Old vs New Tax Regime: A Complete Guide with HR Calcy’s Comparison Calculator

Old vs New Tax Regime: A Complete Guide with HR Calcy’s Comparison Calculator

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Choosing between the old and new income tax regimes in India can be a daunting task for many taxpayers. Each regime comes with its own benefits, conditions, and implications on your tax liability. Thankfully, tools like HR Calcy’s Old vs New Tax Regime Calculator offer a quick and accurate way to make an informed decision. In this article, we’ll explore the key differences between the two regimes, who should choose what, and how HR Calcy helps simplify this crucial financial decision.

???? What Are the Old and New Tax Regimes?

✅ Old Tax Regime

The Old Tax Regime allows taxpayers to reduce their taxable income by claiming various deductions and exemptions, such as:

House Rent Allowance (HRA)

Leave Travel Allowance (LTA)

Standard Deduction of ₹50,000

Deductions under Section 80C, 80D, 80E, and more

It’s beneficial for individuals who have significant investments and expenses that qualify for tax deductions.

✅ New Tax Regime

Introduced in FY 2020-21, the New Tax Regime offers reduced tax rates but removes most exemptions and deductions. This simplified tax structure is beneficial for those who do not invest heavily in tax-saving instruments.

Here’s a quick comparison of the tax slabs:

Income Range Old Regime (with deductions) New Regime (no deductions)

₹0 - ₹2.5 lakh Nil Nil
₹2.5 - ₹5 lakh 5% 5%
₹5 - ₹7.5 lakh 20% 10%
₹7.5 - ₹10 lakh 20% 15%
₹10 - ₹12.5 lakh 30% 20%
₹12.5 - ₹15 lakh 30% 25%
Above ₹15 lakh 30% 30%

???? Why Use HR Calcy’s Old vs New Tax Regime Calculator?

HR Calcy’s tax calculator is a powerful online tool designed to provide a side-by-side comparison of your tax liability Old vs New Tax Regime Calculator under both regimes.

Key Features:

Comprehensive Data Input: Enter gross income, HRA, standard deduction, professional tax, and deductions under 80C, 80D, etc.

Automatic Standard Deduction Application: ₹50,000 under the old regime and ₹75,000 under the new regime (as per FY 2023-24 changes).

Comparison Report: Displays tax before surcharge, after surcharge, cess, and Section 87A rebate (if applicable).

Support for Multiple Years & Payee Types: Calculate taxes for FY 2022-23 to 2025-26, including options for senior citizens and very senior citizens.

???? How to Use the Calculator?

Using the HR Calcy Old vs New Tax Regime Calculator is easy:

Visit the calculator: Old vs New Tax Regime Calculator – HR Calcy

Select Financial Year and your Payee Category (Male/Female/Senior Citizen).

Enter Gross Income and other relevant details.

Provide Exemptions and Deductions: HRA, professional tax, Section 80C investments, insurance premiums, education loan interest, etc.

Click Calculate – The tool will instantly show:

Taxable income under both regimes

Tax before and after surcharge

Total tax including health and education cess

Rebate under Section 87A (if eligible)

???? When Should You Choose Which Regime?

Choose Old Tax Regime if:

You have high deductions (over ₹3–4 lakhs)

You claim HRA and standard exemptions

You’ve taken a home loan and pay interest

You invest in tax-saving instruments (PPF, ELSS, NPS, etc.)

Choose New Tax Regime if:

You do not invest in 80C instruments

You want to avoid documentation and compliance

Your annual income is straightforward with few deductions

You're looking for lower tax rates with a simplified process

⚠️ Common Mistakes to Avoid

Ignoring 87A Rebate: Available for income up to ₹5 lakh under both regimes.

Incorrect HRA or Deduction Claims: Can skew the result. Use accurate numbers.

Forgetting Professional Tax or Standard click here Deduction: These reduce taxable income under the old regime.

Not Reviewing Tax Laws Yearly: Rates and benefits may change from one financial year to another.

✅ Final Thoughts

Choosing the right tax regime can significantly impact your annual savings. With the HR Calcy Old vs New Tax Regime Calculator, you can make an informed and accurate choice without the need for complex spreadsheets or tax consultation. It empowers taxpayers with transparency, clarity, and control over their financial future.

???? Ready to compare? Try the free calculator now:

???? https://hrcalcy.com/old-vs-new-tax-regime-calculator/