What are the new tax regime slabs for FY 2024-25?

Up to ₹3L: Nil; ₹3-7L: 5%; ₹7-10L: 10%; ₹10-12L: 15%; ₹12-15L: 20%; Above ₹15L: 30%. Standard deduction of ₹75,000 applies under the new regime.

Is new tax regime better than old?

New regime is better for those with fewer deductions. Old regime is better if you have significant 80C investments, HRA, and home loan benefits.

What deductions are available under the old regime?

80C (₹1.5L): ELSS, PPF, EPF, LIC. 80D: Health insurance. 24(b): Home loan interest. HRA exemption. Standard deduction ₹50,000.

What is the income tax rebate under Section 87A?

Old regime: If taxable income ≤ ₹5L, full tax rebate applies (tax = 0). New regime: If taxable income ≤ ₹7L, full tax rebate applies.

How is TDS calculated on salary?

Employer estimates annual tax liability and deducts 1/12th each month. You must submit investment declarations to avoid excess TDS.

What is the difference between tax exemption and tax deduction?

Exemption reduces the taxable income directly (like HRA). Deduction reduces taxable income after adding back (like 80C). Both reduce tax but are applied differently.

Income Tax Calculator India 2024-25

Calculate your income tax liability under Old Regime and New Regime for FY 2024-25. Compare both and choose the better option.

Enter Your Income Details

Annual Gross Income

₹

Deductions under 80C (Max ₹1.5L)

₹

HRA Exemption

₹

Other Deductions (80D, 80E, etc.)

₹

Tax Regime

Old Regime

Taxable Income

₹0

Total Tax Payable

₹0

Effective Tax Rate

0.00%

Monthly TDS

₹0

New Regime

Taxable Income

₹0

Total Tax Payable

₹0

Effective Tax Rate

0.00%

Monthly TDS

₹0

Tax Comparison Chart

Old Regime vs New Regime — Which Should You Choose?

The key question is: how many deductions can you claim?

Old Regime: Benefits those who invest in 80C (PPF, ELSS, LIC), pay rent (HRA), have home loans, and health insurance. Standard deduction of ₹50,000 applies.
New Regime (FY 2024-25): Lower slab rates, higher standard deduction of ₹75,000, but no 80C/HRA/other deductions. Ideal for those without structured investments.

A simple rule: If your total deductions exceed ₹3.75 lakh, the Old Regime is likely better. Otherwise, go for the New Regime. Use this calculator to find your exact break-even.

⚠️ Disclaimer: This calculator provides estimates for educational purposes only. Tax laws change frequently. Consult a Chartered Accountant (CA) for professional tax advice before filing your returns.

Explore more financial tools: SIP Calculator | FD Calculator | EMI Calculator

Frequently Asked Questions

Up to ₹3L: Nil; ₹3–7L: 5%; ₹7–10L: 10%; ₹10–12L: 15%; ₹12–15L: 20%; Above ₹15L: 30%. A standard deduction of ₹75,000 applies. Rebate u/s 87A makes income up to ₹7L effectively tax-free.

New regime is better for salaried individuals with fewer deductions or younger earners just starting out. Old regime is better if you have significant 80C investments, HRA benefits, and home loan interest deductions totalling over ₹3.75L.

Section 80C (up to ₹1.5L): ELSS, PPF, EPF, LIC premiums, ELSS funds. Section 80D: Health insurance premiums. Section 24(b): Home loan interest. HRA exemption for rent paid. Standard deduction of ₹50,000.

Under the old regime: If your taxable income is ₹5 lakh or less, you get a full rebate and pay zero tax. Under the new regime: The rebate limit is higher at ₹7 lakh taxable income, making the new regime very attractive for middle-income earners.

Your employer estimates your annual tax liability at the start of the financial year based on your declared investments and deductions. This total is divided by 12 and deducted each month as TDS. Submit Form 12BB to declare investments and reduce TDS.

A tax exemption directly reduces the amount that is included in your taxable income (e.g., HRA exemption reduces gross salary). A tax deduction is subtracted from your gross income after it's been included (e.g., Section 80C). Both lower your final tax, but they work at different stages of the calculation.