New vs Old Tax Regime: How much you would pay after Budget 2024

It is important to note that the new tax regime offers tax-free income for anyone earning ₹7 lakh or less.

Choosing the tax regime that works for you depends on many factors, including your financial and tax-saving goals.

In 2020, the government introduced a new tax regime with fewer deductions compared to the old tax regime. The aim of introducing the new tax regime was to put more disposable income in taxpayers’ hands. The old regime continues to offer various deductions, helping taxpayers reduce their tax liability. Choosing between these two regimes can be confusing for taxpayers, especially around the investment declaration time.

Choosing the tax regime that works for you depends on many factors, including your financial and tax-saving goals. For some, the new tax regime may help save better, while for others, the old tax regime may be more suitable. The old tax regime, while offering deductions that reduce your tax liability, also helps inculcate a saving habit. The new tax regime, with fewer deductions, simplifies the tax-filing process while leaving you with more disposable income. The new tax regime may work better for people with lower incomes and fewer deductions. It is important to note that the new tax regime offers tax-free income for anyone earning Rs 7 lakh or less. The table below provides an idea of how much tax you would pay in various taxable income brackets.

Taxable Income Rs. 1 Lakh- Rs. 10 Lakh

Taxable Income	Nominal Tax Rate & Payable tax In 2024-25 (Old Regime)	Nominal Tax Rate &Payable tax In 2024-25 (New Regime)
₹ 1,00,000	0.0%	0.0%
₹ 2,00,000	0.0%	0.0%
₹ 3,00,000	0.0%	0.0%
₹ 4,00,000	0.0%	0.0%
₹ 5,00,000	0.0%	0.0%
₹ 6,00,000	₹ 33,800 (5.6%)	0.0%
₹ 7,00,000	₹ 54,600 (7.8%)	0.0%
₹ 8,00,000	₹ 75,400 (9.4%)	₹ 23,400 (2.9%)
₹ 9,00,000	₹ 96,200 (10.7%)	₹ 33,800 (3.7%)
₹ 10,00,000	₹ 1,17,000 (11.7%)	₹ 44,200 (4.42%)

Taxable Income Rs. 10 Lakh- Rs. 20 Lakh

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Taxable Income	Nominal Tax Rate & Payable tax In 2024-25 (Old Regime)	Nominal Tax Rate & Payable tax In 2024-25 (New Regime)
₹ 11,00,000	₹ 1,48,200 (13.5%)	₹ 55,900 (5.08%)
₹ 12,00,000	₹ 1,79,400 (15.0%)	₹ 71,500 (5.95%)
₹ 13,00,000	₹ 2,10,600 (16.2%)	₹ 88,400 (6.8%)
₹ 14,00,000	₹ 2,41,800 (17.3%)	₹ 1,09,200 (7.8%)
₹ 15,00,000	₹ 2,73,000 (18.2%)	₹ 1,30,000 (8.6%)
₹ 16,00,000	₹ 3,04,200 (19.0%)	₹ 1,53,400 (9.5%)
₹ 17,00,000	₹ 3,35,400 (19.7%)	₹ 1,84,600 (10.8%)
₹ 18,00,000	₹ 3,66,600 (20.4%)	₹ 2,15,800 (11.9%)
₹ 19,00,000	₹ 3,97,800 (20.9%)	₹ 2,47,000 (13%)
₹ 20,00,000	₹ 4,29,000 (21.5%)	₹ 2,78,200 (13.9%)