Confused about choosing between the old vs new tax regime? Use our old vs new tax regime calculator to compare slabs, deductions, and savings. Get expert insights, government updates, and a step-by-step guide to selecting the best tax regime for your income.
Taxation plays a crucial role in personal financial planning, and understanding the latest changes in India’s tax system is essential for making informed decisions. In 2020, the Government of India introduced the new tax regime alongside the existing old tax regime, giving taxpayers the flexibility to choose between the two.
While the old tax regime allows multiple deductions and exemptions, the new tax regime offers lower tax rates with minimal exemptions.
Old vs New Tax Regime Calculator
| Head | Details/ Amt. |
|---|---|
| Gross Income | |
| Exemptions u/s 10 A (HRA etc.) | |
| Professional Tax | |
| Net Income under Salaries | 0.00 |
| Standard Deduction (Auto Applied) | 50000 |
| Deductions u/s 80 C (PF, PPF, Ins, ELSS, NPS: Max Rs.150000) | |
| Deductions u/s 80 CCD (NPS: Max Rs. 50000/-) | |
| Deductions u/s 80 D (Health Insurance: Max Rs. 35000/- ) | |
| Deductions u/s 80 G (Eligible Donations) | |
| Deductions u/s 80 E (Education Loan Interest) | |
| Deductions u/s 80 TTA (FD/Post Office Interest: Max Rs. 40000/-) | |
| Tax Benefit u/s 24 (Home Loan Interest Paid: Max Rs. 200000/-) | |
| Total Deductions/Benefits | 0.00 |
With these choices, many taxpayers struggle to determine which regime is more beneficial for their financial situation. The decision depends on multiple factors, including salary structure, eligible deductions, and overall tax liability. This is where an old vs new tax regime calculator becomes an essential tool.
An old vs new tax regime calculator helps individuals compare both tax structures instantly by analyzing their income, deductions, and applicable tax rates. Instead of manually calculating tax liability under both regimes, taxpayers can rely on this tool to make an informed choice. By using the old vs new tax regime calculator, one can determine which option leads to lower tax payments, ensuring better financial planning and compliance with the latest tax laws.
In the following sections, we will explore the differences between the old and new tax regimes, their advantages and disadvantages, and how to use a tax regime calculator to choose the best option for your financial needs.
Understanding the Old Tax Regime
The old tax regime has been the traditional taxation system in India, offering various exemptions and deductions that help reduce taxable income. This system is particularly beneficial for salaried employees, business professionals, and individuals who actively invest in tax-saving instruments.
Old Tax Slab Structure
Under the old tax regime, income is taxed based on a progressive slab system, where higher earnings attract higher tax rates. The following are the tax slabs applicable under this system for individual taxpayers (as per previous financial years):
| Annual Income (₹) | Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 - ₹5,00,000 | 5% |
| ₹5,00,001 - ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Senior citizens (60 years and above) and super senior citizens (80 years and above) enjoy higher exemption limits.
Available Exemptions and Deductions
One of the biggest advantages of the old tax regime is the availability of multiple deductions under the Income Tax Act, 1961, allowing taxpayers to reduce their taxable income significantly. Some of the key deductions include:
- Section 80C: Deduction of up to ₹1.5 lakh on investments like EPF, PPF, ELSS, NSC, and life insurance premiums.
- Standard Deduction: Flat deduction of ₹50,000 for salaried employees and pensioners.
- Section 80D: Tax benefits on health insurance premiums (₹25,000 for individuals and ₹50,000 for senior citizens).
- House Rent Allowance (HRA): Exemption on rent paid, depending on salary and city of residence.
- Leave Travel Allowance (LTA): Tax-free reimbursement for domestic travel expenses.
These deductions make the old tax regime attractive for individuals who actively invest in tax-saving instruments and claim multiple exemptions.
Pros and Cons of the Old Tax Regime
Pros:
- Significant tax savings through deductions and exemptions.
- Beneficial for individuals with high expenses on insurance, housing, and retirement planning.
- Encourages financial discipline by promoting long-term savings and investments.
Cons:
- Complex and paperwork-intensive due to multiple deductions.
- Limited flexibility, as tax savings depend on specific investments and expenses.
- Higher tax rates compared to the new tax regime for certain income groups.
