New vs Old Regime Comparison
Side-by-side comparison to choose the right tax regime.
Decide between the New Tax Regime (default for FY 2025-26) and the Old Regime. Enter your income and old-regime deductions to see side-by-side tax computation.
Income
Old regime deductions
(These are NOT available under New Regime)
Side-by-Side
New Regime
₹ 0
Old Regime
₹ 0
Taxable income
₹ 0
₹ 0
Enter income to see comparison.
When does each regime win?
- New Regime wins: Salaried taxpayers up to ₹12.75 lakh income with no/limited deductions, or anyone whose total old-regime deductions are below the break-even threshold (~₹3.75-4.5L for incomes ₹15-30L).
- Old Regime wins: Heavy users of HRA + 80C + 80D + home loan interest + NPS - typically total deductions of ₹4L+ for mid-to-high incomes.
- Switching: Salaried individuals can switch each year. Business/profession income earners can switch only once (via Form 10-IEA), and re-entering new regime is a once-in-lifetime option.
Important note: This tool provides an indicative output only. It does not factor in every special provision, surcharge, exception, or recent notification. Verify with the firm before acting on any computation.
Frequently Asked Questions
What is the difference between the old and new tax regimes?
The new regime offers lower slab rates but forgoes most deductions and exemptions — such as Section 80C, 80D, HRA and self-occupied home-loan interest — while the old regime has higher rates with the full set of deductions. The new regime is the default; taxpayers must actively opt for the old regime if it suits them better.
Which deductions are still allowed under the new regime?
The new regime allows a standard deduction of ₹75,000 for salaried taxpayers and pensioners, employer contributions to NPS under Section 80CCD(2), and a deduction against family pension, among a few others. Popular claims such as Section 80C investments, 80D health insurance premiums, HRA and LTA exemptions are not available.
Up to what income is tax zero under the new regime?
For FY 2025-26 (AY 2026-27), the Section 87A rebate makes tax nil for resident individuals with total income up to ₹12 lakh under the new regime — effectively ₹12.75 lakh for salaried taxpayers with the standard deduction. Under the old regime, the rebate limit remains ₹5 lakh. Special-rate income is generally outside the rebate.
Can I switch between the two regimes every year?
Salaried individuals without business income can choose either regime each year at the time of filing their return. Taxpayers with business or professional income can opt out of the new regime only once, by filing Form 10-IEA, and after switching back to the new regime they cannot opt for the old regime again.