Old vs New Tax Regime Calculator (India)

It depends entirely on how many deductions you claim. The New regime is the default and has lower slab rates but almost no deductions; the Old regime has higher rates but lets you claim 80C, 80D, NPS, HRA and home-loan interest. If you claim few deductions, the New regime is almost always cheaper. If you have a home loan, pay significant rent (HRA), and max out 80C/80D/NPS, the Old regime can win. This calculator runs both on your numbers and tells you the cheaper one plus the break-even deduction level.

Yes. Since AY 2024-25 the New regime under Section 115BAC is the default. If you do nothing, you're taxed under the New regime. Salaried individuals with non-business income can switch between the Old and New regimes every financial year when filing, so you can re-evaluate annually as your investments, rent, or loan change. Taxpayers with business income get only a one-time switch back via Form 10-IEA.

The Old regime allows Section 80C (up to ₹1.5 lakh: EPF, PPF, ELSS, life insurance, home-loan principal), Section 80D (health insurance), Section 80CCD(1B) (an extra ₹50,000 for NPS), House Rent Allowance (HRA) exemption, and home-loan interest under Section 24(b). The New regime allows almost none of these — its main relief is a higher ₹75,000 standard deduction and the Section 87A rebate that makes income up to ₹12 lakh effectively tax-free.

Because the New regime's Section 87A rebate makes taxable income up to ₹12 lakh pay zero tax, most salaried people earning up to around ₹12–13 lakh are better off under the New regime regardless of deductions. Above that, it comes down to your deduction total — the calculator shows the exact break-even for your salary, i.e. how much you'd need to deduct before the Old regime becomes worthwhile.