What changed in the New Tax Regime in Budget 2024?

Budget 2024 made the New Regime more attractive with two key changes: the standard deduction was increased from ₹50,000 to ₹75,000 for salaried employees, and the rebate under Section 87A was extended so income up to ₹7 lakh is effectively tax-free under the New Regime. The tax slabs themselves remain unchanged from FY 2023-24.

What is the rebate under Section 87A?

Section 87A provides a tax rebate that makes certain income effectively tax-free. Under the New Regime for FY 2024-25, if your taxable income is up to ₹7 lakh, your entire tax liability is waived through this rebate. Under the Old Regime, the rebate applies if taxable income is up to ₹5 lakh. This calculator applies both rebates automatically based on your inputs.

Which regime is better for a salary of ₹12 lakh with 80C investments?

For ₹12L gross salary with maximum 80C (₹1.5L), standard deduction (₹50K), the Old Regime taxable income is ₹10L with roughly ₹1.17L tax. Under New Regime with ₹75K standard deduction, taxable income is ₹11.25L with roughly ₹90K tax. In this case the New Regime saves more. However, if you also claim HRA and NPS, the Old Regime may win. Use our calculator to enter your exact numbers.

Does this calculator include surcharge?

This calculator covers standard tax computation with health and education cess at 4%. Surcharge (10% for income above ₹50L, 15% above ₹1Cr) is not included as it varies based on income type and other factors. For incomes above ₹50L, the tax computed here will be slightly lower than actual — consult a CA for precise computation including surcharge.

Can I switch between Old and New regime every year?

Salaried employees can switch between Old and New regime every financial year at the time of filing their Income Tax Return. However, if you have business income, you can switch only once. Many employers ask you to declare your regime choice at the start of the year for TDS computation, but you can change this when filing your actual ITR.

📊

Income Tax Calculator FY 2024–25 — Old vs New Regime

Compare income tax under Old vs New regime FY 2024-25. Includes 80C, HRA, NPS, standard deduction, rebate 87A and cess.

About this tool

Compare your income tax liability under the Old and New tax regimes side by side for Financial Year 2024-25. Enter your gross annual income and deductions — 80C investments (PPF, ELSS, LIC), HRA exemption, NPS contributions, and other deductions — and instantly see which regime saves you more money. The calculator applies all Budget 2024 changes including the enhanced ₹75,000 standard deduction under the New Regime and the updated rebate under Section 87A.

📅 FY 2024–25 (AY 2025–26) · Includes Budget 2024 changes

Income

Gross Annual Income *

₹

CTC or total income before deductions

Deductions (Old Regime only)

80C Investments

₹

PPF, ELSS, LIC, EPF — max ₹1.5L

HRA Exemption

₹

House Rent Allowance exemption claimed

NPS (80CCD(1B))

₹

Additional NPS contribution — max ₹50K

Other Deductions

₹

80D (health insurance), 80E (education loan) etc.

📊

Enter your gross income to compare regimes

How we calculate this

All calculations run entirely in your browser — no data is sent to any server. Here is exactly how this tool works:

Enter your gross annual income (CTC or total income before deductions)
Under Old Regime, enter your deductions — 80C investments (max ₹1.5L), HRA exemption, NPS (max ₹50K), and other deductions like 80D
The calculator simultaneously computes tax under both regimes
A recommendation shows which regime saves more and by exactly how much

Frequently Asked Questions

Calculate monthly in-hand salary from CTC. PF, professional tax, income …

HRA Exemption Calculator — Section 10(13A)

Calculate HRA tax exemption — all 3 conditions, metro vs non-metro, mont…

TDS Calculator — All Sections FY 2024-25

Calculate TDS for professional fees, salary, rent, contractor payments. …

🔒100% Private — runs in your browser

⚡No uploads — instant results

🆓Always free — no sign-up

📱Works on mobile & desktop

About this tool

How we calculate this

Frequently Asked Questions

Related Tools