Old vs New Regime Comparison Chart for FY 2024-25
- Asharam Swain
- Dec 15, 2025
- 9 min read
Choosing between the old and new income tax regimes for FY 2024-25 depends on tax slabs, available deductions, and overall taxable income. The new regime offers lower slab rates with limited deductions, while the old regime retains popular exemptions like 80C, 80D, HRA, LTA, home loan interest, and standard deduction. Senior citizens also receive higher exemption thresholds under the old structure. The comparison chart for FY 2024-25 helps taxpayers understand differences in rates, suitability, and filing requirements. Digital platforms such as TaxBuddy play a supportive role by computing tax liability under both regimes.
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Old vs New Regime Comparison Chart for FY 2024-25
The choice between the two regimes for FY 2024-25 continues to hinge on tax slab differences, deduction availability, and individual financial situations. The old regime offers higher tax rates but rewards extensive tax planning, while the new regime simplifies the system with lower slabs but limited deductions. The comparison chart highlights major distinctions such as slab structures, deduction rules, eligibility criteria, and rebate limits, giving a clear view of how each regime affects overall tax liability. Many taxpayers use tools on platforms like TaxBuddy to compute and compare tax payable under both structures before choosing.
Understanding the Key Differences Between Old and New Tax Regimes
The old regime retains the traditional tax structure with multiple deductions and exemptions, making it suitable for individuals who have significant investments or planned expenses under Sections 80C, 80D, HRA, LTA, home loan interest, and more. The new regime prioritises simplicity by reducing slab rates and removing most deductions, ensuring quick calculations without relying heavily on tax-saving instruments. Another major distinction relates to age-based benefits: senior and super-senior citizens receive higher basic exemption limits under the old regime, while the new regime applies uniform slabs to all taxpayers regardless of age. This shift has made the new structure more predictable but less flexible compared to the old regime.
Tax Slabs Under the Old vs New Regime for FY 2024-25
The slab rates in the two regimes follow different patterns. Under the old regime, slab rates begin at ₹2.5 lakh and progress to 5%, 20%, and 30%, with additional relief for senior citizens whose basic exemption limits rise to ₹3 lakh or ₹5 lakh depending on age. The new regime follows a broader slab structure starting with a nil rate up to ₹3 lakh, followed by 5%, 10%, 15%, 20%, and 30% slabs. The new structure also provides a higher rebate limit, effectively making income up to ₹7 lakh tax-free after applying Section 115BAC rebate. The absence of age-based slabs means all individuals are assessed uniformly under the new regime.
Are Deductions Allowed in the New Tax Regime?
The new regime restricts most popular deductions and exemptions to keep the calculation process streamlined. Traditional benefits such as Section 80C, 80D, HRA, LTA, home loan interest, and most allowances cannot be claimed. Only selective deductions such as employer contributions to NPS (Section 80CCD(2)), EPF contributions mandated by the employer, and standard rebate benefits continue to be available. This regime is therefore commonly preferred by individuals who either do not invest extensively in tax-saving products or have income structures that naturally limit their deduction eligibility.
How Deductions Work Under the Old Tax Regime
The old regime supports a wide range of deductions and exemptions, enabling taxpayers to reduce their taxable income significantly. Investments and expenses under Section 80C form the foundation, covering life insurance premiums, PF contributions, ELSS, tuition fees, and principal repayment on home loans. Additional deductions under Section 80D for health insurance, Section 24 for home loan interest, HRA exemptions, LTA benefits, and the standard deduction of ₹50,000 further reduce overall tax liability. This deduction-friendly structure is ideal for taxpayers who engage in planned savings, own homes, or receive allowances that qualify for tax relief.
Eligibility Rules for Choosing the Old vs New Tax Regime
All taxpayers, including individuals, professionals, and business owners, are eligible for the old regime. The new regime, however, applies only to individuals and Hindu Undivided Families (HUFs). From AY 2024-25, the new regime has been made the default option, and those who prefer the old structure must formally choose it while filing their ITR or by submitting Form 10-IEA. Business owners face additional restrictions, as they may be permitted to switch back to the old regime only once after opting out. Salaried taxpayers, however, retain the flexibility to change their regime annually while filing returns.
