1. Tax Slabs Comparison (FY 2024-25)
Table Format
| Income Range (₹) | Old Regime Tax Rate | New Regime Tax Rate (Default) |
|---|---|---|
| Up to ₹3,00,000 | 0% | 0% |
| ₹3,00,001 – ₹5,00,000 | 5% | 5% |
| ₹5,00,001 – ₹6,00,000 | 20% | 5% |
| ₹6,00,001 – ₹7,50,000 | 20% | 10% |
| ₹7,50,001 – ₹9,00,000 | 20% | 10% |
| ₹9,00,001 – ₹10,00,000 | 30% | 15% |
| ₹10,00,001 – ₹12,00,000 | 30% | 15% |
| ₹12,00,001 – ₹12,50,000 | 30% | 20% |
| ₹12,50,001 – ₹15,00,000 | 30% | 20% |
| Above ₹15,00,000 | 30% | 30% |
Key Notes:
- New Regime has lower tax rates but removes most deductions (80C, 80D, HRA, etc.).
- Old Regime allows deductions but has higher tax rates for incomes above ₹5L.
2. Deductions & Exemptions Comparison
| Feature | Old Regime | New Regime (Default) |
|---|---|---|
| Standard Deduction (Salaried) | ₹50,000 | ✅ ₹75,000 |
| Section 80C (PPF, LIC, etc.) | ✅ Up to ₹1.5L | ❌ Not allowed |
| Section 80D (Health Insurance) | ✅ Up to ₹25K-₹75K | ❌ Not allowed |
| HRA Exemption | ✅ Allowed | ❌ Not allowed |
| LTA (Leave Travel Allowance) | ✅ Allowed | ❌ Not allowed |
| Home Loan Interest (Sec 24) | ✅ Up to ₹2L | ❌ Not allowed |
| Education Loan Interest (80E) | ✅ Allowed | ❌ Not allowed |
| NPS (80CCD) | ✅ Additional ₹50K | ❌ Not allowed |
3. Which Regime is Better? (Chart Format)
Tax Liability Comparison (Graphical Representation)
(Assuming ₹50K standard deduction, no HRA, and ₹1.5L 80C investment)
| Annual Income (₹) | Old Regime Tax | New Regime Tax | Better Option |
|---|---|---|---|
| ₹5,00,000 | ₹12,500 | ₹12,500 | Equal |
| ₹7,50,000 | ₹52,500 | ₹37,500 | New Regime |
| ₹10,00,000 | ₹1,12,500 | ₹75,000 | New Regime |
| ₹12,50,000 | ₹1,87,500 | ₹1,25,000 | New Regime |
| ₹15,00,000 | ₹2,62,500 | ₹1,87,500 | New Regime |
| ₹20,00,000 | ₹4,12,500 | ₹3,37,500 | New Regime |
Break-Even Analysis
- New Regime is better if your total deductions (80C, 80D, HRA, etc.) are below ₹3.5L–₹4L.
- Old Regime is better for high deductions (home loan, NPS, etc.).
4. Quick Decision Guide
Choose New Regime If:
✔ Your total deductions < ₹3.5L
✔ You don’t have HRA/home loan benefits
✔ Your income is ₹7.5L–₹15L
Choose Old Regime If:
✔ You have HRA, home loan, or NPS deductions
✔ Your deductions exceed ₹3.5L–₹4L
✔ You’re a senior citizen (higher 80D limits)
Takeaway:
- New Regime saves tax for most salaried employees with minimal investments.
- Old Regime benefits those with high savings (80C, 80D, home loan, etc.).
Final Tips
- Salaried employees with ₹7.5L–₹15L income: New Regime is usually better.
- Business owners/freelancers: Compare both regimes using a tax calculator.
- Switch between regimes: Allowed yearly (but not for business income in ITR-4).
