Old vs New Tax Regime: Detailed Comparison with ₹8L, ₹12L, ₹15L & ₹20L Salary Examples (Budget 2024 Slabs)
Compare Indian Old vs New Tax Regime (Section 115BAC revised) for FY 2024-25 & 2025-26. Salary-wise worked examples for ₹8L, ₹12L, ₹15L, and ₹20L CTC with ₹75k standard deduction.
Key Budget 2024 Revisions to the New Tax Regime
In the Union Budget, the Finance Ministry revised the tax structure under Section 115BAC (the default New Tax Regime), widening slab brackets and enhancing the standard deduction for salaried individuals from ₹50,000 to ₹75,000.
Simultaneously, the family pension deduction was increased from ₹15,000 to ₹25,000. These changes make the New Tax Regime overwhelmingly advantageous for lower and middle-income earners with limited deductions, while high earners with large home loans and HRA exemptions still benefit from the Old Tax Regime.
New vs Old Tax Slab Rate Comparison
| Income Bracket | New Regime (Section 115BAC) | Old Tax Regime |
|---|---|---|
| Up to ₹2,50,000 | NIL (0%) | NIL (0%) |
| ₹2,50,001 – ₹3,00,000 | NIL (0%) | 5% |
| ₹3,00,001 – ₹5,00,000 | 5% | 5% |
| ₹5,00,001 – ₹7,00,000 | 5% | 20% |
| ₹7,00,001 – ₹10,00,000 | 10% | 20% |
| ₹10,00,001 – ₹12,00,000 | 15% | 30% |
| ₹12,00,001 – ₹15,00,000 | 20% | 30% |
| Above ₹15,00,000 | 30% | 30% |
The ₹75,000 Standard Deduction & Section 87A Rebate
Under the New Tax Regime, every salaried employee receives a flat ₹75,000 Standard Deduction without presenting any investment receipts or bills.
Furthermore, under Section 87A:
- New Regime: If taxable income does not exceed ₹7,00,000, total tax payable is zero (full 100% rebate up to ₹25,000). With the ₹75,000 standard deduction, a salaried individual earning up to ₹7,75,000 pays ZERO income tax!
- Old Regime: Section 87A rebate is capped at ₹12,500 for taxable income up to only ₹5,00,000.
Case Study 1: ₹8,00,000 Annual Salary
Assumptions: Salaried employee, Basic salary ₹4,00,000, 80C investment ₹1,50,000, Health insurance (80D) ₹25,000.
- Gross Income: ₹8,00,000
- Standard Deduction: -₹75,000
- Taxable Income: ₹7,25,000
- Tax Slabs: ₹3L-₹7L (5% = ₹20,000) + ₹7L-₹7.25L (10% = ₹2,500) = ₹22,500
- Health & Edu Cess (4%): ₹900
- Total Tax: ₹23,400
- Gross Income: ₹8,00,000
- Deductions: Standard (₹50k) + 80C (₹1.5L) + 80D (₹25k) = -₹2,25,000
- Taxable Income: ₹5,75,000
- Tax Slabs: ₹2.5L-₹5L (₹12,500) + ₹5L-₹5.75L (20% = ₹15,000) = ₹27,500
- Cess (4%): ₹1,100
- Total Tax: ₹28,600
Case Study 2: ₹12,00,000 Annual Salary
Assumptions: 80C ₹1.5L, 80D ₹25k, HRA exemption ₹1,20,000. Total Old Regime Deductions = ₹3,45,000 (including ₹50k std ded).
Taxable = ₹11,25,000. Tax = ₹20,000 + ₹30,000 + ₹18,750 = ₹68,750 + 4% cess = ₹71,500
Taxable = ₹8,55,000. Tax = ₹12,500 + ₹71,000 = ₹83,500 + 4% cess = ₹86,840
Case Study 3: ₹15,00,000 Annual Salary
Assumptions: 80C ₹1.5L, 80D ₹50k (self + parents), HRA ₹1.8L, Home Loan Interest (Sec 24b) ₹2,00,000. Total Deductions = ₹6,30,000 (with std ded).
Taxable = ₹14,25,000. Total Tax = ₹1,30,000 (incl. cess)
Taxable = ₹8,70,000. Total Tax = ₹89,960 (incl. cess)
Case Study 4: ₹20,00,000 Annual Salary
At ₹20 Lakhs salary, unless your total Old Regime deductions exceed ₹3,75,000, the New Tax Regime results in lower tax liability due to its smoother 10%, 15%, and 20% intermediate slab rates compared to the harsh 30% jump above ₹10 Lakhs in the Old Regime.
The Breakeven Deduction Point: When Does Old Regime Win?
Here is the golden rule:
Summary Checklist: Which Regime Should You Pick?
Calculate your exact numbers on our SolveKits Tax Regime Calculator before submitting your investment declaration to your employer’s HR portal.
🏛️ Official Statutory Sources & Regulatory Citations
All rules, dimensions, and financial slabs in this guide have been verified against official publications:
Written by Ananya Deshmukh, CA
Chartered Accountant & Direct Tax Consultant
Practicing Chartered Accountant specializing in Indian personal taxation, Section 115BAC compliance, salary structuring, and corporate tax advisory.