What is the new tax regime for FY 2024-25?

The new tax regime for FY 2024-25 has revised slabs: 0% up to ₹3 lakh, 5% from ₹3–7 lakh, 10% from ₹7–10 lakh, 15% from ₹10–12 lakh, 20% from ₹12–15 lakh, and 30% above ₹15 lakh. A standard deduction of ₹75,000 is available.

Which tax regime is better — old or new?

It depends on your deductions. If your total deductions (80C, HRA, home loan interest, etc.) exceed ₹3.75 lakh, the old regime is usually better. Otherwise, the new regime is more beneficial.

What is the standard deduction for salaried employees?

For FY 2024-25, the standard deduction is ₹75,000 under the new regime and ₹50,000 under the old regime for salaried employees and pensioners.

What is Section 80C deduction?

Section 80C allows deduction up to ₹1.5 lakh for investments in EPF, PPF, ELSS, NSC, tax-saving FD, life insurance premiums, and home loan principal repayment.

What is the rebate under Section 87A?

Under the new regime, a full tax rebate is available if taxable income does not exceed ₹7 lakh, making the effective tax zero. Under the old regime, the rebate applies up to ₹5 lakh.

What is Health and Education Cess?

A 4% Health and Education Cess is levied on the total income tax (including surcharge) payable. This is applicable under both old and new tax regimes.

Can I switch between old and new tax regime?

Salaried individuals can switch between regimes every year. Business owners can switch only once from new to old regime.

What is HRA exemption?

HRA (House Rent Allowance) exemption is available only under the old regime. It is the minimum of: actual HRA received, 50% of salary (metro) or 40% (non-metro), or actual rent paid minus 10% of salary.

What is surcharge on income tax?

Surcharge is levied on income above ₹50 lakh: 10% for ₹50L–₹1Cr, 15% for ₹1Cr–₹2Cr, 25% for ₹2Cr–₹5Cr, and 37% above ₹5Cr (capped at 25% under new regime).

What is the due date for filing ITR?

For salaried individuals, the ITR filing due date is July 31 of the assessment year. For businesses requiring audit, it is October 31.

Income Tax Calculator FY 2024-25

Compare Old vs New Tax Regime and find which saves you more

Enter Your Income & Deductions

Gross Annual Income (₹)

Include salary, bonus, other income

Section 80C (₹) — max ₹1.5L

EPF, PPF, ELSS, LIC, NSC, etc.

HRA Exemption (₹)

Only applicable in old regime

Section 80D — Health Insurance (₹)

Max ₹25,000 (₹50,000 for senior citizens)

Home Loan Interest — Sec 24(b) (₹)

Max ₹2 lakh for self-occupied property

Other Deductions (₹)

80E, 80G, NPS, etc.

Old Regime saves you ₹26,260 more in taxes

Based on your inputs above

New Tax Regime (FY 2024-25)

Taxable Income₹11,25,000

Basic Tax₹68,750

Surcharge₹0

Cess (4%)₹2,750

Total Tax₹71,500

Net Income₹11,28,500

Effective Rate5.96%

✓ RECOMMENDED

Old Tax Regime

Taxable Income₹6,55,000

Basic Tax₹43,500

Surcharge₹0

Cess (4%)₹1,740

Total Tax₹45,240

Net Income₹11,54,760

Effective Rate3.77%

New Regime — Slab Breakdown

Slab	Rate	Tax
₹0.0L – ₹3.0L	0%	₹0
₹3.0L – ₹7.0L	5%	₹20,000
₹7.0L – ₹10.0L	10%	₹30,000
₹10.0L – ₹12.0L	15%	₹18,750

Old Regime — Slab Breakdown

Slab	Rate	Tax
₹0.0L – ₹2.5L	0%	₹0
₹2.5L – ₹5.0L	5%	₹12,500
₹5.0L – ₹10.0L	20%	₹31,000

🧾 Income Tax Guide India — Old vs New Regime

"In India, income tax is a direct tax levied on the annual income of individuals and businesses. Since FY 2020-21, taxpayers have the choice between the Old Regime (with deductions) and the New Regime (lower rates, no deductions)."

🆕 The New Regime (FY 2024-25)

The default regime starting 2023. It offers lower tax rates but removes almost all deductions (80C, 80D, HRA).

✅ Standard Deduction: ₹75,000
✅ No tax up to ₹7 Lakh taxable income.
✅ Simplified compliance (no proof submission).

👴 The Old Regime

Ideal for those with high investments and home loans. You can claim multiple deductions to reduce taxable income.

✅ Sec 80C: Up to ₹1.5L (EPF, PPF, LIC).
✅ HRA: Based on rent paid.
✅ Sec 24b: Home loan interest up to ₹2L.

Which One Should You Choose?

Income less than ₹7.75L

New Regime

Zero tax for most cases.

High Deductions

Old Regime

If deductions more than ₹4.25L.

Simplified

New Regime

If you want no paperwork.

💰 Standard Deduction

A flat amount deducted from your gross salary before calculating tax. For FY 2024-25, it is ₹75,000 in the New Regime and ₹50,000 in the Old Regime.

🛡️ Sec 87A Rebate

In the New Regime, if your taxable income is up to ₹7 Lakh, your tax becomes Zero. In the Old Regime, this limit is ₹5 Lakh.

Tax Filing Deadlines

Individual taxpayers (salaried) must file their Income Tax Return (ITR) by July 31st every year. Late filing attracts a penalty up to ₹5,000 under Section 234F.

Deadline: July 31

Penalty: Up to ₹5k

Frequently Asked Questions

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