Which tax regime is better — old or new?

The new regime has lower rates but fewer deductions. The old regime is better if you claim significant deductions (HRA, 80C, 80D). Use this calculator to compare both.

What is the basic exemption limit?

Under the new regime, income up to ₹3 lakh is exempt. Under the old regime, it is ₹2.5 lakh (₹3 lakh for senior citizens).

Is standard deduction available in new regime?

Yes. A standard deduction of ₹75,000 is available for salaried individuals under the new tax regime from FY 2024-25.

Calculator

Income Tax Calculator

Calculate your income tax liability under both Old and New Tax Regime for FY 2025-26 and choose the better option.

Annual Income (CTC)

₹

₹0₹50L

Section 80C Deductions

₹

₹0₹1.5L

HRA + Other Deductions

₹

₹0₹5L

Old Regime

₹1,09,200

Effective: 9.1%

New Regime

₹83,200

Effective: 6.9%

✓ Better

New Regime Tax Slabs (FY 2025-26)

Income Range	Rate
Up to ₹4,00,000	Nil
₹4,00,001 – ₹8,00,000	5%
₹8,00,001 – ₹12,00,000	10%
₹12,00,001 – ₹16,00,000	15%
₹16,00,001 – ₹20,00,000	20%
₹20,00,001 – ₹24,00,000	25%
Above ₹24,00,000	30%

Old vs New Tax Regime

The New Regime offers lower slab rates but no deductions. The Old Regime allows deductions under 80C, 80D, HRA, LTA etc. Generally: if your total deductions exceed ₹3.75 lakh, Old Regime saves more tax. Otherwise New Regime is better.

Standard Deduction: ₹75,000 (New Regime) | ₹50,000 (Old Regime)
A rebate of ₹60,000 applies under New Regime for income up to ₹12,00,000 (zero tax).