⚖️ Enter Your Details
Taxpayer Category
Annual Gross Income
₹10,00,000
₹
Section 80C
₹1,50,000
₹
Section 80D
₹25,000
₹
HRA Exemption
₹0
₹
Other Deductions
₹0
₹
Enter your income and deductions above, then click Compare Both Regimes to see a detailed side-by-side breakdown.
Detailed Comparison
Old vs New Regime — Key Differences
| Feature | ✅ New Regime | 📋 Old Regime |
|---|---|---|
| Standard Deduction | ₹75,000 | ₹50,000 |
| Section 80C (PPF, ELSS, LIC) | Not Allowed | Up to ₹1,50,000 |
| Section 80D (Health Insurance) | Not Allowed | Up to ₹75,000 |
| HRA Exemption | Not Allowed | Actual exemption |
| Home Loan Interest (Sec 24b) | Not Allowed | Up to ₹2,00,000 |
| NPS Employer Contribution (80CCD2) | Allowed | Allowed |
| Education Loan Interest (80E) | Not Allowed | No limit |
| Donations (80G) | Not Allowed | 50–100% of donation |
| LTA Exemption | Not Allowed | Actual exemption |
| 87A Rebate (Zero Tax Limit) | Up to ₹12,00,000 taxable | Up to ₹5,00,000 taxable |
| Default Regime | Yes (from FY 2023-24) | Must opt-in explicitly |
| Annual Switch Allowed | Yes (salaried) | Yes (salaried) |
| Surcharge Cap | 25% (max) | 37% (for income > ₹5Cr) |
Decision Guide
Who Should Choose Which Regime?
✅ Choose New Regime If...
- Your total deductions are less than ₹3.75 lakh
- You are a young professional just starting investments
- You don't pay rent or stay in own house (no HRA)
- You haven't taken a home loan
- You want simpler tax filing without maintaining proofs
- Your income is below ₹12.75 lakh — zero tax under New Regime
- You have income from business or profession and want lower rates
📋 Choose Old Regime If...
- Your total deductions exceed ₹3.75 lakh
- You max out 80C (₹1.5L) + 80D (₹25K) + HRA
- You are paying home loan interest (Sec 24b up to ₹2L)
- You have education loan interest under 80E
- You make large NPS contributions under 80CCD(1B)
- You are a senior citizen with higher 80D limits
- You have significant other deductions beyond 80C
FAQs
Frequently Asked Questions
Which tax regime is better for salaried employees in FY 2025-26?
It depends on your deductions. New Regime is better if total deductions (80C + 80D + HRA + others) are less than ₹3.75 lakh. If deductions exceed ₹3.75 lakh, Old Regime typically saves more. Use our comparator above to get an exact number for your specific income.
What is the break-even deduction amount between Old and New Regime?
The break-even point varies with income. As a general rule, if your total eligible deductions exceed ₹3.75 lakh, the Old Regime becomes more beneficial. For income above ₹15 lakh, you need higher deductions (around ₹4.25–5 lakh) to make Old Regime beneficial.
Is New Tax Regime the default in FY 2025-26?
Yes. From FY 2023-24 onwards, the New Tax Regime is the default option. If you want to opt for the Old Regime, you must actively declare it — salaried employees tell their employer via Form 10-IEA, and self-employed file it with their ITR before the due date.
Can I switch regime after filing ITR?
No. Once ITR is filed for an assessment year under a chosen regime, you cannot switch for that year. However, salaried individuals without business income can choose a different regime every year while filing ITR. Business income holders can switch from New to Old only once.
What deductions are available in the New Tax Regime?
The New Regime allows very limited deductions: Standard Deduction of ₹75,000 for salaried/pensioners, Employer's NPS contribution under Section 80CCD(2), Agniveer Corpus Fund deduction, and gratuity/leave encashment exemptions. Most deductions like 80C, 80D, HRA, and home loan interest are NOT available.
How to calculate which regime saves more tax?
Use the comparator tool above — enter your annual income, 80C investments, 80D health insurance, HRA exemption and other deductions. The tool instantly calculates tax under both regimes and shows which saves more money and by exactly how much.
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