The July 2024 Budget introduced significant updates to the New Tax Regime, including a higher standard deduction of ₹75,000 and revised slabs. Use the table below to understand the calculation.
| Income Range | Tax Rate |
|---|---|
| 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% |
| Income Range | Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 to ₹5,00,000 | 5% |
| ₹5,00,001 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
The July 2024 Budget introduced a higher standard deduction of ₹75,000 (up from ₹50,000) for the New Tax Regime. It also revised the tax slabs to provide more savings for middle-income earners.
The choice depends on your deductions. If you have significant investments in 80C (LIC, PPF), 80D (Health Insurance), and Home Loan interest, the Old Regime might save you more. However, for those with fewer deductions, the New Regime often results in a lower tax liability due to its lower rates and higher rebate limit.
Under the New Tax Regime, individuals with a taxable income up to ₹7 Lakhs pay zero tax due to the 87A rebate. In the Old Regime, this limit is ₹5 Lakhs.
Our calculator follows the latest Finance Act guidelines. However, tax laws can be complex and subject to individual circumstances. We recommend consulting a chartered accountant (CA) for official tax filing and planning.