Age-Based Exemptions Under the Old vs New Regime
Age-based exemptions remain a significant distinguishing factor. Under the old regime, individuals aged 60 to 79 enjoy a basic exemption limit of ₹3 lakh, while those aged 80 or above receive an exemption up to ₹5 lakh. These higher thresholds substantially reduce the tax burden for older taxpayers with modest income. The new regime eliminates these distinctions and applies uniform slab rates to all taxpayers, regardless of age. While this simplifies the process, it does not offer the enhanced relief that senior citizens could otherwise claim under the old regime.
Rebate Differences Under Section 87A and Section 115BAC
Rebate provisions differ in both regimes. Under the old regime, Section 87A offers a maximum rebate of ₹12,500 for taxpayers whose taxable income does not exceed ₹5 lakh, effectively reducing their tax liability to zero. The new regime broadens this benefit by providing a rebate under Section 115BAC, offering up to ₹25,000, making income up to ₹7 lakh tax-free. This higher rebate threshold often results in the new regime being more favourable for individuals with income in the lower and middle income ranges.
Which Tax Regime Is Better for FY 2024-25?
Determining the better option depends entirely on income composition, deduction eligibility, and financial goals. Individuals with home loans, insurance investments, medical insurance payments, education fees, or eligible allowances typically benefit more from the old regime. Those without substantial deductions often save tax under the new regime due to its lower slab rates. Platforms like TaxBuddy offer tools that calculate tax liability under both regimes, making it easier to determine the more tax-efficient option for the year.
How to Choose the Right Tax Regime for FY 2024-25
The ideal approach involves calculating tax liability under both structures. Start by estimating total deductions and exemptions available under the old regime, then compare the post-deduction taxable income with the gross income under the new regime. Consider age-based benefits, home loan interest, and employer-provided allowances wherever applicable. The new regime generally suits individuals seeking simplified tax calculation and lower compliance requirements, while the old regime supports those who optimise savings through planned investments and eligible deductions. Using comparison tools or consulting professionals on platforms like TaxBuddy ensures clarity and precision during selection.
Conclusion
Choosing between the old and new income tax regimes for FY 2024-25 becomes far simpler when tax slabs, deduction eligibility, rebate limits, and financial structure are evaluated side by side. Both regimes offer unique advantages depending on how much tax planning is part of an individual’s financial routine. Tools and expert support available on platforms such as TaxBuddy can help streamline calculations and provide clarity while filing returns. For anyone looking for assistance in tax filing, it is highly recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.
FAQs
Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options? TaxBuddy offers both options to suit different levels of comfort and complexity. The self-filing plan is designed for individuals with straightforward salary income or minimal deductions, allowing them to upload Form 16 and file quickly with AI-assisted checks. The expert-assisted plan suits taxpayers with multiple income sources, home loans, capital gains, foreign income, presumptive taxation, or confusion about choosing between the old and new regimes. In this plan, a tax expert reviews the details, computes the best tax regime, applies eligible deductions, and ensures an error-free filing. This flexibility allows every taxpayer to pick a path that matches their financial situation.
Q2. Which is the best site to file ITR? The official income tax e-filing portal remains the primary platform for filing returns, but many users find it technical and time-consuming without guided help. Platforms like TaxBuddy provide a smoother experience through auto-pre-filled data, smart deduction recommendations, new vs old regime comparisons, and automated error checks. Individuals with complex income structures or those who prefer expert review often rely on TaxBuddy for greater accuracy and peace of mind. The best platform ultimately depends on whether the taxpayer prioritises speed, assistance, expert oversight, or simplicity.
Q3. Where to file an income tax return? An income tax return can be filed directly on the official portal at incometax.gov.in or through reliable private platforms like TaxBuddy. Traditional portal filing requires manual entry and thorough understanding of schedules, whereas platforms like TaxBuddy guide users step-by-step, ensure correct ITR selection, reconcile TDS, and generate comparisons between the old and new regimes. These tools simplify filing, reduce errors, and are especially useful for individuals who prefer a more intuitive and user-friendly process.
