Old vs New regime comparator

There is no universally better regime. The answer depends entirely on how much you can actually deduct — and most people overestimate that figure.

Old vs New regime comparator

Side-by-side tax under both regimes for the same gross income.

Note. Regime rules and slabs change by Budget. Verify against the current Finance Act before electing.

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How it is calculated

1

Compute tax under the new regime — lower slab rates, but almost no deductions.

2

Compute tax under the old regime — higher rates, but with HRA, 80C, 80D, home loan interest and the rest.

3

Compare the two totals. The break-even is a level of deductions, not a level of income.

Worked example

Broadly, the more you genuinely claim — rent in a metro, a home loan, a full 80C, medical premiums — the more likely the old regime wins. Without those, the new regime usually costs less.

What to watch for

Frequently asked questions

Which regime is better?

Whichever produces the lower tax on your actual numbers. Run both. The instinct to pick the one with lower headline rates is what leads people wrong.

Can I switch every year?

If you are salaried without business income, yes — you make the choice when filing. With business income the rules are far more restrictive.

More Statutory & Tax calculators

There is an easier way to do this each month.

Garuda HR looks after payroll, attendance, leave and statutory compliance for Indian teams — the same arithmetic, run for you every month, with a full audit trail. We would be glad to show you around.