For taxpayers who maximize deductions under 80C, 80D, HRA, and other sections, the old tax regime can be a cost-effective choice. However, to determine whether this option is better compared to the new tax structure, using an old vs new tax regime calculator is recommended. This tool provides a precise tax comparison, helping individuals make the best financial decision.
Understanding the New Tax Regime
In Budget 2020, the Government of India introduced the new tax regime as an alternative to the traditional tax system. This system simplifies taxation by offering lower tax rates while eliminating most deductions and exemptions. The goal of the new tax regime is to make tax filing easier and provide flexibility for taxpayers who do not claim multiple deductions.
New Tax Slab Rates Without Exemptions
Unlike the old tax regime, which allows various exemptions and deductions, the new tax regime follows a straightforward slab system with reduced tax rates. The latest tax slabs under the new tax regime are:
| Annual Income (₹) | Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 - ₹5,00,000 | 5% |
| ₹5,00,001 - ₹7,50,000 | 10% |
| ₹7,50,001 - ₹10,00,000 | 15% |
| ₹10,00,001 - ₹12,50,000 | 20% |
| ₹12,50,001 - ₹15,00,000 | 25% |
| Above ₹15,00,000 | 30% |
One of the biggest differences between the old vs new tax regime is that the new tax regime does not allow deductions under Section 80C, 80D, HRA, LTA, or other exemptions that taxpayers traditionally claim under the old tax regime.
Benefits and Drawbacks of the New Tax Regime
Benefits:
- Lower tax rates for individuals across multiple income brackets.
- Suitable for individuals with minimal investments or deductions.
- Simpler tax filing process, as no documentation is needed for deductions.
- Higher in-hand salary, as there is no need to invest in tax-saving instruments.
Drawbacks:
- No tax-saving benefits from deductions like 80C, 80D, or HRA.
- May not be beneficial for taxpayers with high investments in insurance, housing, or retirement funds.
- Less incentive for long-term financial planning and savings.
Since the benefits of each regime depend on an individual’s income and investment pattern, it is crucial to use an old vs new tax regime calculator to determine which system is more suitable. This tool provides an instant comparison, allowing taxpayers to make an informed choice based on their financial situation.
Key Differences: Old vs New Tax Regime
Choosing between the old vs new tax regime can be challenging, as both have distinct advantages. While the old tax regime offers deductions and exemptions to reduce taxable income, the new tax regime provides lower tax rates with a simplified structure. To help taxpayers make an informed decision, let's compare both regimes based on tax slabs, savings potential, and real-world examples.
Comparative Table: Old vs New Tax Slabs
The table below highlights the tax rates applicable under both the old tax regime and new tax regime:
| Annual Income (₹) | Old Tax Regime (With Deductions) | New Tax Regime (Without Deductions) |
|---|---|---|
| Up to ₹2,50,000 | Nil | Nil |
| ₹2,50,001 - ₹5,00,000 | 5% (rebate under 87A applies) | 5% (rebate under 87A applies) |
| ₹5,00,001 - ₹7,50,000 | 20% (after deductions) | 10% |
| ₹7,50,001 - ₹10,00,000 | 20% (after deductions) | 15% |
| ₹10,00,001 - ₹12,50,000 | 30% (after deductions) | 20% |
| ₹12,50,001 - ₹15,00,000 | 30% (after deductions) | 25% |
| Above ₹15,00,000 | 30% | 30% |
In the old tax regime, taxpayers can claim deductions under 80C, 80D, HRA, and LTA, which significantly reduce taxable income. However, in the new tax regime, these deductions are not available, but the tax rates are lower across multiple income slabs.
Analysis of Savings Potential Based on Salary Range
The choice between the old vs new tax regime depends largely on salary structure and available deductions. Let’s analyze savings potential based on different salary brackets:
- Annual Income: ₹7,00,000
- Old Tax Regime: If the taxpayer claims deductions under 80C, 80D, and HRA, the taxable income can be reduced to ₹5,00,000, resulting in zero tax due to Section 87A rebate.
- New Tax Regime: Taxable income remains ₹7,00,000, and after the rebate, the tax liability is also zero.
Both regimes are equally beneficial in this case.
-
Annual Income: ₹12,00,000
- Old Tax Regime: If the taxpayer claims deductions of ₹2,50,000 (80C, 80D, HRA, etc.), the taxable income is reduced to ₹9,50,000, and tax payable is approximately ₹1,06,600.
