New vs Old Tax Regime (FY 2024-25): The Final Verdict

Budget 2024 made the New Regime the default tax option. But is it actually better for you? The answer depends on your investments.

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Compare both regimes instantly.

The New Regime (Default)

Philosophy: Lower tax rates, zero paperwork.

Pros: No need to invest in insurance or PPF just to save tax. Higher Standard Deduction (₹75,000). Tax-free up to ₹7 Lakhs.
Cons: You lose HRA, LTA, and Section 80C deductions.

The Old Regime

Philosophy: Incentivize savings and investments.

Pros: You can claim HRA (Rent), Home Loan Interest (up to 2L), and 80C (1.5L).
Cons: Higher tax slab rates. Complex paperwork.

Breakeven Point

Generally, if your total deductions (HRA + 80C + 80D) exceed ₹3.75 Lakhs, the Old Regime might save you more tax. Otherwise, the New Regime is usually better and simpler.