Q4. Is the new tax regime better for salaried individuals in FY 2024-25? The new regime may offer better results for salaried individuals who do not invest heavily in tax-saving options or receive allowances like HRA or LTA. With lower slab rates and minimal documentation requirements, it reduces the effort involved in tax planning. However, salaried individuals with home loans, insurance premiums, NPS contributions, children’s tuition fees, or substantial deductions often find the old regime more beneficial. Using a comparison tool—such as the one provided on TaxBuddy—helps assess which regime provides the lower tax outgo.
Q5. Can a taxpayer switch between the old and new tax regimes every year? Salaried individuals are allowed to switch between regimes each financial year at the time of filing their return. Business owners and professionals, however, face restrictions and may switch back to the old regime only once after opting out. Since the new regime is now the default from AY 2024-25, taxpayers who prefer the old structure must opt out through Form 10-IEA while filing their return. Understanding these switching rules ensures compliance and prevents filing complications later.
Q6. Are senior citizens eligible for extra benefits under the new tax regime? The new regime does not differentiate based on age, meaning senior and super-senior citizens receive the same slabs as all other taxpayers. In contrast, the old regime continues to offer higher exemption limits for those above 60 and 80 years of age. Senior citizens who rely on these higher basic exemption thresholds often find the old regime more favourable, especially when combined with deductions such as 80D for medical insurance and Section 24(b) for home loan interest.
Q7. Can HRA, LTA, and home loan interest be claimed under the new tax regime? Allowances such as HRA and LTA, along with home loan interest deductions under Section 24(b) for self-occupied property, are not allowed in the new regime. These benefits remain exclusive to the old regime. Individuals receiving such allowances from their employer or servicing a housing loan often save more under the old system, as it allows them to reduce their taxable income through various exemptions and deductions.
Q8. What is the rebate available in both regimes for FY 2024-25? The old regime allows a rebate under Section 87A for taxpayers with taxable income up to ₹5 lakh, fully eliminating tax liability up to a rebate amount of ₹12,500. The new regime extends this relief by offering a rebate for taxable income up to ₹7 lakh under Section 115BAC, reducing tax liability to zero up to a rebate of ₹25,000. This extended limit often makes the new regime more appealing for lower and middle-income groups.
Q9. How does one submit the option to choose a tax regime while filing the return? The selection is made directly inside the income tax return form during the filing process. Taxpayers choosing the old regime need to actively opt out of the default new structure by filing Form 10-IEA. Platforms like TaxBuddy automate this process and guide users on when and how the form needs to be filed, ensuring the correct regime is applied before submission.
Q10. Can a new taxpayer choose either tax regime in their first year? Yes, new taxpayers have full flexibility to pick either the old or the new regime in their first filing year. Since there are no prior returns to compare, the decision usually depends on whether the individual has deductions to claim. For those with little or no investments, the new regime often proves more suitable. Tools on TaxBuddy help new filers compare both options and choose the more efficient regime from the start.
Q11. Do taxpayers with business income face restrictions under the new regime? Taxpayers declaring business or professional income face stricter rules. Once they opt out of the default new regime to use the old one, they cannot freely switch back every year. They are allowed to move back to the old regime only once, and any further changes may not be permitted. Due to these limitations, business taxpayers often perform future tax planning before selecting a regime, and many consult professionals or use platforms like TaxBuddy for personalised assessments.
Q12. Does choosing the tax regime affect refund processing or compliance? The choice of regime does not directly affect refund timelines or compliance checks, but incorrect selection can lead to mismatches, defective returns, or disallowed deductions. Filing under the wrong regime may also prevent the taxpayer from claiming deductions or rebates they are entitled to. Ensuring accurate computation and regime selection at the filing stage helps maintain a smooth compliance journey. Many taxpayers rely on TaxBuddy’s guided process to avoid such errors and ensure accurate filing.
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