Enter your income and the deductions you actually claim, and see tax computed under both regimes side by side — so the choice is based on your own numbers, not a rule of thumb.
The same gross income is run through both regime configurations: the old regime applies your entered deductions (80C, HRA, home loan interest, etc.) before slab tax at higher rates; the new regime applies only the ₹75,000 standard deduction before slab tax at lower rates. Both include the applicable 87A rebate, surcharge, and cess, so the comparison is on final take-home, not just headline rates.
The new regime is simpler to administer and closes exemption-related paperwork and avoidance, and for taxpayers who don't use most deductions it results in a lower bill. Since FY 2023-24 it applies automatically unless you actively opt for the old regime when filing.
HRA exemption, Section 80C (₹1.5L — ELSS, PPF, life insurance, etc.), home loan interest under Section 24(b), and most other Chapter VI-A deductions. The new regime allows only a handful, mainly the standard deduction and employer NPS contributions.
Salaried individuals without business income can choose freely each financial year when filing. Those with business or professional income have a more restricted one-time switch back to the old regime.
Figures are estimates for informational purposes only, based on the assumptions you enter, and are not tax advice. Consult a Chartered Accountant or the Income Tax e-filing portal before filing.