With the beginning of Financial Year 2024-25, a major change in income tax rules has stirred confusion among taxpayers. The government, while giving a huge relief to the salaried class, has made income up to ₹12 lakh completely tax-free under the new tax regime. But those who have long been enjoying deductions under the old regime are now wondering — should they switch or stick?

Let’s break down both regimes and help you decide which one suits your financial planning better.

🔍 What’s New in FY 2024-25?

• Income up to ₹12 lakh is now tax-free under the new default regime.

• Standard Deduction of ₹50,000 is now allowed in the new regime.

• Taxpayers can opt for the old regime, but they need to make an active choice while filing ITR.

📊 Income Tax Slabs – Old vs New Regime (FY 2024-25)

✅ New Regime Tax Slabs:

💡 Note: If your income is up to ₹12 lakh, you don’t have to pay any tax under the new regime.

✅ Old Regime Tax Slabs:

📉 Key Benefits of the Old Regime

• ₹1.5 Lakh deduction under Section 80C (LIC, PPF, ELSS, etc.)

• ₹50,000 additional under NPS – 80CCD(1B)

• ₹25,000 to ₹50,000 under 80D (Medical Insurance)

• HRA, Home Loan interest, and other deductions

🤔 Which One Should You Choose?

🔸 If your income is ₹12 lakh or less

✅ Go with the New Regime. You’ll pay zero tax without doing any paperwork or investments.

🔸 If your income is above ₹12 lakh and you invest wisely

✅ Old Regime could save you more, thanks to multiple exemptions.

🧮 Example Comparison

Salary: ₹15 Lakh
Deductions (Old Regime): ₹2.75 Lakh
Taxable Income (Old): ₹12.25 Lakh
Taxable Income (New): ₹15 Lakh – ₹50K (Standard Deduction) = ₹14.5 Lakh
➡️ Old Regime may still be more beneficial

📌 Final Verdict