Understanding the New Tax Regime: What Taxpayers Should Know
With the standard deduction raised to ₹75,000 and Section 87A rebate expanding zero-tax liability up to ₹7.75 Lakhs, here is a detailed breakdown.
Compare your estimated income tax under the old and new tax regimes based on the information you provide.
A balanced, transparent breakdown of your estimated tax liability under the Old and New tax regimes.
Based on the information entered, the estimated tax differs by ₹0 between the two regimes.
| Particular | Old Tax Regime | New Tax Regime |
|---|---|---|
| Gross Total Income | ₹0 | ₹0 |
|
Less: Standard Deduction
Salaried individuals (₹50,000 Old / ₹75,000 New)
|
₹0 | ₹0 |
|
Less: Chapter VI-A Deductions
80C (PPF/ELSS), 80D (Health), 80CCD, 80E
|
₹0 | ₹0 (Not Allowed) |
| Total Deductions Considered | ₹0 | ₹0 |
| Net Taxable Income | ₹0 | ₹0 |
| Tax on Slabs (Before Rebate) | ₹0 | ₹0 |
|
Less: Rebate u/s 87A
Up to ₹5L in Old Regime / ₹7L in New Regime
|
₹0 | ₹0 |
| Health & Education Cess (4%) | ₹0 | ₹0 |
| Estimated Total Tax Liability | ₹0 | ₹0 |
| Effective Tax Rate | 0.00% | 0.00% |
Three simple steps to evaluate which tax structure aligns with your financial profile.
Provide your annual salary, interest income, rental income, or capital gains.
Enter Section 80C investments, 80D health insurance, and other qualifying deductions.
Review the side-by-side tax calculations and effective tax rates before filing your ITR.
Core structural distinctions between direct tax regimes in India.
The New Regime features six progressive, concessional slabs starting at 5% up to ₹7L. The Old Regime features three traditional slabs (5%, 20%, 30%).
The Old Regime rewards specific investments (PF, ELSS, Insurance, HRA, Home Loan Interest). The New Regime disallows most deductions in exchange for lower base rates.
Zero tax liability applies up to ₹7.75 Lakhs under the New Regime (including ₹75,000 standard deduction) vs up to ₹5.5 Lakhs under the Old Regime.
Under current tax laws, the New Regime is the default regime. Taxpayers wishing to utilize the Old Regime must explicitly opt in when filing Form 10-IEA/ITR.
This comparison is an estimate for general informational purposes only. Actual tax liability may vary depending on applicable tax laws, income classification, specific exemptions, surcharge, marginal relief and individual circumstances. Always verify the latest applicable rules against official sources or consult a qualified tax professional.