Compare Old vs New regime income tax for Central Govt salaried employees. All deductions: 80C, 80D, NPS, HRA exemption included.
Enter your salary and deductions to compare Old vs New tax regime.
| Item | Old Regime | New Regime |
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See exactly which regime saves you more tax based on your actual salary, HRA, 80C, NPS, and medical insurance premium.
Includes standard deduction (Rs.75,000 New / Rs.50,000 Old), employer NPS 80CCD(2) exemption, and all common govt employee deductions.
Updated with Finance Act 2025 slab rates. New regime now has zero tax up to Rs.12 lakh income (with rebate under Section 87A).
Since FY 2020-21, taxpayers can choose between the Old Tax Regime (with deductions) and New Tax Regime (lower slab rates, fewer deductions). From FY 2023-24, the New Regime became the default, but you can opt out.
Standard deduction of Rs.75,000 is available under New Regime. Section 87A rebate makes net tax nil for income up to Rs.12 lakh under the New Regime.
Standard deduction Rs.50,000, full 80C/80D/80CCD deductions, and HRA exemption available in the Old Regime.
Employees with significant deductions — HRA exemption, 80C at Rs.1.5L, NPS 80CCD(1B) Rs.50,000, and 80D health insurance — typically save more tax under the Old Regime. Those with minimal deductions or income below Rs.12 lakh benefit from the New Regime's lower slabs and 87A rebate.
Salaried employees (without business income) can switch between regimes every year at the time of filing their ITR. However, you must inform your employer at the start of the financial year which regime to use for TDS computation, as employer cannot adjust mid-year.
No. Under Section 80CCD(2), the employer's NPS contribution is fully deductible from taxable income in both Old and New regimes — with no upper limit cap. For Central Govt employees, the 14% employer NPS contribution is entirely tax-free, making the effective tax benefit on NPS very significant.