Regime Comparison Calculator
Compare your estimated tax liability under the New Tax Regime (Budget 2025 adjustments) vs. the Old Tax Regime with deductions side-by-side.
Income & Deductions Details
Old Regime Tax Exemptions
Save with the New Tax Regime
You save approximately ₹1,01,400 by opting for the New regime.
Regime Comparison
9,25,000
1,01,400
11,25,000
0
Important Note on Slabs
The calculation accounts for standard deductions of ₹75,000 for New Regime and ₹50,000 for Old Regime, alongside 87A rebate rules. Always cross-verify configurations with your tax advisor.
Frequently Asked Questions
Which tax regime is better for FY 2025-26?
Under the Budget rules for FY 2025-26, the New Tax Regime is generally more beneficial for individuals earning up to ₹12.75 Lakhs (gross) because of a zero tax liability after standard deductions and rebates. However, if you claim high deductions like Home Loan interest, HRA, and Section 80C PF investments exceeding ₹3.5–4 Lakhs in total, the Old Tax Regime may yield more tax savings.
What is the standard deduction in FY 2025-26?
For the fiscal year 2025-26, the standard deduction for salaried taxpayers is ₹75,000 under the New Tax Regime (raised from ₹50,000). For taxpayers choosing the Old Tax Regime, the standard deduction remains unchanged at ₹50,000.
Related Articles
Old Regime vs New Regime: The Answer Isn't as Obvious as You Think
Every March, millions of Indian salaried employees choose between the Old and New Tax Regimes — and a surprising number get it wrong. Not because they're careless, but because the answer genuinely depends on deductions that vary enormously from person to person.
The New Regime offers lower slab rates but removes most deductions. The Old Regime has higher slabs but allows HRA, 80C, 80D, home loan interest, NPS contributions, and much more. Whether the Old Regime wins depends entirely on your actual deduction total.
A general rule: if your annual deductions (80C + HRA + 80D + home loan interest + NPS) exceed ₹3.5–4 lakhs, the Old Regime typically saves you more tax. Below that threshold, the New Regime usually wins. But "typically" and "usually" are doing a lot of work in those sentences — always run the actual numbers.
FY 2025-26 update: The New Regime now has a ₹75,000 standard deduction for salaried employees and the tax-free income threshold under New Regime is ₹12 lakhs (after rebate). This has tilted the balance toward New Regime for more taxpayers than before. Use this calculator to find out exactly where you stand.