What is New vs Old Tax Regime Comparison?
Compare old and new tax regime side-by-side and find which saves more tax for your specific income and deductions Simply enter your values, and the calculator instantly computes accurate results using standard financial formulas. All calculations are performed entirely in your browser — nothing is stored or transmitted.
Formula Used
Old regime allows 80C, HRA, home loan interest, 80D, LTA, and many other deductions. New regime has simpler slabs and lower rates but allows only ₹75,000 standard deduction and employer NPS.
How to Use This Calculator
- Enter your total gross income
- Enter all deductions: 80C, HRA, home loan interest (Sec 24), 80D, NPS, etc.
- The calculator computes tax under both regimes simultaneously
- See which regime saves more and by how much
- Use the breakeven deduction amount to decide which regime fits your profile
Worked Example
Income: ₹15L | Old regime deductions: ₹4.5L (80C+HRA+80D) | Old Tax: ₹1,06,600 | New Tax: ₹1,17,000 | Old regime saves ₹10,400 — choose old
Why Use This Tool?
- Instant side-by-side comparison without manual tax calculation
- Find the deduction threshold where old regime becomes better
- Accounts for all major deductions including home loan interest
- Updated for FY 2024-25 tax slabs and standard deduction
Frequently Asked Questions
Which tax regime is better for salaried employees?
New regime is better if your deductions are below ₹3.75 lakh. Old regime is better if you have HRA + 80C + home loan interest + 80D adding up to more than ₹3.75 lakh. The breakeven point varies by income slab. Use this calculator for your specific numbers.
Can I switch between old and new tax regime every year?
Salaried employees and pensioners can switch every year when filing their ITR. Business owners and self-employed professionals can switch from new to old only once — after switching to old regime, they cannot switch back to new regime.
What deductions are allowed in the new tax regime?
New regime allows: ₹75,000 standard deduction (salaried), employer NPS contribution (Sec 80CCD(2)), gratuity exemption, leave encashment exemption, and a few others. Notably NOT allowed: 80C, HRA, home loan interest (Sec 24), 80D, LTA.
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