New regime uses only ₹75K standard deduction. Old regime uses all deductions you enter.
Enter your salary on the left and hit Compare Both Regimes
The new regime has more slabs but lower rates. The old regime has fewer slabs but allows deductions that reduce your taxable income before tax is applied.
The new regime is better for most salaried employees earning up to ₹12.75 lakh, since they pay zero tax regardless of deductions. For higher incomes, the new regime wins when your total deductions in the old regime are low — typically below ₹3–4 lakh annually. If you don't have a home loan, don't pay high rent, and haven't maxed out 80C, the new regime almost certainly saves you more.
The old regime remains beneficial if you have a large home loan (Section 24, up to ₹2 lakh deduction), significant HRA exemption in a metro city, and maximum 80C investments of ₹1.5 lakh. For incomes above ₹15 lakh with all deductions maximised, the old regime can still save ₹50,000–₹1,00,000 in annual tax.
From FY 2024-25, the standard deduction of ₹75,000 is available in both regimes. No proof required — it's automatic. This replaced the earlier ₹50,000 limit and directly reduces your taxable income before any slab rate is applied.