Use the New vs Old Tax Regime Calculator to apply these slabs to your actual income. To see how tax is deducted monthly from salary, read What is TDS. Full salary breakdown with these slabs applied: CTC to In-Hand Calculator.
New Tax Regime — Slab Rates (Default from FY 2023-24)
The New Regime is the default regime from FY 2023-24 onwards. It offers lower slab rates but allows almost no deductions or exemptions.
| Annual Income | Tax Rate | Tax Amount on Slab |
|---|---|---|
| Up to ₹4,00,000 | 0% | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% | Up to ₹20,000 |
| ₹8,00,001 – ₹12,00,000 | 10% | Up to ₹40,000 |
| ₹12,00,001 – ₹16,00,000 | 15% | Up to ₹60,000 |
| ₹16,00,001 – ₹20,00,000 | 20% | Up to ₹80,000 |
| ₹20,00,001 – ₹24,00,000 | 25% | Up to ₹1,00,000 |
| Above ₹24,00,000 | 30% | 30% on amount above ₹24L |
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Old Tax Regime — Slab Rates
The Old Regime has higher slab rates but allows deductions under Section 80C (₹1.5 lakh), HRA exemption, home loan interest, 80D (health insurance), and many others. You must opt in to the Old Regime while filing your ITR.
| Annual Income | Tax Rate (Below 60) | Tax Rate (60-80) | Tax Rate (80+) |
|---|---|---|---|
| Up to ₹2,50,000 | 0% | 0% | 0% |
| ₹2,50,001 – ₹3,00,000 | 5% | 0% | 0% |
| ₹3,00,001 – ₹5,00,000 | 5% | 5% | 0% |
| ₹5,00,001 – ₹10,00,000 | 20% | 20% | 20% |
| Above ₹10,00,000 | 30% | 30% | 30% |
Section 87A Rebate (Old Regime): If total taxable income (after all deductions) is ₹5 lakh or below, tax is fully rebated. Maximum rebate ₹12,500.
Surcharge on Income Tax
Surcharge is charged on the income tax amount (not on income) for high earners. Same rates apply for both New and Old regime.
| Total Income | Surcharge Rate |
|---|---|
| Up to ₹50 lakh | Nil |
| ₹50 lakh – ₹1 crore | 10% |
| ₹1 crore – ₹2 crore | 15% |
| ₹2 crore – ₹5 crore | 25% |
| Above ₹5 crore | 25% (capped under New Regime at 25%) |
Health and Education Cess
A 4% cess on income tax (including surcharge) is applied to all taxpayers. This goes to health and education fund. There is no exemption or deduction against cess.
New Regime vs Old Regime — Which is Better?
The break-even point where both regimes result in equal tax is approximately ₹3.75 lakh in total deductions. If your combined deductions under the Old Regime exceed ₹3.75 lakh, the Old Regime saves more tax. Below that, the New Regime wins.
| Annual Income | New Regime Tax | Old Regime Tax (no deductions) | Old Regime Tax (₹1.5L 80C only) |
|---|---|---|---|
| ₹6,00,000 | ₹0 (rebate) | ₹23,400 | ₹0 (rebate) |
| ₹8,00,000 | ₹20,800 | ₹54,600 | ₹31,200 |
| ₹10,00,000 | ₹41,600 | ₹1,09,200 | ₹85,800 |
| ₹12,00,000 | ₹0 (rebate) | ₹1,49,500 | ₹1,26,100 |
| ₹15,00,000 | ₹1,30,000 | ₹2,10,600 | ₹1,87,200 |
*Tax amounts include 4% cess. Old Regime calculations assume standard deduction of ₹50,000 (pre-2025 amount).
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Key Deductions Available Only in Old Regime
- Section 80C — Up to ₹1,50,000: PPF, ELSS, LIC premium, EPF, NSC, home loan principal, tuition fees
- Section 80D — Health insurance: ₹25,000 for self/family, ₹50,000 for senior citizen parents
- HRA Exemption — Section 10(13A): minimum of actual HRA, 50%/40% of basic, rent minus 10% of basic
- Home Loan Interest — Section 24(b): up to ₹2,00,000 for self-occupied property
- Standard Deduction — ₹50,000 flat (Old Regime); ₹75,000 under New Regime from FY 2024-25
- Section 80CCD(1B) — Additional ₹50,000 for NPS contribution over 80C limit