Income Tax Calculator — Compare Old vs New Tax Regime

The New Tax Regime is the default tax regime for Indian taxpayers. However, individuals can choose to switch to the Old Tax Regime at the time of filing their Income Tax Return (ITR).

Under Budget 2024/2025 updates, salaried employees enjoy a standard deduction of ₹75,000 under the New Tax Regime (compared to ₹50,000 under the Old Tax Regime).

With the Section 87A tax rebate and ₹75,000 standard deduction, salaried individuals earning up to ₹7,75,000 pay zero income tax under the New Tax Regime.

If you have total deductions (Section 80C, 80D, HRA, Home Loan Interest) exceeding ₹3,75,000 to ₹4,00,000, the Old Tax Regime is usually more beneficial. If you have minimal deductions, the New Tax Regime offers lower tax rates.

Salaried individuals without business/professional income can switch between the Old and New Tax Regimes every financial year. Individuals with business income can opt out of the New Tax Regime only once in their lifetime.