Compare India's old and new tax regimes — tax slabs, deductions, exemptions, and which regime saves you more tax.
India's income tax system offers two regimes: the old regime (with deductions and exemptions) and the new regime (lower tax rates but no deductions). The old regime allows deductions under 80C (₹1.5L), 80D (health insurance), HRA exemption, and more. The new regime introduced in 2020 offers lower tax rates but eliminates most deductions and exemptions. The choice depends on how much you invest in tax-saving instruments.
| Feature | Tax Calculator | Salary Calculator |
|---|---|---|
| Tax Slabs (₹0-3L) | Nil | Nil |
| Tax Slabs (₹3-6L) | 5% | 5% (rebate under 87A up to ₹7L) |
| Tax Slabs (₹6-9L) | 20% | 10% |
| Tax Slabs (₹9-12L) | 20% | 15% |
| Tax Slabs (₹12-15L) | 30% | 20% |
| Tax Slabs (Above ₹15L) | 30% | 30% |
| Standard Deduction | ₹50,000 | ₹50,000 |
| Section 80C Deduction | Up to ₹1.5L | Not available |
| HRA Exemption | Available | Not available |
| Health Insurance (80D) | Up to ₹25K-50K | Not available |
| Home Loan Interest (24(b)) | Up to ₹2L | Not available |
Ready to calculate? Try these tools to see the numbers for your situation.
If you claim deductions of ₹2.5L or more (80C, HRA, 80D, home loan), the old regime likely saves more tax. If you claim fewer deductions, the new regime may be better.
Salaried individuals can switch between regimes each year when filing returns. Business owners must choose one regime and cannot switch annually.
Yes, under Section 87A rebate in the new regime, no tax is payable if taxable income is up to ₹7 lakh. However, this is a rebate, not an exemption.
The new regime is the default from FY 2023-24. If you want the old regime, you must actively opt for it when filing your return.