Compare Old vs New Regime | AY 2025-26
| Income Slab | Below 60 Years | 60-80 Years (Senior) | Above 80 Years (Super Senior) |
|---|---|---|---|
| Up to ₹2,50,000 | Nil | Nil | Nil |
| ₹2,50,001 – ₹3,00,000 | 5% | Nil | Nil |
| ₹3,00,001 – ₹5,00,000 | 5% | 5% | Nil |
| ₹5,00,001 – ₹10,00,000 | 20% | 20% | 20% |
| Above ₹10,00,000 | 30% | 30% | 30% |
Standard Deduction: ₹50,000 for salaried individuals under Old Regime.
| Income Slab | Tax Rate (All Ages) |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 – ₹7,00,000 | 5% |
| ₹7,00,001 – ₹10,00,000 | 10% |
| ₹10,00,001 – ₹12,00,000 | 15% |
| ₹12,00,001 – ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Standard Deduction: ₹75,000 for salaried individuals under New Regime (FY 2024-25).
| Feature | Old Regime | New Regime |
|---|---|---|
| Tax Rates | Higher rates | Lower rates |
| Section 80C (₹1.5L) | Allowed | Not Allowed |
| Section 80D (Medical) | Allowed | Not Allowed |
| HRA Exemption | Allowed | Not Allowed |
| Home Loan Interest (24b) | Up to ₹2L | Not Allowed |
| Standard Deduction | ₹50,000 | ₹75,000 |
| 87A Rebate Limit | ₹5,00,000 | ₹7,00,000 |
| Default Regime | No (opt-in) | Yes (default) |
Section 87A provides a rebate to resident individuals with lower taxable income:
This rebate is automatically applied in the calculator results above.
The Old regime allows various deductions and exemptions (80C, 80D, HRA, home loan interest, etc.) but has higher tax rates. The New regime (default from FY 2023-24) offers lower tax rates and a higher rebate limit of ₹7 lakhs but does not allow most deductions. The New regime also provides a standard deduction of ₹75,000 for FY 2024-25.
It depends on your total deductions. If your total deductions under 80C, 80D, HRA, home loan interest, etc. exceed approximately ₹3.75 lakhs, the Old regime may save you more tax. If your deductions are less, the New regime with its lower rates is usually better. Use our calculator above to compare both regimes with your actual numbers.
Under the New regime for FY 2024-25, if your taxable income is up to ₹7,00,000, you get a full rebate under Section 87A — meaning zero tax payable. Under the Old regime, the rebate applies if taxable income is up to ₹5,00,000, with a maximum rebate of ₹12,500.
New regime slabs for FY 2024-25: Up to ₹3L — Nil; ₹3L to ₹7L — 5%; ₹7L to ₹10L — 10%; ₹10L to ₹12L — 15%; ₹12L to ₹15L — 20%; Above ₹15L — 30%. A standard deduction of ₹75,000 is also available for salaried individuals.
Yes, the New tax regime is the default regime from FY 2023-24 onwards. If you want to opt for the Old regime, you need to explicitly choose it when filing your ITR. Salaried individuals can inform their employer to deduct TDS under the Old regime if they prefer.
Yes, under the Old regime, senior citizens (60-80 years) have a basic exemption limit of ₹3,00,000 and super senior citizens (above 80) have ₹5,00,000, compared to ₹2,50,000 for those below 60. Under the New regime, the slabs are the same for all age groups, with the basic exemption at ₹3,00,000.