- New Tax Regime: Without deductions, tax liability is ₹1,30,000, which is higher than the old tax regime.
The old tax regime is more beneficial for those with higher deductions.
-
Annual Income: ₹18,00,000
- Old Tax Regime: If deductions of ₹3,00,000 are claimed, taxable income reduces to ₹15,00,000, and tax payable is approximately ₹2,73,000.
- New Tax Regime: Tax payable is ₹2,73,000, which is the same as the old regime.
Both regimes are similar at higher income levels.
Example Scenarios: Salaried Employees & Professionals
Scenario 1: Salaried Employee with High Investments
Ravi, a software engineer earning ₹10,00,000 annually, invests ₹1,50,000 in PPF, pays ₹25,000 for health insurance, and has ₹1,00,000 HRA exemption. Under the old tax regime, his taxable income drops to ₹7,25,000, resulting in lower tax liability. The new tax regime, without deductions, results in higher tax. Ravi benefits from the old tax regime.
Scenario 2: Freelance Professional with No Deductions
Priya, a freelancer earning ₹9,00,000 per year, does not have significant tax-saving investments. Since she cannot claim deductions, the new tax regime with its lower tax rates is beneficial for her.
Since the best choice varies based on individual financial situations, using an old vs new tax regime calculator can help taxpayers determine the most tax-efficient option. This tool provides instant tax comparisons, allowing individuals to optimize their tax savings effectively.
Who Should Choose the Old Tax Regime?
The old tax regime is ideal for individuals who maximize tax-saving deductions and exemptions. Since it allows taxpayers to claim benefits under Section 80C, 80D, HRA, LTA, and other provisions, it can significantly lower taxable income, making it the preferred choice for those who actively invest in tax-saving instruments.
Ideal Scenarios Where the Old Tax Regime is Beneficial
Taxpayers should opt for the old tax regime if they:
- Have significant investments in tax-saving instruments like PPF, EPF, NSC, ELSS, and life insurance (eligible under Section 80C).
- Pay for health insurance premiums for themselves and their families (eligible for Section 80D deductions).
- Live in rented accommodation and claim House Rent Allowance (HRA) exemption.
- Receive benefits like Leave Travel Allowance (LTA), Standard Deduction, and Home Loan Interest Deduction.
- Have a salary structure designed to optimize tax-saving exemptions.
If a taxpayer qualifies for multiple deductions, the old tax regime can lead to substantial tax savings compared to the new tax regime, which offers only lower tax rates without exemptions.
Taxpayers with High Deductions and Investments
Let’s analyze a scenario where the old tax regime provides greater tax savings:
| Particulars | Old Tax Regime (₹) | New Tax Regime (₹) |
|---|---|---|
| Annual Income | 12,00,000 | 12,00,000 |
| Standard Deduction | 50,000 | Not Applicable |
| Section 80C (PPF, EPF, ELSS, etc.) | 1,50,000 | Not Applicable |
| Section 80D (Health Insurance) | 25,000 | Not Applicable |
| House Rent Allowance (HRA) | 1,00,000 | Not Applicable |
| Taxable Income | 9,75,000 | 12,00,000 |
| Income Tax Payable | ₹1,06,600 | ₹1,30,000 |
Tax Savings in Old Regime: ₹23,400
Since this taxpayer maximizes deductions, the old tax regime is the better choice, as it leads to lower taxable income and greater savings.
Case Study: Salaried Employee Choosing the Old Tax Regime
Example: Amit, a marketing professional earning ₹10,00,000 per year, claims the following deductions:
- ₹1,50,000 under Section 80C (EPF, PPF, ELSS)
- ₹50,000 Standard Deduction
- ₹25,000 under Section 80D (Health Insurance)
- ₹75,000 as HRA exemption
Under the old tax regime, Amit’s taxable income is reduced to ₹7,00,000, lowering his tax liability to ₹52,500. In contrast, under the new tax regime, his taxable income remains at ₹10,00,000, and he pays ₹75,000 in taxes. Amit saves ₹22,500 by choosing the old tax regime.
Thus, for individuals with high deductions and investments, the old tax regime remains the best option. However, to determine the most beneficial tax structure for specific cases, using an old vs new tax regime calculator is recommended. This tool helps taxpayers compare both regimes accurately and choose the one that minimizes their tax burden.
