Since the introduction of the new tax regime in India, choosing between the old regime with deductions and the new regime with lower rates has become a critical decision. The right choice depends on your income level, available deductions, and financial planning strategy.
These scenario-based tax calculations show you exactly how much tax you'll pay under both regimes for different income levels. Each example includes the complete calculation - from gross income to taxable income to final tax liability - so you can understand where your money goes and which regime works better for your situation.
These scenarios also explain standard deductions, tax-saving investments, and how effective tax rates work across different income brackets.
Browse Tax Scenarios by Income Level
Available Scenarios
- Income Tax on 5 LPA Salary (Old vs New Regime)
- Income Tax on 6 LPA Salary (Old vs New Regime)
- Income Tax on 7 LPA Salary (Old vs New Regime)
- Income Tax on 8 LPA Salary (Old vs New Regime)
- Income Tax on 9 LPA Salary (Old vs New Regime)
- Income Tax on 10 LPA Salary (Old vs New Regime)
- Income Tax on 12 LPA Salary (Old vs New Regime)
- Income Tax on 15 LPA Salary (Old vs New Regime)
- Income Tax on 18 LPA Salary (Old vs New Regime)
- Income Tax on 20 LPA Salary (Old vs New Regime)
- Income Tax on 25 LPA Salary (Old vs New Regime)
- Income Tax on 30 LPA Salary (Old vs New Regime)
- Income Tax on 35 LPA Salary (Old vs New Regime)
- Income Tax on 40 LPA Salary (Old vs New Regime)
- Income Tax on 50 LPA Salary (Old vs New Regime)
What Affects Your Tax Liability?
Key Factors
- Gross Income: Your total salary before any deductions
- Standard Deduction: ₹75,000 for salaried under new regime (₹50,000 under old regime)
- 80C Investments: Up to ₹1.5 lakh in old regime (not available in new regime)
- HRA & Other Deductions: Available only in old regime
- Tax Regime Choice: Can be changed every financial year
- Rebate u/s 87A: Available in new regime for income up to ₹12 lakh (₹12.75 lakh for salaried with standard deduction)
Frequently Asked Questions
Which tax regime is better for me?
Compare your tax under both regimes using your actual deductions. The break-even point is roughly ₹3.75 lakh in deductions - below that, the new regime wins; above it, the old regime is cheaper. For incomes up to ₹12 lakh, the section 87A rebate makes the new regime tax-free regardless of deductions.
Which financial year do these scenarios use?
The calculations reflect FY 2024–25 / AY 2025–26 slabs and rules: ₹75,000 standard deduction in the new regime, ₹50,000 in old, the expanded 87A rebate up to ₹12.75 lakh (salaried) in the new regime, and current cess at 4%. Surcharge applies above ₹50 lakh. Capital gains and other special-rate incomes are not included in these salary-tax scenarios.
Can I switch regimes every year?
Salaried employees with no business income can switch between old and new regime each financial year while filing ITR. Those with business or professional income can switch only once in a lifetime back to old regime after opting for new. From FY 2023–24, the new regime is the default - you must explicitly opt for old in Form 10-IEA.
What deductions are still allowed in the new regime?
The new regime allows: standard deduction ₹75,000, employer NPS contribution under 80CCD(2) up to 14% of basic, transport allowance for the disabled, and a few niche items. It disallows 80C (PPF, ELSS, life insurance), 80D (health insurance), HRA, LTA, home loan interest on self-occupied property, and most other Chapter VI-A deductions.
Calculate Your Exact Tax Liability
Your tax situation is unique to your income and deductions. Use our calculator to compare both regimes for your specific case.
Use Tax Calculator