The new regime has lower slabs and a ₹75,000 standard deduction, but no 80C, 80D, HRA or home loan interest deductions. The old regime allows these, but its slabs are higher. The question: how big must your deductions be for the old regime to be cheaper?
| Gross salary | Tax in new regime | Deductions needed for the old regime to match* |
|---|---|---|
| ₹10,00,000 | ₹0 | ₹4,48,000 |
| ₹15,00,000 | ₹97,500 | ₹5,42,000 |
| ₹20,00,000 | ₹1,92,400 | ₹7,06,000 |
| ₹30,00,000 | ₹4,75,800 | ₹7,98,000 |
*On top of the ₹50,000 standard deduction and ₹2,500 professional tax. With fewer deductions than this, the new regime is cheaper.
Add up your deductions
- 80C: up to ₹1.5 lakh (PF, PPF, ELSS, LIC, children's tuition fees, home loan principal).
- 80D: health insurance premium, with separate limits for yourself and your parents.
- Home loan interest: up to ₹2 lakh on a home you live in.
- HRA: if you live in a rented home, as per the rules.
Most salaried people's total deductions do not reach ₹4-5 lakh, so the new regime is cheaper for them. People with a home loan, high HRA and full 80C can still gain from the old regime.
Enter your salary and deductions to see both regimes side by side in the salary calculator.
Change the amount, rate and tenure and see it instantly.
Frequently asked questions
Can I switch regimes every year?
Salaried people can usually choose the regime each year when filing the ITR. The rules are stricter for business income.
Which regime should I tell my employer?
The regime you tell your employer at the start of the year is only for TDS; the final choice can be made in the ITR.