Old vs New Tax Regime Calculator
Deciding between the Old and New Tax Regime depends on your total income and the amount of deductions (like 80C, 80D, HRA) you can claim. Use this side-by-side comparison tool to find the lowest tax liability for FY 2024-25.
⚡ Quick Choice Rule
For most salaried individuals, the New Regime is better if total deductions are less than ₹3.75 Lakhs (at ₹15L income). The Old Regime wins if you have high HRA and 80C investments.
New Regime (FY 24-25) includes a standard deduction of ₹75,000 and zero tax up to ₹7 Lakhs taxable income.
Key Changes in New Tax Regime (FY 2024-25)
The New Tax Regime has been made the default option since last year. For FY 2024-25, the government has introduced several benefits to make it more attractive:
- Increased Standard Deduction: Raised to ₹75,000 for salaried employees and pensioners.
- Zero Tax Limit: No tax is payable if your taxable income is up to ₹7,00,000 due to Section 87A rebate.
- Revised Slabs: The tax slabs have been widened to reduce the tax burden on middle-income earners.
- Simplified Compliance: No need to track investments or collect rent receipts for HRA.
When should you stick to the Old Regime?
The Old Regime remains beneficial if you maximize your tax-saving investments. You should consider the Old Regime if you can claim:
- Section 80C: Up to ₹1.5 Lakhs (PPF, LIC, ELSS, EPF).
- Section 80D: Health insurance premiums for self and parents.
- Section 24(b): Home loan interest up to ₹2 Lakhs.
- HRA: Significant House Rent Allowance if you live in a rented property.
Privacy and Financial Data
Comparing tax regimes requires entering your annual income and personal investment details. Most tax sites store this data to sell you financial products. OrangeTool is different. Our calculator runs entirely on your device using JavaScript. We don't save your income, and we don't have a database. Your privacy is guaranteed.