Choosing Between the Old and New Tax Regime for FY 2024-25 & FY 2025-26
The Government of India offers two tax regimes for individuals, and choosing the right one can significantly impact your savings. Our calculator simplifies this choice by showing you the exact tax outgo in both scenarios.
Old Tax Regime
The old regime is beneficial for those who make full use of tax-saving deductions. It allows you to reduce your taxable income by claiming exemptions like HRA, LTA, and deductions under Chapter VI-A (such as Section 80C, 80D, 80E, etc.). The tax slabs in this regime have higher rates compared to the new one.
New Tax Regime (Default)
The new regime, which is the default option from FY 2023-24, offers lower tax rates but requires you to forgo most of the common exemptions and deductions. It simplifies tax filing but might not be the best choice for everyone. A standard deduction of ₹50,000 for salaried employees is now available in the new regime as well.
From Tax Planning to Home Ownership
Tax planning is step one in responsible home buying. Learn how to connect your tax strategy with complete home loan planning in our detailed Home Loan Planning Guide, where we walk you through each financial consideration.
Key Changes for FY 2024-25 & FY 2025-26
- Standard Deduction: ₹50,000 available under both regimes
- New Regime Slabs: Revised tax slabs with lower rates
- Rebate under Section 87A: Enhanced to ₹7 lakh taxable income for new regime
- No Change in Old Regime: Existing slabs and deductions continue