Deciding which tax regime to choose it completely depends upon individual financial circumstances.
Old Regime: If deductions are outweigh the benefits of lower tax rates in the new regime, sticking to the old regime might be more beneficial as it allows you to reduce your taxable income further.
New Regime: The new regime offers simplicity as it is relatively straightforward and has fewer deductions and exemptions, making tax filing easier and less time-consuming. If you prefer simplicity over maximizing tax savings, the new regime might be more suitable.
Note: Choose the right regime that minimizes your tax liability and aligns with your financial goals and preferences.
Tax rates for Old regime Vs new regime for the FY 2023-24
| Income | Old Tax Regime Rates | New Tax Regime Rates | ||
| Below 60 years | 60 - 80 years | Above 80 years | ||
| Rs.2.5 lakh - Rs.3 lakh | 5% | - | - | - |
| Rs.3 lakh - Rs. 5 lakh | 5% | 5% | - | 5% |
| Rs.5 lakh - Rs.6 lakh | 20% | 20% | 20% | 5% |
| Rs.6 lakh - Rs. 9 lakh | 20% | 20% | 20% | 10% |
| Rs.9 lakh - Rs.10 lakh | 20% | 20% | 20% | 15% |
| Rs.10 lakh - Rs.12 lakh | 30% | 30% | 30% | 15% |
| Rs.12 lakh - Rs.15 lakh | 30% | 30% | 30% | 20% |
| Rs.15 lakh | 30% | 30% | 30% | 30% |
Surcharge rate for Old regime Vs new regime for the FY 2023-24
| Income | Old Tax Regime Rates | New Tax Regime Rates |
| Less than Rs.50 lakh | - | - |
| Rs.50 lakh - Rs.1crore | 10% | 10% |
| Rs.1 crore - Rs.2 crore | 15% | 15% |
| Rs.2 crore - Rs.5 crore | 25% | 25% |
| More than Rs.5 crore | 37% | 25% |
Other Rates
| Additional Health and Education cess | 4% |
| Surcharge rate for an AOP consisting entirely of companies | 15% |
Deductions and Exemptions for Old regime Vs new regime for the FY 2023-24
| Deductions / Exemptions | Old Tax Regime Rates | New Tax Regime Rates |
| Investments made in the Notified Pension Scheme (Section 80CCD(2)) | Yes | yes |
| Housing Loan interest under Section 24b on let-out property | yes | yes |
| Housing Loan interest under Section 24b on self-occupied or vacant property | yes | No |
| Professional tax | yes | No |
| Standard deduction on salary | yes | Yes |
| Conveyance allowance | yes | yes |
| House Rent Allowance | yes | No |
| Leave Travel Allowance | yes | No |
| Section 80TTA / 80TTB | yes | No |
| Food & Beverages through Vouchers u/s 7(2)(viii) | yes | No |
| Deductions upto Rs. 1.5 lakh under Chapter VIA | yes | No |
| Medical Insurance u/s 80D | yes | No |
| Interest on home loan for self Occupied or vacant Property | yes | No |
| Disabled Individual - 80U | yes | No |
| Interest on education loan - 80E | yes | No |
| Interest on Electric vehicle loan - 80EEB | yes | No |
| Deduction on Family Pension Income | yes | yes |
| Gifts up to Rs 50,000 | yes | yes |
| Exemption on gratuity u/s 10(10) | yes | yes |
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