Who Should Choose the New Tax Regime?
The new tax regime is ideal for taxpayers who prefer lower tax rates and a simplified tax filing process. Since it does not require investment in tax-saving instruments to claim deductions, it benefits individuals with minimal exemptions or those who want more disposable income without committing to long-term tax-saving schemes.
Ideal Taxpayers for the New Tax Regime
The new tax regime is a better choice for taxpayers who:
- Do not invest significantly in tax-saving instruments like PPF, EPF, NSC, ELSS, or life insurance.
- Have low medical insurance expenses and do not require Section 80D deductions.
- Do not pay house rent and cannot claim HRA exemptions.
- Prefer a simpler tax filing process without the need to maintain receipts or proofs for deductions.
- Are young professionals or freelancers who want to keep their income flexible instead of locking funds in tax-saving schemes.
- Earn a higher salary without significant deductions, as the lower tax rates may still result in savings compared to the old tax regime.
For such individuals, the new tax regime ensures a straightforward taxation system with reduced tax liabilities in certain income brackets.
Simplicity of Tax Filing and Lower Rates for Specific Income Groups
One of the biggest advantages of the new tax regime is the elimination of complex tax planning. Under this system:
- No need for investment proof submissions.
- Lower tax rates apply to most income groups, making tax calculations easier.
- No need to track multiple deductions.
For taxpayers who do not claim deductions, the new tax regime often results in lower tax payments compared to the old tax regime.
Case Study: Freelancer Choosing the New Tax Regime
Example: Priya, a freelance graphic designer, earns ₹9,00,000 per year. Since she does not contribute to EPF, PPF, insurance, or HRA, she is not eligible for most tax deductions under the old tax regime.
| Particulars | Old Tax Regime (₹) | New Tax Regime (₹) |
|---|---|---|
| Annual Income | 9,00,000 | 9,00,000 |
| Standard Deduction | 50,000 | Not Applicable |
| 80C (Investments in PPF, ELSS, etc.) | Not Applicable | Not Applicable |
| 80D (Health Insurance) | Not Applicable | Not Applicable |
| Taxable Income | 8,50,000 | 9,00,000 |
| Income Tax Payable | ₹85,800 | ₹62,500 |
Tax Savings in the New Regime: ₹23,300
Since Priya does not claim deductions, the new tax regime is more beneficial for her, offering lower tax rates and a simpler tax filing process.
Thus, individuals who prefer a hassle-free approach to taxation and do not want to commit to tax-saving investments should consider the new tax regime. However, to ensure the best financial decision, using an old vs new tax regime calculator is recommended. This tool helps taxpayers compare both regimes side by side and select the option that results in maximum tax savings.
How the Old vs New Tax Regime Calculator Works
Choosing between the old vs new tax regime can be confusing, especially when factoring in different tax slabs, deductions, and exemptions. An old vs new tax regime calculator helps taxpayers compare their tax liabilities under both regimes and determine the most tax-efficient option.
This online tool provides an instant and accurate tax comparison, making it easier for individuals to make informed financial decisions.
Step-by-Step Guide on Using an Old vs New Tax Regime Calculator
Using an old vs new tax regime calculator is simple and requires minimal inputs. Follow these steps:
Enter Your Annual Income:
-
Input your gross salary or total taxable income before deductions.
Select Your Exemptions & Deductions:
-
If you plan to opt for the old tax regime, enter applicable deductions such as:
- Section 80C: Investments in PPF, EPF, ELSS, NSC, Life Insurance, etc.
- LTA (Leave Travel Allowance), Standard Deduction, and Home Loan Interest Deduction.
- Section 80D: Health insurance premium payments.
- HRA (House Rent Allowance): If applicable.
Choose the Tax Regime for Comparison:
-
The calculator will automatically compare your tax liability under both the old tax regime and the new tax regime based on the latest tax slabs.
View the Tax Breakdown & Savings:
-
The tool displays:
- Total taxable income after deductions (for the old tax regime).
- Potential tax savings by choosing the optimal regime.
- Taxable income without deductions (for the new tax regime).
- Tax payable under each regime.
Decide the Best Tax Regime for You:
-
The calculator suggests whether you should opt for the old tax regime or the new tax regime based on your inputs.
Key Inputs Required for an Accurate Tax Calculation
To ensure precise tax calculations, users need to provide the following details:
- Annual Gross Income – Total salary before tax deductions.
