Correction: this article previously labeled historical slabs and a ₹7 lakh rebate as FY2025-26. The calculator actually retains a HISTORICAL FY2024-25 (AY2025-26) model. The original URL remains available, but neither this model nor its results should be treated as FY2025-26 or later tax advice.
For comparison, the Income Tax Department's AY2026-27 guidance for FY2025-26 lists new-regime slabs beginning with nil tax up to ₹4 lakh and a rebate of up to ₹60,000 for eligible resident individuals with taxable income up to ₹12 lakh. Those later rules are not implemented in our calculator.
The core difference
- New Regime — lower slab rates, but you give up almost all deductions (80C, HRA, LTA, etc.). Simpler, and the default since FY 2023-24.
- Old Regime — higher slab rates, but you can claim deductions that reduce your taxable income. Rewards people who invest and pay rent.
Historical New Regime slabs (FY2024-25 model)
- Up to ₹3,00,000 — Nil
- ₹3,00,001 to ₹7,00,000 — 5%
- ₹7,00,001 to ₹10,00,000 — 10%
- ₹10,00,001 to ₹12,00,000 — 15%
- ₹12,00,001 to ₹15,00,000 — 20%
- Above ₹15,00,000 — 30%
The historical model subtracts a ₹75,000 salary standard deduction and applies a rebate at taxable income up to ₹7 lakh. That is a modeled threshold, not a blanket exemption for all income or taxpayers. The model does not assess residency, special-rate income, surcharge or age-specific old-regime slabs.
When the Old Regime wins
The old regime can produce a lower liability when eligible deductions offset its slab rates, but there is no universal deduction break-even. Income, age, deduction eligibility and the applicable year all matter. Items to check include:
- ₹1,50,000 under Section 80C (PPF, ELSS, EPF, life insurance, home-loan principal)
- Eligible HRA exemption based on rent, salary and applicable city rules
- ₹50,000 NPS under 80CCD(1B)
- Home-loan interest up to ₹2,00,000 under Section 24
- Health insurance premium under 80D
Compare the right year, not a rule of thumb
First establish the financial year and eligible income and deductions. Then compare both regimes under those rules; a historical modeled difference is not guaranteed current-year savings.
Use this calculator to understand the historical slab comparison only. For a filing decision, check government guidance for your year and consult a qualified tax professional where needed.
Explore the historical FY2024-25 regime comparison
Open the Historical Tax CalculatorThings people get wrong
- Confusing CTC with taxable income — employer costs and payroll components require separate treatment.
- Assuming either regime always wins — deduction amounts alone do not establish the answer.
- Ignoring model omissions — surcharge, special-rate income and age-specific slabs can materially affect liability.
For official historical documents, see the Union Budget 2024-25 archive. Keep historical references separate from the financial-year rules that apply to your return.
A LITTLE MORE CLARITY
Frequently asked questions
Does this calculator compare FY2025-26 regimes?
No. It retains a historical FY2024-25 model. FY2025-26 new-regime slabs and rebate thresholds differ. Use the official Income Tax Department guidance for the applicable year; there is no universal deduction break-even.
Can I switch between regimes every year?
The Income Tax Department allows non-business taxpayers to exercise the choice each year in a return filed by the applicable due date. Business or professional income has additional form requirements and switching restrictions.
What does the ₹7 lakh rebate threshold refer to?
It is the taxable-income threshold in the historical FY2024-25 model, not FY2025-26. Rebate eligibility and special-rate income require separate checks. The later FY2025-26 guidance lists a ₹12 lakh threshold for eligible resident individuals.