Income Tax Slabs FY 2024-25: Old vs New Regime Compared

New Tax Regime (Default from FY 2023-24)

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*Standard deduction of ₹75,000 applies under the new regime from FY 2024-25.*

Tax rebate under Section 87A: Net income up to ₹7,00,000 is fully exempt from tax.

Old Tax Regime

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Benefits: standard deduction ₹50,000, plus all deductions (80C, 80D, HRA, LTA etc.)

Which Regime is Better?

Choose New Regime if:

Income is below ₹7.75 lakh (effectively zero tax after 87A rebate + ₹75K deduction)

You have limited deductions under 80C, HRA, 80D

You prefer simplicity

Choose Old Regime if:

You maximise 80C (₹1.5L), 80D (₹25K+), HRA, and home loan deduction

Total deductions exceed ~₹3.75 lakhs (break-even varies by income)

Use the New vs Old Regime Calculator to find your optimal choice.