To help answer that, tools like the HR Calcy Old vs New Tax Regime Calculator provide personalized, side-by-side comparisons based on your income and deductions. This article breaks down the differences, benefits, and how HR Calcy’s calculator can help you make an informed decision for your financial year.
???? What is the Old Tax Regime?
The Old Tax Regime is the traditional tax system where taxpayers can reduce their taxable income by claiming a variety of deductions and exemptions such as:
House Rent Allowance (HRA)
Leave Travel Allowance (LTA)
Standard Deduction of ₹50,000
Deductions under:
Section 80C (PF, ELSS, LIC, etc.)
Section 80D (Medical Insurance)
Section 80E (Education Loan Interest)
Section 24(b) (Home Loan Interest)
This regime is ideal for taxpayers who make full use of tax-saving instruments and have qualifying expenses.
???? What is the New Tax Regime?
Introduced in Budget 2020, the New Tax Regime offers reduced tax rates but eliminates most deductions and exemptions. This is meant to simplify tax filing and benefit individuals with straightforward finances who don’t invest heavily in tax-saving schemes.
Here’s a look at the current (FY 2023-24 onwards) New Tax Slabs:
Income Range Tax Rate
Up to ₹3 lakh 0%
₹3 – ₹6 lakh 5%
₹6 – ₹9 lakh 10%
₹9 – ₹12 lakh 15%
₹12 – ₹15 lakh 20%
Above ₹15 lakh 30%
???? Note: Standard deduction of ₹75,000 is available under the new regime from FY 2023-24 onwards.
???? Key Differences at a Glance
Feature Old Regime New Regime
Tax Rates Higher Lower
Deductions & Exemptions Available Mostly removed
HRA, LTA, 80C, 80D Can be claimed Not allowed
Standard Deduction ₹50,000 ₹75,000 (from FY 2023-24)
Complexity Higher (requires planning) Lower (simplified)
Best For Investors & salaried with expenses Non-investors with high income
????️ How HR Calcy’s Calculator Makes Your Choice Easier
The HR Calcy Old vs New Tax Regime Calculator is a user-friendly tool built to help individuals accurately compare their tax liabilities under both systems. Whether you're salaried, self-employed, or a pensioner, the calculator provides real-time results based on your inputs.
???? Key Features:
Detailed Input Options:
Gross salary/income
Section 10 exemptions (HRA, etc.)
Professional tax
Deductions under 80C, 80D, 80E, and more
Automatic Standard Deduction:
₹50,000 under the old regime
₹75,000 under the new regime (for FY 2023-24 onward)
Tax Breakdown:
Taxable income
Tax before surcharge
Applicable surcharge
Tax after surcharge
Cess and total tax liability
Rebate under Section 87A (if applicable)
Multi-Year & Category Support:
Supports financial years from 2022-23 to 2025-26
Payee types: Male, Female, Senior Citizen, Very Senior Citizen
???? Step-by-Step Guide to Use HR Calcy Tax Calculator
Go to the Calculator
➡️ Visit HR Calcy’s Old vs New Tax Regime Calculator
Select Financial Year & Payee Type
Choose the year and category that applies to you.
Enter Your Income Details
Include gross income and eligible exemptions.
Add Deductions
Provide values for 80C, 80D, 80E, HRA, etc.
Click Calculate
Instantly see a side-by-side comparison of your tax liabilities under both regimes.
???? Who Should Opt for Which Regime?
✔️ Opt for the Old Regime if:
You have home loans, health insurance, and make investments in PPF, NPS, or ELSS.
You claim HRA and other exemptions.
Your total deductions are ₹2.5 lakh or more.
✔️ Opt for the New Regime if:
You don’t claim many deductions.
You want a simplified, paperless filing process.
You have a higher salary but fewer expenses.
???? Real-World Example:
Imagine Ramesh earns ₹12 lakh/year.
He invests ₹1.5 lakh in 80C, pays ₹25,000 for insurance Old vs New Tax Regime Calculator (80D), and ₹20,000 as professional tax.
Under the old regime, he saves taxes with deductions.
Under the new regime, no deductions are available—but tax rates are lower.
???? HR Calcy’s calculator helps him instantly see which route saves more tax, with a detailed comparison.
???? Conclusion: Make an Informed Choice with HR Calcy
In a landscape of changing tax laws and multiple options, HR Calcy’s Old vs New Tax Regime Calculator stands out as a trustworthy and efficient tool to help taxpayers make smart, data-driven decisions. Whether you're looking to save the most on taxes or simplify your tax filing, this calculator ensures transparency and clarity.
???? Standard Deduction Try it now: HR Calcy Old vs New Tax Regime Calculator