- Investment & Savings Details – Contributions to PPF, EPF, LIC, ELSS, and other tax-saving instruments.
- Health Insurance Premiums – Medical insurance payments for self and family.
- Housing Rent & HRA Components – If applicable.
- Loan Interest (if any) – Home loan interest eligible for deduction under Section 24(b).
With these details, the old vs new tax regime calculator ensures that taxpayers receive an accurate tax comparison and can confidently choose the tax regime that minimizes their tax burden.
How the Tool Provides an Accurate Tax Comparison
The old vs new tax regime calculator instantly evaluates tax liability based on:
- Latest Income Tax Slabs: The tool is updated with the most recent tax rates as per the latest budget.
- Deductions & Exemptions: It considers eligible tax-saving deductions under the old tax regime while excluding them under the new tax regime.
- Instant Results: Within seconds, users receive a clear comparison showing how much tax they will pay under each regime.
- User-Friendly Interface: The calculator is designed for easy input and quick results, making tax planning simple.
By leveraging an old vs new tax regime calculator, taxpayers can make an informed choice and ensure they maximize their tax savings efficiently.
Factors to Consider Before Choosing a Tax Regime
Selecting between the old vs new tax regime requires careful evaluation of multiple factors, as the right choice depends on an individual's income structure, financial habits, and tax-saving preferences. While the old tax regime offers deductions and exemptions, the new tax regime provides lower tax rates with a simplified approach. Using an old vs new tax regime calculator can help taxpayers assess their options accurately.
Below are the key factors to consider before deciding on a tax regime:
1. Income Level and Tax Liability
Your annual income plays a crucial role in determining which tax regime is more beneficial:
- Higher-income individuals: If you earn a high salary and have significant tax-saving investments, the old tax regime may result in more savings due to deductions.
- Mid-income earners: Those earning between ₹7 lakh – ₹15 lakh should compare both regimes using an old vs new tax regime calculator to check which one offers lower tax liability.
- Lower-income taxpayers: If your income is below ₹7 lakh, the new tax regime may be beneficial, especially after the rebate under Section 87A.
2. Investment Habits and Financial Goals
Your investment pattern directly impacts the effectiveness of each tax regime:
- Regular investors in tax-saving instruments (PPF, EPF, ELSS, NPS, etc.): If you actively invest in tax-saving schemes, the old tax regime is more beneficial due to deductions under Section 80C, 80D, and 24(b).
- Those who prefer liquidity and flexibility: If you do not want to commit funds to tax-saving instruments and prefer a higher take-home salary, the new tax regime is a better choice.
- Retirement planning: If you prioritize long-term wealth creation through tax-saving schemes like PPF, NPS, and life insurance, the old tax regime provides additional financial security.
3. Future Tax Planning Strategies
Your future financial goals and tax planning strategies should align with your choice of tax regime:
- If you foresee significant tax-saving investments in the coming years, opting for the old tax regime now ensures maximum deductions.
- If you anticipate career growth and salary hikes, the new tax regime may be beneficial in the long run, especially if you do not plan to invest heavily in tax-saving instruments.
- For business owners and freelancers, the old tax regime may allow additional deductions on expenses, while salaried individuals with minimal deductions may find the new tax regime more favorable.
Use an Old vs New Tax Regime Calculator
Since tax benefits vary based on individual financial situations, using an old vs new tax regime calculator is the best way to determine the most tax-efficient option. The tool provides an instant tax comparison and ensures that taxpayers make an informed decision based on their income level, investment strategy, and future financial plans.
Government Guidelines & Expert Opinions
The old vs new tax regime continues to evolve as the government updates tax policies to simplify compliance and offer more flexibility to taxpayers. It is essential to stay informed about the latest guidelines issued by the Income Tax Department and expert opinions from financial advisors to make an informed tax regime selection.
Latest Updates from the Income Tax Department
The Income Tax Department has introduced key updates regarding the old vs new tax regime, particularly after the implementation of the Budget 2023:
- New Tax Regime as Default: From FY 2023-24, the new tax regime has become the default option for taxpayers. However, individuals still have the freedom to switch to the old tax regime if they prefer to claim deductions and exemptions.
- Standard Deduction Extended to New Tax Regime: A ₹50,000 standard deduction is now available under the new tax regime, reducing taxable income for salaried employees and pensioners.
