Income Tax Calculator

Old vs. New Tax Regime Calculator (FY 2024-25)

Compare your income tax liability under the Budget 2024 New Regime (Section 115BAC) versus the Old Regime. Identify your exact tax savings and the crossover deduction threshold.

Presets:

Income & Taxpayer Classification

Gross Annual Income / CTC (₹)

Taxpayer Category

Age Category

Eligible Deductions & Exemptions (Old Regime)

Section 80C (EPF, PPF, ELSS, LIC, etc.)

Statutory cap: ₹1,50,000

Section 80D (Health Insurance Premium)

Section 80CCD(1B) (Additional NPS Self)

Statutory cap: ₹50,000

Section 24(b) (Home Loan Interest - Self Occupied)

Statutory cap: ₹2,00,000

HRA Exemption (Section 10(13A))

Other Deductions (80E, 80G, 80TTA, etc.)

Universal Deductions (Old & New Regime)

Employer NPS Contribution (Section 80CCD(2))

Deductible in BOTH Old and New Regimes (up to 14% of Basic + DA).

Regime RecommendationEstimated Tax Savings: ₹40,300.00

New Tax Regime Saves You Money

You pay ₹71,500.00 under the New Tax Regime versus ₹1,11,800.00 under the Old Regime. Switching to the New Regime saves you ₹40,300.00 annually.

Old Regime Breakeven Deduction Point:₹3,68,748.00

You need at least this amount in Old-Regime deductions to beat the New Regime.

Regime Tax Comparison

Tax Component	New Regime (Budget 2024)	Old Regime
Gross Annual Income	₹12,00,000.00	₹12,00,000.00
Standard Deduction	-₹75,000.00	-₹50,000.00
Chapter VI-A & Other Deductions	-₹0.00	-₹1,75,000.00
Net Taxable Income	₹11,25,000.00	₹9,75,000.00
Income Tax as per Slabs	₹68,750.00	₹1,07,500.00
Health & Education Cess (4%)	₹2,750.00	₹4,300.00
Total Annual Tax Liability	₹71,500.00	₹1,11,800.00
Monthly Tax / TDS Impact	₹5,958.00/mo	₹9,317.00/mo
Effective Tax Rate	5.96%	9.32%

Formula and assumptions

New Regime tax is calculated using revised Budget 2024 slabs with ₹75,000 standard deduction and Section 87A rebate up to ₹7 Lakhs. Old Regime tax applies age-based slabs after ₹50,000 standard deduction and allowable Chapter VI-A deductions. Cess is 4% on tax and surcharge.

New Tax Regime reflects revised slabs and enhanced ₹75,000 standard deduction under the Finance (No. 2) Act, 2024 (Budget 2024) applicable for FY 2024-25 (AY 2025-26) onwards.
Section 87A rebate under the New Regime provides full tax relief up to ₹7,00,000 taxable income (with marginal relief for income marginally exceeding ₹7,00,000).
Old Tax Regime standard deduction for salaried individuals remains ₹50,000, with Section 87A rebate up to ₹5,00,000 taxable income.
Health and Education Cess is computed at 4% on the aggregate of income tax and applicable surcharge under both regimes.
Employer contribution to NPS under Section 80CCD(2) is tax-deductible under both Old and New Regimes (capped up to 14% of salary under Budget 2024).
Monetary values are rounded to nearest whole rupee per standard Income Tax Department Section 288B rules.

Formula version 1.0. Reviewed against Finance (No. 2) Act 2024 (Budget 2024), 7 November 2026.

How it works

The New Tax Regime (Section 115BAC) is the default tax regime under the Finance (No. 2) Act, 2024. For salaried individuals, it provides an enhanced standard deduction of ₹75,000 and restructured tax slabs (3L–7L at 5%, 7L–10L at 10%, 10L–12L at 15%, 12L–15L at 20%, and above 15L at 30%), with full Section 87A rebate up to ₹7,00,000 taxable income (effective zero tax up to ₹7,75,000 gross salary). The Old Regime retains all Chapter VI-A deductions (80C, 80D, Section 24b home loan interest, HRA, 80CCD(1B)) with standard deduction of ₹50,000 and 87A rebate up to ₹5,00,000. This tool models both regimes side-by-side with 4% Health & Education Cess, marginal relief, and computes the exact crossover breakeven deduction point.

Example

A salaried employee with ₹15,00,000 annual gross salary and ₹1,50,000 in Section 80C deductions pays ₹1,30,000 under the New Regime versus ₹2,00,200 under the Old Regime, saving ₹70,200 under the New Regime. However, if the same taxpayer also claims ₹2,00,000 in Home Loan interest (Section 24b) and ₹50,000 in Health Insurance (Section 80D), total deductions rise to ₹4,00,000, bringing Old Regime tax down to ₹1,22,200 (making the Old Regime ₹7,800 cheaper). The exact crossover deduction threshold for ₹15 Lakh gross salary is approximately ₹3,75,000.

Frequently asked questions

What is the standard deduction for FY 2024-25 under the New Tax Regime?

In the Union Budget 2024 (Finance (No. 2) Act, 2024), the standard deduction for salaried individuals and pensioners under the New Tax Regime was increased from ₹50,000 to ₹75,000. Under the Old Regime, it remains ₹50,000.

At what salary is income tax zero under the New Regime?

Under the New Regime for FY 2024-25, a salaried employee earning up to ₹7,75,000 pays zero tax. The ₹75,000 standard deduction reduces taxable income to ₹7,00,000, and Section 87A provides a full tax rebate on taxable income up to ₹7,00,000.

Can I claim Employer NPS under both regimes?

Yes. Employer contribution to NPS under Section 80CCD(2) (up to 14% of Basic + DA under Budget 2024) is eligible for tax deduction under BOTH the Old and New Tax Regimes.

What is the crossover / breakeven deduction point?

The crossover point is the minimum total deduction amount you must claim under the Old Regime to pay equal or lower tax than the New Regime. If your actual eligible deductions exceed this threshold, the Old Regime saves you money; otherwise, the New Regime is more beneficial.

Can taxpayers switch between Old and New regimes every year?

Salaried individuals with no business or professional income can switch between Old and New regimes each financial year when filing their ITR. Individuals with business or professional income can opt out of the New Regime only once in a lifetime.

Which deductions are disallowed in the New Tax Regime?

Deductions disallowed under the New Regime include Section 80C (PPF, EPF, ELSS, LIC, tuition fees), Section 80D (health insurance), Section 24(b) (home loan interest on self-occupied house), Section 10(13A) (HRA), Section 10(5) (LTA), and Section 80TTA (savings interest).