Old vs New Tax Regime India: Complete Comparison
The Union Budget 2025 made the new tax regime the default for salaried individuals. But the old regime may still be better for those with high deductions. Here is the full comparison.
Old RegimevsNew RegimeIndia
| Factor | Old Regime | New Regime |
|---|---|---|
| Basic exemption | Up to ₹2.5L | Up to ₹4L |
| Standard deduction | ₹50,000 | ₹75,000 |
| Section 80C (₹1.5L) | Yes | No |
| Section 80D (health ins.) | Yes | No |
| HRA exemption | Yes | No |
| Home loan interest (24b) | Yes (up to ₹2L) | No |
| NPS deduction (80CCD) | Yes | Only employer contribution |
| Rebate (Section 87A) | Up to ₹5L income | Up to ₹12L income |
| Complexity | High (multiple deductions) | Simple (fewer exemptions) |
Our Verdict
Choose the new regime if: your income is ≤₹12L (zero tax due to rebate), or you do not claim significant deductions. Choose the old regime if: your total deductions (80C + HRA + home loan + 80D + NPS) exceed ₹4–5.5 lakhs depending on your income slab. Use our Income Tax Calculator to compute both and compare.