New vs Old Tax Regime: Complete Comparison
Since FY 2023-24, the new tax regime is the default option. But is it right for everyone? Let's break it down.
Tax Slabs Comparison (FY 2024-25)
New Regime
- Up to ₹3 lakh — Nil
- ₹3-7 lakh — 5%
- ₹7-10 lakh — 10%
- ₹10-12 lakh — 15%
- ₹12-15 lakh — 20%
- Above ₹15 lakh — 30%
Old Regime
- Up to ₹2.5 lakh — Nil
- ₹2.5-5 lakh — 5%
- ₹5-10 lakh — 20%
- Above ₹10 lakh — 30%
When to Choose Old Regime
The old regime is better if your total deductions exceed approximately ₹3.75 lakhs:
- ₹1.5 lakh under 80C
- ₹50,000 NPS under 80CCD(1B)
- ₹25,000+ health insurance under 80D
- Home loan interest under Section 24
- HRA exemption
When to Choose New Regime
- You have minimal investments/deductions
- You prefer simplicity in tax planning
- Your income is below ₹7 lakh (full rebate available)
- You don't have a home loan or HRA
Not sure which regime suits you? Get a personalized analysis from Ritik Jindal & Associates. Contact us today!