New Tax Regime vs Old Regime: Which One to Choose in 2024?

Budget 2023 made the new tax regime the default option. But is it better for you? Let's break it down.

Old Tax Regime - Tax Slabs

Up to ₹2.5 lakhs: Nil

₹2.5L - ₹5L: 5%

₹5L - ₹10L: 20%

Above ₹10L: 30%

**Plus:** All deductions under 80C, 80D, HRA, etc.

New Tax Regime - Tax Slabs (2024)

Up to ₹3 lakhs: Nil

₹3L - ₹6L: 5%

₹6L - ₹9L: 10%

₹9L - ₹12L: 15%

₹12L - ₹15L: 20%

Above ₹15L: 30%

**Minus:** No deductions allowed (except standard deduction of ₹50,000 for salaried)

When to Choose Old Regime

Choose old if you:

Have significant investments in 80C (PPF, ELSS, etc.)

Pay substantial health insurance premiums

Claim HRA deductions

Have home loan interest payments

Typically invest more than ₹2.5 lakhs annually

**Example:** Income ₹10L, Investments ₹2L

**Old Regime:** Tax ≈ ₹75,000 (after deductions)

**New Regime:** Tax ≈ ₹90,000

**Savings: ₹15,000 with old regime**

When to Choose New Regime

Choose new if you:

Have minimal investments

Don't claim HRA

Have no home loan

Earn below ₹10 lakhs

Prefer simplicity over tax planning

**Example:** Income ₹8L, No investments

**Old Regime:** Tax ≈ ₹80,000

**New Regime:** Tax ≈ ₹60,000

**Savings: ₹20,000 with new regime**

Can You Switch?

**Salaried employees:** Can switch every year

**Business/Professional:** Can switch only once in lifetime

My Recommendation

Most salaried professionals with investments benefit from the old regime. However, if your income is under ₹10 lakhs and you don't invest much, the new regime saves you money.

**Not sure which one is right for you?** Let me calculate both scenarios for your specific situation and help you choose wisely.

New Tax Regime vs Old Regime: Which One to Choose in 2024?

New Tax Regime vs Old Regime: Which One to Choose in 2024?

Old Tax Regime - Tax Slabs

New Tax Regime - Tax Slabs (2024)

When to Choose Old Regime

When to Choose New Regime

Can You Switch?

My Recommendation

Need personalized tax advice?