Which tax regime is better — old or new for FY 2024-25?

It depends on your deductions. New regime is better if you have few deductions. Old regime is better if you have high 80C (PPF, ELSS, LIC) + 80D + HRA. Rule of thumb: if your total deductions (80C + 80D + HRA + standard deduction) exceed ₹3.75 lakh, the old regime likely saves more tax. Below that, the new regime usually wins.

What are the new tax regime slabs for FY 2024-25?

New regime slabs (FY 2024-25): Up to ₹3L = 0%, ₹3L–7L = 5%, ₹7L–10L = 10%, ₹10L–12L = 15%, ₹12L–15L = 20%, Above ₹15L = 30%. Plus 4% health & education cess on tax. Rebate u/s 87A: zero tax for income up to ₹7L taxable. Standard deduction ₹75,000 (Budget 2024 increase from ₹50,000).

What is the income tax on ₹10 lakh salary?

New regime: Taxable income after ₹75K standard deduction = ₹9.25L. Tax = ₹0 (0–3L) + ₹20,000 (3–7L at 5%) + ₹22,500 (7–9.25L at 10%) = ₹42,500 + 4% cess = ₹44,200. Old regime (with ₹1.5L 80C + ₹25K 80D + ₹50K std ded): Taxable = ₹7.75L. Tax = ₹0 + ₹12,500 + ₹55,000 = ₹67,500 + cess = ₹70,200. New regime saves ₹26,000.

Is income tax in India high compared to other countries?

At ₹10L income: India effective rate ~4.4% (new regime) vs UK ~20%, US ~12%, Germany ~18%. India's top slab is 30% (above ₹15L new regime) but the effective rate for middle-income earners is much lower due to rebates and a wider 0% slab. India has no payroll tax equivalent to US FICA (6.2% social security) or UK National Insurance (8%).

India Income Tax Calculator — Old vs New Regime FY 2024-25

India Income Tax Calculator

Compare Old Regime vs New Regime side-by-side for FY 2024-25 (Assessment Year 2025-26). Enter your salary and deductions to instantly see which saves more.

QUICK ANSWER

New regime 2024-25 standard deduction: ₹75,000 (raised from ₹50,000 in Budget 2024). Zero tax up to ₹7L taxable income (87A rebate). New regime is better if total deductions < ₹3.75L. Old regime wins for those maximising 80C (₹1.5L) + 80D (₹25K) + HRA (₹1L+). At ₹12L salary with max deductions: old regime saves ~₹15,000.

Annual Income (₹)

80C Investments (max ₹1.5L) PPF, ELSS, LIC…

80D Health Insurance (max ₹25K)

HRA Exemption

India vs other countries — income tax comparison

Country	Tax on ₹10L equiv.	Effective rate	Social security / NI
🇮🇳 India (new regime)	₹44,200	4.4%	PF 12% (employer match)
🇺🇸 US ($12,000)	$1,316 federal	11%	7.65% FICA (SS + Medicare)
🇬🇧 UK (£9,500)	£720	7.6%	8% National Insurance
🇩🇪 Germany (€10K)	€1,620	16.2%	20.5% social security
🇸🇬 Singapore (S$13.4K)	S$360	2.7%	20% CPF (employee+employer)
🇦🇪 UAE	AED 0	0%	0% for expats

Note: Exchange rates approximate. India's rates are among the lowest for middle-income earners globally.