New vs Old Tax Regime Calculator
An honest, mathematical comparison designed for Indian taxpayers. Includes revised ₹75,000 Standard Deduction, the new ₹3L-₹7L 5% slab, Section 87A rebate (zero tax up to ₹7.75 Lakhs), HRA exemption, 80C, 80D, 14% employer NPS, and your personalized Break-Even Tipping Point.
Includes EPF, VPF, PPF, ELSS Mutual Funds, Life/Term Insurance, Home Loan Principal, SSY, NSC, Children Tuition fees.
Calculating your custom break-even threshold…
| Component | New Regime | Old Regime |
|---|---|---|
| Gross Total Income | ₹0 | ₹0 |
| Standard Deduction | ₹0 | ₹0 |
| HRA Exemption u/s 10(13A) | N/A | ₹0 |
| Home Loan Interest (Sec 24b) | N/A | ₹0 |
| Section 80C Deductions | N/A | ₹0 |
| Section 80D Health Insurance | N/A | ₹0 |
| Self NPS u/s 80CCD(1B) | N/A | ₹0 |
| Employer NPS u/s 80CCD(2) | ₹0 | ₹0 |
| Other Deductions (80E, 80G, PT, 80TTA) | N/A | ₹0 |
| Total Deductions & Exemptions | ₹0 | ₹0 |
| Net Taxable Income | ₹0 | ₹0 |
| Tax Calculated as per Slabs | ₹0 | ₹0 |
| Section 87A Tax Rebate | -₹0 | -₹0 |
| Surcharge (if income > ₹50L) | ₹0 | ₹0 |
| Health & Education Cess (4%) | ₹0 | ₹0 |
| TOTAL ANNUAL TAX PAYABLE | ₹0 | ₹0 |
| Estimated Monthly Take-Home | ₹0 | ₹0 |
💡 Honest Indian Tax Rules: What You Need to Know (Budget 2024 Updates)
Zero-hype insights to help you make an informed choice between the New and Old Tax Regimes.
⚖️ Standard Deduction Hiked to ₹75,000
In Union Budget 2024, the Standard Deduction for salaried employees and pensioners under the New Tax Regime was bumped from ₹50,000 to ₹75,000. Under the Old Regime, it stays capped at ₹50,000. Combined with the Section 87A rebate, salaried employees earning up to ₹7.75 Lakhs pay ZERO tax under the New Regime!
🪙 Employer NPS (80CCD-2) is Allowed in BOTH!
Many taxpayers falsely assume all deductions are lost in the New Regime. Section 80CCD(2) (Employer’s contribution to NPS) is 100% tax-exempt in both regimes! In Budget 2024, the deduction limit for private sector employees in the New Regime was raised from 10% to 14% of Basic + DA.
🎯 The “Break-Even” Rule of Thumb
As a rough rule of thumb for salaried taxpayers in the ₹10L – ₹20L CTC range:
- If your total deductions (80C + 80D + HRA + Home Loan Interest) are under ₹3.5 Lakhs, the New Regime almost always wins.
- If you pay heavy rent with genuine HRA, or have a ₹2 Lakh home loan interest deduction plus 80C and 80D (total deductions exceeding ₹4L), the Old Regime can still save money.
🔄 Can You Switch Regimes Every Year?
Salaried Individuals: Yes! Salaried employees can switch between New and Old regimes every financial year while filing their ITR on or before the due date (July 31st).
Business / Professionals: Taxpayers with business or professional income get only one lifetime opportunity to opt out of the New Regime and switch back to Old, after which they cannot easily switch back.
Invest Your Tax Savings Smartly
Don’t let saved tax sit idle in low-interest savings accounts. Put compounding to work via direct mutual funds.