |
|---|---|
| Gross Income | |
| Payee Type | |
| Financial Year | |
| Standard Deduction | 50000 |
| Taxable Income | 0.00 |
Why the New Regime Matters in FY 2024–25
A new financial year brings new priorities—and for salaried individuals, freelancers, and pensioners in India, tax planning tops the list. The New Regime Tax Calculator has become an essential tool for working professionals after the Central Government made the new tax regime the default option from April 2023 onwards.
While this regime promises a simplified structure and reduced tax liability for many, the real question for most individuals remains:
“Will I save more in the new tax regime or stick to the old one?”
This article gives you a fully updated, practical guide to the new tax system, along with an expert breakdown of how the calculator works, who benefits most, and how to make the right decision for FY 2024–25.
New Regime Tax Slabs for FY 2024–25 (AY 2025–26)
The new regime, introduced under Section 115BAC, follows a streamlined slab system. The Finance Act 2023 updated this further by raising the zero-tax threshold and enhancing rebate provisions.
Here's a quick look at the latest tax slabs under the new regime:
New Income Tax Slabs (FY 2024–25)
| Annual Income | Tax Rate (New Regime) |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹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% |
These rates are exclusive of cess (4%) which applies additionally.
Section 87A Rebate: Zero Tax Up to ₹7 Lakh Income
Under the new regime, individuals with taxable income up to ₹7,00,000 are not required to pay any tax. This is made possible by the rebate under Section 87A, which offers up to ₹25,000 rebate for eligible taxpayers.
Who Can Claim This Rebate?
- Resident individuals only
- Total taxable income must not exceed ₹7 lakh
- Rebate is automatically calculated via official portals and tools
For an official reference, you may review the Section 87A notification from the Income Tax Department.
What Makes the New Regime Tax Calculator Essential?
The New Regime Tax Calculator is not just a basic tool—it’s a decision-making aid for anyone filing income tax under the revised regime. The calculator uses your gross income and automatically applies the new slab rates, rebate provisions, and standard deduction (₹50,000), if applicable.
Here's why it’s critical in FY 2024–25:
- Helps understand net tax liability instantly
- Avoids wrong declarations to employers
- Saves time compared to manual calculation or Form 16 estimates
- Ideal for salaried individuals, consultants, and pensioners
You can use the official tax calculator on the Income Tax portal or trusted tools like the free one available at HR Calcy which simplifies it even further.
Old vs New Regime: Which One Works Better in FY 2024–25?
Deciding between the old and new tax regimes is no longer a once-in-a-career decision—it’s an annual choice that can significantly affect your take-home salary. With employers defaulting to the new regime and TDS based on it unless declared otherwise, taxpayers need to evaluate both options carefully.
The New Regime Tax Calculator plays a crucial role here. It enables accurate and instant comparisons based on your income and exemptions, without relying on guesswork.
Let’s break down how both regimes impact different income groups through a few realistic scenarios.
Comparative Examples: Old Regime vs New Regime
Below is a side-by-side tax comparison for salaried individuals with various income levels:
| Income (₹) | Old Regime (With Deductions) | New Regime (No Deductions) | Difference (₹) |
|---|---|---|---|
| 7,00,000 | 0 (after 80C, 80D, HRA, etc.) | 0 (after 87A rebate) | 0 |
| 10,00,000 | 62,500 | 54,600 | 7,900 saved |
| 15,00,000 | 1,56,000 | 1,45,600 | 10,400 saved |
| 20,00,000 | 2,73,000 | 2,60,000 | 13,000 saved |
Note: These estimates assume standard deductions and basic tax-saving investments under old regime like ₹1.5L under Section 80C, ₹25,000 under 80D, and HRA.
As evident, the new regime offers competitive advantages, especially for individuals who:
- Don’t claim house rent allowance (HRA)
- Haven’t invested in ELSS, PPF, or LIC
- Don’t claim home loan interest (Section 24)
Still, those with existing deductions and exemptions often find the old regime more rewarding.
You can verify these figures using the official income tax comparison tool, which allows checking both regimes side by side.
Real-Life Calculations Using New Regime Tax Calculator
Let’s now explore practical examples using the New Regime Tax Calculator to see how it computes tax for various profiles.
Example 1: ₹6.8 Lakh Annual Income (Salaried)
- Gross Income: ₹6,80,000
- Deductions/Exemptions: Not applicable in new regime
- Standard Deduction: ₹50,000 (auto-applied)
- Taxable Income: ₹6,30,000
- Tax Before Rebate: ₹20,000
- 87A Rebate Applied: ₹20,000
- Final Tax Payable: ₹0
This scenario confirms that any income up to ₹7,00,000 becomes tax-free through the Section 87A rebate—even after standard deduction.
