Income Tax Calculator New vs Old (FY 2024-25)

The standard deduction for salaried individuals and pensioners under the New Tax Regime (Section 115BAC) has been increased to ₹75,000 for FY 2024-25. Under the Old Tax Regime, it remains ₹50,000.

No. The New Tax Regime does not allow standard itemized deductions such as Section 80C (PPF, ELSS, EPF, LIC), Section 80D (Health Insurance), Section 24b (Home Loan Interest for self-occupied property), or HRA exemption under Section 10(13A). In exchange, it offers substantially lower base tax slabs and a higher standard deduction.

For salaried employees, total income up to ₹7,75,000 incurs zero tax liability. This is because standard deduction of ₹75,000 brings taxable income to ₹7,00,000, which is then 100% rebated under Section 87A (maximum rebate ₹25,000).

The calculator computes your exact tax liabilities under both regimes in parallel, including 4% Health & Education cess. It then calculates the exact breakeven deduction threshold — the dollar-for-dollar level of exemptions you must claim in the Old Regime to match the New Regime.

Yes. Salaried individuals without business or professional income have the legal option to switch between the New and Old Tax Regimes every financial year at the time of filing their Income Tax Return (ITR-1 or ITR-2) under Section 139(1).