Old vs New Tax Regime
Enter your income once, see tax under both regimes with a clear verdict on which saves you more.
Old Regime Deductions
Old Regime
New Regime
When is New Regime Better?
The new regime is generally better if you don't have significant deductions under Section 80C, 80D, HRA, or other exemptions. With the ₹75,000 standard deduction and rebate up to ₹12L taxable income, most salaried employees with income up to ₹12L pay zero tax under the new regime.
When is Old Regime Better?
The old regime is better if your total deductions (80C + 80D + HRA + other) exceed approximately ₹3.75L. This typically benefits people with home loans (Section 24b), high HRA in metro cities, or significant insurance premiums.
FAQ: Can I switch between regimes every year?
Yes, salaried employees can switch between old and new regime every financial year. Self-employed individuals can switch only once.