Finance

Income Tax Calculator India 2024-25: New Tax Regime vs Old Regime Explained

A complete guide to calculating your income tax in India for FY 2024-25. Understand the new tax regime slabs, compare with the old regime, and find out which saves you more money.

2026-06-288 min readBy ToolHive Team

Understanding Income Tax in India for FY 2024-25

Every salaried individual and business owner in India must file an income tax return each year. For FY 2024-25 (Assessment Year 2025-26), the government has made the new tax regime the default while keeping the old regime available as an opt-in. Understanding the difference between the two is critical to minimising your tax liability.

Our free income tax calculator lets you compare both regimes instantly. Enter your CTC, investments, and deductions — and the tool tells you exactly how much tax you owe under each regime.

New Tax Regime Slabs for FY 2024-25

The new tax regime introduced in Budget 2020 and revised in Budget 2023 offers lower tax rates but no deductions. For FY 2024-25, the new regime slabs are:

  • Up to Rs. 3,00,000 — Nil
  • Rs. 3,00,001 to Rs. 6,00,000 — 5%
  • Rs. 6,00,001 to Rs. 9,00,000 — 10%
  • Rs. 9,00,001 to Rs. 12,00,000 — 15%
  • Rs. 12,00,001 to Rs. 15,00,000 — 20%
  • Above Rs. 15,00,000 — 30%

A 4% health and education cess applies on the tax calculated. Additionally, if your taxable income is up to Rs. 7 lakh under the new regime, Section 87A rebate brings your tax liability to zero.

Standard Deduction Under the New Regime

Starting FY 2024-25, a standard deduction of Rs. 75,000 (raised from Rs. 50,000) is available under the new tax regime for salaried employees and pensioners. This is automatically deducted from your gross salary before calculating tax. No bills or proof are required.

Old Tax Regime Slabs

The old tax regime has higher slabs but allows a wide range of deductions:

  • Up to Rs. 2,50,000 — Nil (Rs. 3,00,000 for senior citizens, Rs. 5,00,000 for super senior citizens aged 80+)
  • Rs. 2,50,001 to Rs. 5,00,000 — 5%
  • Rs. 5,00,001 to Rs. 10,00,000 — 20%
  • Above Rs. 10,00,000 — 30%

Under the old regime, you can claim deductions under Section 80C (up to Rs. 1.5 lakh), Section 80D (health insurance), HRA, LTA, home loan interest (Section 24), NPS contributions, and many others.

New Regime vs Old Regime: Which Saves More?

The answer depends on your income level and how much you invest in tax-saving instruments.

New regime is better if:

  • You do not have significant Section 80C, 80D, or home loan deductions
  • Your income is below Rs. 15 lakh and you do not invest much in ELSS, PPF, or LIC
  • You prefer simplicity over tax planning

Old regime is better if:

  • You claim the full Rs. 1.5 lakh under 80C (PPF, ELSS, EPF, LIC premium, tuition fees)
  • You have a home loan with significant interest payments (Section 24)
  • You contribute to NPS (additional Rs. 50,000 under 80CCD(1B))
  • You pay health insurance premiums (Section 80D)
  • Your HRA exemption is substantial

As a general rule of thumb: if your total deductions (beyond the standard deduction) exceed Rs. 3.75 lakh, the old regime is likely better for incomes above Rs. 15 lakh. Below that, run the numbers using our income tax calculator.

How to Use the Income Tax Calculator

  1. Enter your annual CTC or gross income — this is your total compensation before any deductions.
  2. Select your age group — below 60, 60–79 (senior citizen), or 80+ (super senior citizen).
  3. Enter your deductions — Section 80C investments, health insurance, home loan interest, HRA, NPS, etc.
  4. Choose your regime — or let the tool compare both and show you which is more tax-efficient.
  5. View your tax liability — the tool shows base tax, surcharge (if applicable), cess, and net take-home.

Key Tax Deadlines for FY 2024-25

  • Advance tax (June 15) — 15% of estimated tax liability
  • Advance tax (September 15) — 45% cumulative
  • Advance tax (December 15) — 75% cumulative
  • Advance tax (March 15) — 100%
  • ITR filing deadline — July 31, 2025 (for non-audit cases)

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