New regime slabs (FY 2024-25)

| Income Range | Tax Rate | |---|---| | Up to ₹3 lakh | Nil | | ₹3–7 lakh | 5% | | ₹7–10 lakh | 10% | | ₹10–12 lakh | 15% | | ₹12–15 lakh | 20% | | Above ₹15 lakh | 30% |

Standard deduction: ₹75,000 for salaried (from FY 2024-25). 87A rebate: Zero tax if total income ≤ ₹7 lakh.

Old regime slabs

| Income Range | Tax Rate | |---|---| | Up to ₹2.5 lakh | Nil | | ₹2.5–5 lakh | 5% | | ₹5–10 lakh | 20% | | Above ₹10 lakh | 30% |

Standard deduction: ₹50,000 for salaried. 87A rebate: Zero tax if total income ≤ ₹5 lakh.

Who should choose which regime?

New regime is better if:

  • Total deductions are below ₹3.75 lakh
  • You can't claim HRA (own house or employer-provided)
  • You're in the ₹7–10 lakh income range (significant benefit from lower slabs)

Old regime is better if:

  • Large HRA + 80C + 80D + NPS + home loan interest deductions
  • Total deductions exceeding ₹4–5 lakh
  • Income above ₹15 lakh with substantial deductions

Employers and regime selection

From FY 2023-24, new regime is the default. Tell your employer if you want old regime for TDS purposes. You can switch regimes when filing your ITR (except if you have business income).