Advanced Income Tax Calculator (India) - New vs Old Regime Comparison

Parameter	Old Regime	New Regime
Gross Income	---	---
Standard Deduction (₹50k)	---	---
Total Chapter VI-A Deductions	---	0.00
Taxable Income	---	---
Net Tax Liability (incl. Cess)	---	---

Wealth Manager's Handbook: New vs. Old Tax Regime

The Core Differentiators (Current FY)

The choice between the Old Tax Regime and the New Tax Regime (default since FY 2023-24) is the most critical decision for salaried individuals.

Old Regime: Lower slab rates but allows for claiming over 70 exemptions and deductions (e.g., 80C, HRA, Sec 24b). Best for individuals with high loan/insurance commitments.
New Regime: Higher basic exemption limit (₹3 Lakh), but offers only a few deductions (like the ₹50,000 Standard Deduction). Best for individuals with minimal investments and deductions.
Key Change: The ₹50,000 Standard Deduction is now available under both the Old and New Regimes for salaried individuals (post FY 2023-24 amendment).

Tax Compliance FAQs for Banking Professionals

What is the 'Rebate' under Section 87A for both regimes?

Section 87A offers a full tax rebate if the taxable income does not exceed a certain limit. For the New Regime, the limit is ₹7 Lakh. For the Old Regime, the limit is ₹5 Lakh. This means those earning just above these limits may pay significantly more tax.

Is the Standard Deduction of ₹50,000 applicable in both regimes?

Yes, for the current Financial Year, the Standard Deduction of ₹50,000 for salaried and pensioners is applicable under both the Old and the New Tax Regimes. This significantly improved the benefit of the New Regime.

How is the interest on a self-occupied Home Loan treated under the two regimes?

Under the Old Regime, interest paid on a self-occupied house property loan (Sec 24b) is deductible up to ₹2 Lakh per annum. Under the New Regime, this deduction is not available, making the Old Regime often better for high home loan borrowers.

Income Tax Comparison (FY 2024-25)

Old Regime Deductions (Required for comparison)

Tax Comparison (Old vs. New)

Wealth Manager's Handbook: New vs. Old Tax Regime

The Core Differentiators (Current FY)

Tax Compliance FAQs for Banking Professionals