Example 2: ₹12 Lakh Income (Consultant)
- Gross Income: ₹12,00,000
- Standard Deduction: Not applicable (not salaried)
- Tax Calculation:
- First ₹3L – Nil
- Next ₹3L (3L–6L) – 5% = ₹15,000
- Next ₹3L (6L–9L) – 10% = ₹30,000
- Next ₹3L (9L–12L) – 15% = ₹45,000
- Total = ₹90,000 + 4% cess = ₹93,600
By using an updated and dynamic calculator, like the one on HR Calcy’s portal, users can generate these outcomes with precise breakup.
Example 3: ₹15 Lakh with Investments (Salaried Individual)
In the old regime, if a person invests ₹1.5 lakh under 80C, pays ₹25,000 health insurance under 80D, and claims ₹2 lakh home loan interest under Section 24, they end up saving around ₹30,000–₹50,000 more than the new regime.
The point here is simple: the New Regime Tax Calculator cannot be used in isolation. It should be complemented by a comparison tool for a complete tax decision.
The government has released specific forms for regime declaration (Form 10-IEA from AY 2024–25 onwards), details of which are available on the Income Tax Portal’s update page.
What Deductions and Exemptions Are Still Allowed in the New Regime?
A common misconception about the new tax regime is that no deductions or exemptions apply at all. While it’s true that popular benefits like HRA, LTA, and Section 80C investments are disallowed, a few select tax reliefs are still permitted even under the simplified system.
When using the New Regime Tax Calculator, these built-in allowances are automatically considered, offering a realistic estimate of your final tax payable.
Below is a breakdown of what continues to be allowed under the new tax regime for FY 2024–25:
Allowed Deductions Under the New Tax Regime
| Component | Limit/Condition |
|---|---|
| Standard Deduction (Salaried/Pension) | ₹50,000 |
| Employer’s NPS Contribution | Up to 10% of salary (Section 80CCD(2)) |
| EPF Interest | Tax-free up to ₹2.5 lakh/year contribution |
| Gratuity | Tax-free up to ₹20 lakh (on retirement) |
| Leave Encashment | Tax-free up to ₹3 lakh |
| Transport Allowance (for disabled) | ₹3,200 per month |
The standard deduction is particularly important and often overlooked. Salaried and pensioned individuals automatically receive this ₹50,000 relief even under the new system, helping reduce taxable income directly. This is reflected in any valid Form 16 issued by employers.
Deductions and Exemptions Not Allowed
It’s equally critical to understand what is not permitted. If you rely on any of these to reduce your taxes, it’s advisable to reconsider switching regimes.
- House Rent Allowance (HRA)
- Leave Travel Allowance (LTA)
- Section 80C (LIC, PPF, ELSS, etc.)
- Section 80D (Medical insurance)
- Home loan interest (Section 24)
- Education loan interest (Section 80E)
The New Regime Tax Calculator omits these entirely from its computation to offer an accurate projection based on current laws.
For those using salary restructuring tools, knowing these restrictions is important while designing compensation. The EPFO guidelines and updated payroll rules help HRs align benefits accordingly.
How Employers Handle New Regime for Salaried Employees
Since April 1, 2023, the new tax regime has become the default tax calculation mode for salaried employees. However, it’s not mandatory. Employees can still choose the old regime, but must declare their intent early in the financial year—usually via email or HRMS portal.
Here’s how the process works in most companies:
- By default, TDS is deducted based on new regime slabs.
- Declaration form is collected before April payroll cycle.
- If no declaration is given, new regime is assumed.
- The choice can be changed while filing the ITR, regardless of employer declaration.
This flexibility is beneficial, but employees must use the New Regime Tax Calculator and compare it with their deductions under the old regime to avoid overpayment or tax refund delays.
Practical Tip:
Once you declare a regime to your employer, it stays fixed for that financial year in terms of payroll TDS. However, the Income Tax Department still allows switching while filing your return. So even if your salary is deducted based on the new regime, you can claim your deductions and shift back to old while filing ITR using Form 10-IEA.
This makes pre-calculation using a reliable tool absolutely essential. It avoids confusion and ensures you stay compliant while maximizing your in-hand income.
Common Mistakes to Avoid While Using the New Regime in FY 2024–25
While the New Regime Tax Calculator simplifies tax estimation, incorrect assumptions and outdated understanding can still lead to major errors. These mistakes may result in overpaying taxes, missing rebates, or triggering scrutiny from the Income Tax Department.
Let’s look at the most frequent missteps taxpayers make and how to avoid them effectively.
Mistake 1: Assuming All Deductions Are Still Applicable
Many taxpayers wrongly believe they can continue claiming deductions like HRA, 80C, or home loan interest under the new regime. This is not true. As discussed earlier, most exemptions and deductions are disallowed, with a few exceptions such as standard deduction and employer NPS contributions.