- Section 87A Rebate Increased: Individuals with an income up to ₹7 lakh can avail a full tax rebate, making the new tax regime tax-free for this category.
- Updated Tax Slabs in the New Regime: The latest tax slabs under the new tax regime offer lower tax rates compared to the old tax regime, but without deductions for 80C, HRA, LTA, and other exemptions.
For the latest official updates, taxpayers can refer to the Income Tax Department website.
Expert Opinions from Financial Advisors
Tax experts and financial planners emphasize that choosing between the old vs new tax regime depends on individual financial goals and tax-saving habits.
Experts recommend the old tax regime for:
- Taxpayers who maximize deductions through 80C investments, home loan interest, HRA, and medical insurance.
- Individuals who prefer structured tax planning with long-term savings benefits.
Experts suggest the new tax regime for:
- Those who do not invest significantly in tax-saving schemes.
- Individuals who want a simplified tax system with lower tax rates and higher take-home salary.
Reference to Government Sources
To make an informed decision, taxpayers should always rely on credible government resources:
- Income Tax India Website (incometax.gov.in) – Official updates on tax slabs, rebates, and exemptions.
- Budget Announcements (indiabudget.gov.in) – Latest government policies on taxation.
- CBDT Circulars – Notifications regarding changes in tax policies and compliance rules.
Since tax laws are subject to change, it is always recommended to use an old vs new tax regime calculator for precise tax planning based on the most up-to-date regulations.
Conclusion & Key Takeaways
Choosing between the old vs new tax regime is a crucial financial decision that depends on various factors such as income level, tax-saving habits, and future financial goals. While the old tax regime provides multiple deductions and exemptions, the new tax regime offers lower tax rates and a simplified tax structure.
To make an informed decision, taxpayers should evaluate their eligible deductions, investment preferences, and tax liability under both regimes. The latest government updates and expert recommendations suggest that:
- The old tax regime is beneficial for individuals who actively invest in tax-saving schemes and have higher deductions under Sections 80C, 80D, and 24(b).
- The new tax regime is suitable for those who prefer higher take-home salary, do not claim major deductions, and want a straightforward tax filing process.
- Taxpayers earning up to ₹7 lakh benefit from the full tax rebate under the new tax regime, making it an attractive option for lower-income groups.
- Using an old vs new tax regime calculator provides a quick and accurate comparison of tax liabilities, helping individuals choose the most tax-efficient regime.
Make an Informed Choice with an Old vs New Tax Regime Calculator
Given the complexity of income tax planning, using an old vs new tax regime calculator is the best way to determine which regime maximizes tax savings. The tool allows individuals to:
- Compare tax liability under both regimes instantly.
- Factor in income, exemptions, deductions, and tax slabs.
- Choose the most suitable tax structure based on personal financial goals.
By leveraging this tool and staying updated with Income Tax Department guidelines, taxpayers can optimize their tax planning and ensure they pay the lowest possible tax while maximizing savings.
FAQ
What is the difference between the old and new tax regime?
The old tax regime offers deductions and exemptions under various sections, while the new tax regime has lower tax rates but no major exemptions.
Which tax regime is better for salaried employees?
Salaried employees with high deductions (HRA, 80C, 80D) may benefit from the old tax regime, while those without major deductions may save more with the new regime.
Is the new tax regime mandatory?
No, the new tax regime is the default option, but taxpayers can choose the old tax regime if it suits them better.
How can I decide which tax regime to choose?
You can use an old vs new tax regime calculator to compare tax liability under both regimes and choose the one that saves you more money.
Can I switch between the old and new tax regimes?
Salaried individuals can choose between the regimes every financial year, but those with business income can switch only once.
What deductions are available in the old tax regime?
The old tax regime allows deductions like 80C (₹1.5 lakh), 80D (medical insurance), HRA, LTA, and home loan interest under Section 24(b).
Does the new tax regime offer any deductions?
The new tax regime removes most deductions but allows a standard deduction of ₹50,000 for salaried employees and pensioners.
Is the ₹7 lakh income tax-free under the new tax regime?
Yes, under the new tax regime, individuals earning up to ₹7 lakh get a full tax rebate under Section 87A, making their income tax-free.
Where can I find official tax slab details?
You can check the latest tax slabs on the Income Tax Department website.
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