India’s income tax system — with two tax regimes, the old regime and the new regime — can be quite a challenge to understand. One gives you lots of deductions, and the other condenses everything into an easy-to-understand form. However, which one truly saves you more money in 2025? Well, which you will know as we break it down further with the help of an old vs new tax regime calculator for real-life examples and insights practically tailored for both salaried professionals, freelancers & small business owners alike.
Table of Contents
Understanding the Basics: Old vs New Tax Regime
Now, from FY 2020-21 onwards, taxpayers in India have been given an option to elect the following:
- Old Tax Regime: Offers exemptions like HRA, standard deduction, 80C, 80D etc
- New Tax Stats: Lower tax rates, but very few exemptions or deductions.
In Budget 2023 and 2024, the government even forced more people into this regime, and made it default from FY 2023-24.
However, the debate at that point in time is “Old regime vs new regime — which one is better for me?” The income tax calculator old vs new comes in at that juncture.
Income Tax Slabs for FY 2025-26
New Tax Regime (Default):
| Income Slab | Tax Rate |
| ₹0 – ₹3,00,000 | 0% |
| ₹3,00,001 – ₹6,00,000 | 5% |
| ₹6,00,001 – ₹9,00,000 | 10% |
| ₹9,00,001 – ₹12,00,000 | 15% |
| ₹12,00,001 – ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Note: Rebate under section 87A is available for income up to ₹7 lakh, making tax liability zero under new regime in many cases.
Old Tax Regime:
| Income Slab | Tax Rate |
| ₹0 – ₹2,50,000 | 0% |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Deductions like Section 80C (₹1.5L), 80D, HRA, LTA, Standard Deduction (₹50,000), and more are allowed.
Using the Old vs New Tax Regime Calculator in 2025
A proper old vs new tax regime calculator can help determine which option yields more savings. You’ll need to input:
- Annual income
- HRA received and rent paid
- Investments (PPF, ELSS, EPF, etc.)
- Medical insurance premiums
- Housing loan interest
- Education loan interest
- Other exemptions
After submitting your inputs, the income tax calculator old vs new instantly compares your liability under both regimes.
Example Scenario:
Let’s consider Riya, a salaried employee in Bengaluru with ₹12,00,000 annual income.
- HRA: ₹1,80,000
- 80C investments: ₹1,50,000
- 80D medical insurance: ₹25,000
- Standard Deduction: ₹50,000
Tax Liability under Old Regime:
Income = ₹12,00,000
Total Deductions = ₹3,25,000
Taxable Income = ₹8,75,000
Tax = ₹90,000 approx.
Tax Liability under New Regime:
No deductions
Tax on ₹12,00,000 = ₹1,05,000 approx.
Result from calculator: Old regime saves ₹15,000
Old vs New Tax Regime: Which One Should You Choose?
Here’s a simplified comparison to help guide your decision:
| Feature | Old Regime | New Regime |
| Tax Rates | Higher | Lower |
| Deductions (80C, 80D, etc.) | Allowed | Not allowed |
| Simplicity | Complex (requires proof) | Simple |
| Best for | High-savers, homeowners | Non-savers, young earners |
| Tax Filing | Time-consuming | Quick |
| Recommended for | Salaried with deductions | Freelancers, new joiners |
Best Old vs New Tax Regime Calculators to Use in 2025
Looking for a reliable calculator to check your best fit?
Top picks:
- Income Tax Dept’s Official Calculator – incometax.gov.in
- Cleartax Calculator
- Groww Tax Calculator
- BankBazaar Tax Comparison Tool
- ET Money Income Tax Calculator Old vs New
Make sure your calculator includes FY 2025-26 tax updates!
Tips to Maximize Tax Savings in 2025
- Track Your Deductions Early: Don’t wait till March to invest under 80C.
- Compare Annually: Your optimal regime can change year to year.
- Use HRA & Home Loan Smartly: These can tilt the scale toward the old regime.
- Avoid Auto-Selection: Employers may default you to new regime. Opt manually if needed.
- Plan According to Life Stage: Young, single professionals might benefit from new; families often benefit from old.
Key Budget 2025 Updates You Should Know
- Standard deduction of ₹50,000 now available under both regimes.
- Rebate limit increased to ₹7 lakh for new regime.
- Employer contributions to NPS now tax-deductible under new regime too.
These shifts make the old vs new tax regime calculator even more important for 2025.
When Can You Switch Between Old and New Regimes?
- Salaried Individuals: Can choose every financial year while filing ITR.
- Business Owners: Can switch only once. After opting out of new regime, can’t return.
Real-Life Examples Using Income Tax Calculator Old vs New
Example 1: Salaried Employee with High Deductions
- Income: ₹15L
- Deductions: ₹4L
Old Regime Wins
Example 2: Freelancer with No Deductions
- Income: ₹12L
- Deductions: None
New Regime Wins
Example 3: Young Professional, Few Savings
- Income: ₹7L
- Deductions: ₹50K
New Regime Wins (Rebate under 87A)
Final Verdict: New Tax Regime vs Old — There’s No One-Size-Fits-All
Performance of the old Vs new Tax regime- It also matters how you plan your finances.
The smartest move in 2025? Check old vs new tax regime calculator before filing ITR Reevaluate it yearly depending on how much you make, your ways of life and deductions — including the amount you can spare.
We suggest you take out your Form 16, list down all the tax deductions available to you and run these numbers through an accurate Income Tax Calculator old vs new on CoinDCX News.
A tiny change such as this could save you thousands — and prevent many headaches during tax season.
FAQs: Old vs New Tax Regime (2025 Edition)
Key Differences Between Old Regime and New Tax Regime?
The old regime provides for deductions and exemptions; the new regime poses lower tax rates but no big deductions.
How can I find out in 2025 which tax regime is better suited for me?
There is No Mandatory Requirement: if you want to opt for New Regime. Here we have provide an old vs new tax regime calculator based on your income and your deductions, you can compare your tax liability under both options.
Whether I can go back to the old tax regime after opting for the new regime?
Answer: Yes, ITR is required to be filed annually so every year salaried individual can switch.
Standard Deduction currently available under both regimes?
True, for Asst Year 2023-24: std deduction ₹50,000 available in both the regimes.
Which Regime Is Better for Salaried Employees with Housing Loans?
The old tends to be home loan interest deduction (Section 24b).
So, does the new regime help the poor?
So yes, especially for those who earn less than ₹7 lakh as then there will be nil tax outgo since the rebate under 87A is going to take care of your tax liability.
Best old vs new tax regime CALCULATOR?
Or refer to government websites (income tax or Dept of revenue) as well, or reliable fintech platforms like Cleartax etc.
From FY 2025-26, ideally it should be done?
No, but it’s default. You can still manually select the old era.
So, which government is better for the freelancers?
Of course, the reverse is also true with the new regime as freelancers usually have lesser standard deductions.
What are the documents required to avail benefits of old regime?
You need to have proofs of all deductions you claim — investments, rent, insurance and the likes.