Relying on old regime habits can inflate your expectations and lead to incorrect tax calculations. It’s important to review the Income Tax Rules 2024–25 thoroughly or consult your Form 16 issued under the current regime format.
Mistake 2: Not Considering the ₹7 Lakh Rebate Cut-off
One of the major advantages under the new regime is the zero tax benefit up to ₹7 lakh due to the Section 87A rebate. However, if your income slightly exceeds this threshold, the rebate is not applied, and your tax jumps significantly.
Example:
- Income = ₹7,00,000 → Final tax = ₹0
- Income = ₹7,01,000 → Tax on ₹1,000 = Full slab rate applies (no rebate)
It is advisable to plan investments or claim employer contributions (e.g., NPS) smartly so that your net taxable income stays within the limit, wherever possible. A small adjustment can save you ₹25,000 or more. This scenario is automatically flagged in most reliable New Regime Tax Calculator tools.
Mistake 3: Switching Regimes Without Proper Comparison
With the option to choose between old and new regimes every year, many individuals make the switch based on peer advice or assumption rather than data. But choosing the wrong regime can cost thousands in excess tax.
Before submitting your declaration to the employer or filing ITR, it is essential to calculate tax under both systems using credible platforms such as the Government’s Income Tax Comparison Tool or HR Calcy’s Comparison Calculator which gives a side-by-side breakup.
Mistake 4: Not Declaring the Preferred Regime on Time
If no declaration is submitted to the employer at the start of the financial year, the company assumes the new regime by default. While this helps with auto-calculated TDS, it may cause mismatches if you later file under the old regime without aligning TDS accordingly.
This often leads to:
- Tax mismatch notices
- Refund delays
- Incorrect 26AS or AIS entries
Employees must ensure they declare their chosen regime—preferably in April or May—to avoid mid-year confusion. Employers usually collect this through digital declaration forms in HRMS, or by physical forms if needed.
Mistake 5: Ignoring the Impact on Advance Tax and TDS
Freelancers, consultants, and business professionals who fall under advance tax obligations often calculate their dues based on old regime assumptions. When using the New Regime Tax Calculator, it is important to note:
- Advance tax due dates remain unchanged
- Slab applicability varies between regimes
- Misclassification may lead to interest under Sections 234B and 234C
Accurate quarterly projections using updated slab logic are crucial to avoid penalty interest or scrutiny during filing.
For advance tax payment schedules and guidance, you can refer to the Taxpayer Services Portal which offers step-by-step filing processes.
By proactively addressing these common errors, you safeguard not only your money but also your compliance status. The New Regime Tax Calculator becomes a reliable companion in this journey—only if used with informed understanding.
New Regime Tax Calculator: Answers to What Everyone’s Asking
With the new tax regime now the default system, and declaration windows opening in early financial quarters, a surge of questions from salaried professionals, freelancers, and retirees has emerged. Below are some of the most frequently asked questions related to the New Regime Tax Calculator, based on current government notifications, user queries, and expert clarifications.
What is the new tax regime slab for FY 2024–25?
The revised tax slab under the new regime is applicable from April 1, 2024 for individual taxpayers opting for Section 115BAC. It continues from Budget 2023 with the following structure:
| Income Range (₹) | Tax Rate |
|---|---|
| 0 – 3,00,000 | Nil |
| 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% |
The rates apply after ₹50,000 standard deduction for salaried and pensioned taxpayers. You can cross-check these slabs on the Government of India Income Tax Slab section.
Is ₹7 lakh income completely tax-free under the new regime?
Yes, up to ₹7,00,000 of taxable income is effectively tax-free due to the Section 87A rebate, provided you are a resident individual. This applies after standard deduction, which means gross income can go up to ₹7.5 lakh for salaried individuals and still result in zero tax payable.
But beware—once your taxable income exceeds ₹7,00,000 even by a small margin, the entire rebate is lost. Hence, the calculator should be used to precisely adjust salary components, NPS contributions, or other eligible elements.
Can I still switch back to the old tax regime while filing ITR?
Yes, if you are a salaried or pensioned individual (not running a business), you can switch between the old and new regimes every financial year. Even if your employer deducts TDS under the new regime, you can opt for the old one at the time of filing the return using Form 10-IEA. This option must be exercised within the deadline for filing the return under Section 139(1).
Official guidance on this provision is available via the CBDT Circular Archive, which includes clarifications issued in 2023 and 2024.
Can I claim 80C, 80D, or HRA in the new regime?
No, you cannot claim any of the traditional deductions under Sections 80C, 80D, or HRA when opting for the new tax regime. These are explicitly disallowed. The New Regime Tax Calculator auto-excludes these values, which often surprises users used to planning their finances around them.
