The income tax calculator new vs old comparison is essential before every financial year. New regime offers lower slab rates; old regime offers rich deductions. The right answer depends entirely on your specific income and deductions. Here are detailed scenarios at five income levels.
At ₹7 Lakh: New Regime Wins Clearly
| Regime | Taxable Income | Tax | After 4% cess |
|---|---|---|---|
| New Regime | ₹6,25,000 (after ₹75K std. dedn) | ₹0 (87A rebate) | ₹0 |
| Old Regime (80C ₹1.5L) | ₹5,00,000 | ₹12,500 (87A applies) | ₹0 |
At ₹7L, both regimes result in zero tax due to 87A rebate. But the new regime requires no investment to achieve this — a clear advantage for new earners.
At ₹10 Lakh: Depends on Deductions
| Deductions | Old Regime Tax | New Regime Tax | Save With |
|---|---|---|---|
| ₹50K (std. ded. only) | ₹1,17,000 | ₹54,600 | New (₹62,400) |
| ₹2L (std + 80C) | ₹72,800 | ₹54,600 | New (₹18,200) |
| ₹3.5L (80C+HRA+80D) | ₹41,600 | ₹54,600 | Old (₹13,000) |
At ₹15 Lakh: Old Regime Starts Winning with Good Deductions
| Deductions | Old Regime Tax | New Regime Tax | Save With |
|---|---|---|---|
| ₹50K only | ₹2,62,500 | ₹1,17,000 | New (₹1,45,500) |
| ₹3L (80C+std) | ₹1,72,500 | ₹1,17,000 | New (₹55,500) |
| ₹4.5L (80C+HRA+loan) | ₹97,500 | ₹1,17,000 | Old (₹19,500) |
| ₹6L (all deductions) | ₹67,500 | ₹1,17,000 | Old (₹49,500) |
At ₹20 Lakh and ₹30 Lakh
| Income | Total Deductions | Old Regime | New Regime | Winner |
|---|---|---|---|---|
| ₹20L | ₹2L | ₹3,51,000 | ₹2,73,000 | New |
| ₹20L | ₹5.5L | ₹1,56,000 | ₹2,73,000 | Old saves ₹1,17,000 |
| ₹30L | ₹3L | ₹5,46,000 | ₹5,46,000 | Tie |
| ₹30L | ₹7L | ₹3,78,000 | ₹5,46,000 | Old saves ₹1,68,000 |
The Break-Even Deduction Rule
At any income level, there's a deduction threshold where old and new regime tax are equal. Below this threshold, new regime wins; above it, old regime wins:
- ₹10L income → break-even at ~₹2.7L deductions
- ₹15L income → break-even at ~₹3.5L deductions
- ₹20L income → break-even at ~₹4.5L deductions
- ₹30L income → break-even at ~₹3L deductions (30% slab dominates)
Final verdict for FY 2025-26: The new regime wins for most young professionals with limited deductions. The old regime remains better for those with home loans, high HRA claims, and full 80C+80D utilisation — typically income above ₹12L with deductions over ₹4L.