Can I switch between Old and New Tax Regime each year?

Salaried employees can switch between regimes each financial year by informing their employer. Business owners and self-employed individuals have more restricted switching rules.

Is the New Tax Regime better than the Old Regime in 2025?

The New Regime is generally better if your deductions (80C, HRA, home loan interest) are less than ₹3.75 Lakhs. If you have significant deductions, the Old Regime often saves more.

What is the Section 87A rebate?

Under the New Tax Regime, if your net taxable income is ₹7 Lakh or less, you get a full rebate under Section 87A — meaning zero income tax is payable.

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Indian Income Tax Calculator

Compare tax liabilities side-by-side between the Old and New Tax Regimes (FY 2024-25 / 2025-26).

Gross Annual Income (INR)₹12.00 Lakh

Total Deductions (Old Regime)₹2.00 Lakh

Standard 80C (Mutual funds, PPF, LIC - max 1.5L) + 80D (Health Insurance) + HRA + Home Loan Interest.

New Tax Regime

₹0

Incl. 75k std. deduction

Old Tax Regime

₹0

With declared deductions

Best Regime Recommendation

Estimated Tax Savings

₹0

by selecting the **New Tax Regime**

Tax Rules Note:

Starting Budget 2024, the standard deduction for the New Tax Regime is elevated to **₹75,000** (up from ₹50,000).

Taxpayers claiming significant HRA and home loan interests often find the **Old Regime** more beneficial, whereas salaried employees with minimal investments save more on the **New Regime**.

Complete Educational Guide

New vs Old Tax Regime: Which Saves You More in India?

Since Budget 2020, Indian taxpayers can choose between two income tax regimes annually. The New Regime offers lower slab rates but removes most deductions, while the Old Regime offers higher slabs but allows major tax-saving deductions (80C, HRA, etc.).

New Regime Tax Slabs (FY 2025-26)

₹0–3L: 0% | ₹3–7L: 5% | ₹7–10L: 10% | ₹10–12L: 15% | ₹12–15L: 20% | >₹15L: 30%

Where:

Standard Deduction: ₹75,000 available in New Regime from FY 2024-25
Section 87A Rebate: Full tax rebate up to ₹7L net taxable income in New Regime
Old Regime: 80C (₹1.5L), HRA, home loan interest (₹2L) deductions applicable
Health & Education Cess: 4% added on top of total computed tax

How to Calculate & Use this Tool:

Enter Annual CTC

Input your gross annual salary or total income before any deductions.

Add Deductions (Old Regime)

Enter 80C investments, HRA received, home loan interest, and NPS contributions.

Compare Regimes

View side-by-side tax liability for both Old and New regimes to pick the better option.

Verify Take-Home

See your effective tax rate and annual tax payable in your chosen regime.

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