The only deductions currently permitted are:
- Standard deduction (₹50,000 for salaried/pensioners)
- Employer contribution to NPS under Section 80CCD(2)
- Gratuity, EPF interest (up to limits), and leave encashment (on retirement)
Do I need to file separate documents to use the new regime?
For salaried individuals, no separate filing is needed unless you want to opt for the old regime instead of the new one. If you're self-employed or running a business, you must file Form 10-IEA if you're choosing the new regime for the first time, or want to switch back to old after opting in.
You can access and download these forms from the Income Tax e-Filing Utility directly.
Is there a limit to how many times I can switch regimes?
- Salaried/Pensioners: Can switch between old and new regimes every year.
- Business/Professionals: Can switch only once. Once new regime is opted and reverted, the old regime becomes permanent for future years.
The New Regime Tax Calculator should be used before each decision, especially for professionals, because a one-time switch is irreversible in business cases.
These frequently asked questions aim to clear the confusion surrounding the regime selection, calculator logic, and procedural aspects. However, since tax rules evolve with each Budget, it’s wise to verify details using up-to-date portals or consult a qualified tax planner before final submission.
Choosing Between the Old and New Tax Regimes — Key Takeaways
As taxpayers move closer to filing deadlines or annual tax planning exercises, the most common question remains — which tax regime is better? The choice between the old and new regime depends on several personal factors, including the income level, nature of income, investment habits, and available deductions.
Here is a brief comparative outlook to help understand who may benefit more under each regime:
| Criteria | Old Tax Regime | New Tax Regime |
|---|---|---|
| Tax Slabs | Higher slabs, but with deduction benefits | Lower slabs, no common deductions |
| Claiming Deductions | 80C, 80D, HRA, LTA, etc. allowed | Deductions mostly disallowed |
| Suitable For | Individuals with high investments/deductions | Individuals with limited deductions |
| Standard Deduction | ₹50,000 | ₹50,000 (now available under both from FY 24-25) |
| Ease of Filing | More documentation needed | Simpler, faster filing |
| Tax Rebate u/s 87A | Up to ₹12,500 (up to income of ₹5L) | Up to ₹25,000 (up to income of ₹7L) |
For a clearer perspective, individuals can test both options using a dependable New Regime Tax Calculator. It enables personalized comparisons and gives an accurate tax outflow under each slab.
Final Thoughts — Making an Informed Tax Choice
The Government of India continues to nudge taxpayers toward the new regime by simplifying its structure and offering slightly better rebate thresholds. However, not everyone fits neatly into this one-size-fits-all model. If you’re someone with multiple investments, housing loans, or insurance commitments, the old regime may still work to your advantage.
Meanwhile, salaried individuals with minimal deductions and a desire for cleaner compliance often find the new regime more rewarding.
Before locking in your choice each year, ensure you:
- Compute your tax under both regimes.
- Account for deductions you genuinely claim.
- Consider changes in income or employment.
- Use the Income Tax Department's official calculator to cross-verify.
Ultimately, whether you're a salaried employee, freelancer, or a business owner, tax planning must be guided by data, not assumptions. The New Regime Tax Calculator offers a practical tool to get you started with that clarity.
Disclaimer: Tax rules are subject to periodic amendments. Always refer to the official Income Tax India portal or consult a qualified tax advisor before making final declarations.
FAQ
What is the New Regime Tax Calculator?
The New Regime Tax Calculator helps individuals estimate their income tax based on the latest tax slabs under the new tax regime.
How is the new tax regime different from the old one?
The new tax regime offers lower tax rates but fewer exemptions, while the old regime allows deductions like HRA, 80C, and others.
Is the New Regime Tax Calculator free to use?
Yes, most calculators including the one on HR Calcy are completely free to use with no signup required.
Can I switch between the old and new tax regimes every year?
Salaried individuals can switch every year. Business owners can switch only once and must continue with that regime afterward.
What income sources are considered in the new tax regime?
All income including salary, rental income, and other sources (excluding agriculture) are considered in the new regime.
Are deductions like 80C and HRA allowed in the new regime?
No, most common deductions such as 80C, HRA, LTA, and standard deduction (except ₹50,000) are not allowed under the new tax regime.
Is the new tax regime better for all taxpayers?
Not always. If you claim many deductions, the old regime might save more tax. The new regime is simpler and better for those with fewer deductions.
Where can I calculate tax using the new regime online?
You can use the official Income Tax Department Calculator or HR Calcy's free tool.
Is the new tax regime mandatory in FY 2024-25?
No, it’s the default option but not mandatory. You can still opt for the old regime if you prefer claiming deductions.
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