While the new tax regime is now the default, the old tax regime remains an option for those who prefer to claim various deductions and exemptions. Here’s a look at how taxation works under the old system for FY 2024-25.
📊 Old Regime Tax Slabs for FY 2024-25
Applicable to individuals below 60 years of age:
| Income Range (₹) | Tax Rate |
|---|---|
| 0 – 2,50,000 | Nil |
| 2,50,001 – 5,00,000 | 5% |
| 5,00,001 – 10,00,000 | 20% |
| Above 10,00,000 | 30% |
💡 Deductions and Exemptions Available
The old regime allows taxpayers to reduce their taxable income by claiming various deductions, including:
- Section 80C – Up to ₹1.5 lakh (PF, ELSS, LIC, PPF, etc.)
- Section 80D – Medical insurance premiums
- HRA (House Rent Allowance)
- LTA (Leave Travel Allowance)
- Interest on home loan (Section 24b)
- Standard Deduction (₹50,000)
💰 Tax Liability Examples (Old Regime)
Assuming the taxpayer uses common deductions (₹1.5L under 80C and ₹50,000 standard deduction):
| Gross Income (₹) | Taxable Income (₹) | Tax Before Cess (₹) | Cess (4%) (₹) | Total Tax (₹) |
|---|---|---|---|---|
| ₹5,00,000 | ₹3,00,000 | ₹2,500 (Rebate u/s 87A) | ₹0 | ₹0 |
| ₹7,50,000 | ₹5,50,000 | ₹15,000 | ₹600 | ₹15,600 |
| ₹10,00,000 | ₹8,00,000 | ₹85,000 | ₹3,400 | ₹88,400 |
| ₹12,50,000 | ₹10,50,000 | ₹1,35,000 | ₹5,400 | ₹1,40,400 |
| ₹15,00,000 | ₹13,00,000 | ₹2,10,000 | ₹8,400 | ₹2,18,400 |
| ₹20,00,000 | ₹18,00,000 | ₹3,60,000 | ₹14,400 | ₹3,74,400 |
| ₹30,00,000 | ₹28,00,000 | ₹6,60,000 | ₹26,400 | ₹6,86,400 |
| ₹50,00,000 | ₹48,00,000 | ₹12,60,000 | ₹50,400 | ₹13,10,400 |
| ₹1,00,00,000 | ₹98,00,000 | ₹27,60,000 | ₹1,10,400 | ₹28,70,400 |
⚠️ Additional Notes
- Rebate under Section 87A applies if net taxable income is up to ₹5,00,000.
- A 4% health & education cess is added to the total tax.
- Surcharge applicable:
- ₹50 lakh – ₹1 crore: 10%
- ₹1 crore – ₹2 crore: 15%
- ₹2 crore – ₹5 crore: 25%
- Above ₹5 crore: 37%
✅ Who Should Choose the Old Regime?
You may benefit more from the old regime if:
- You invest in tax-saving options under 80C
- You claim HRA, LTA, home loan interest, or medical deductions
- Your deductions exceed ₹3 lakh or more
Hi, I’m Abhinay Gupta, I am a motivated digital marketer and a content creator with an experience of more than a year. By qualification, I m a BCA graduate and founded Salary Guy intending to keep people updated with all the latest financial, career, politics happening around them.
