A comparison of tax slabs under the New and Old Regimes:
*The choice of taxability under the old regime or the new regime is optional. The option may be made in the following manner:
An individual/HUF not having any income from business/profession has an option to choose every year whether to pay tax under old tax regime or under new tax regime;
An individual/HUF having income from business/profession cannot change its option every year. Once the new regime is chosen, it will be applicable on subsequent years as well. However, a person may withdraw from the new regime, on the condition that he will not be eligible to opt back for it ever again, until his business/profession ceases to exist.
Following exemptions and deductions cannot be availed by an individual/HUF, if he opts to be taxed under the new regime.
Leave travel concession (LTC);
House rent allowance (HRA);
Some of the allowances such as helper and transport allowance;
Allowances to MPs/MLAs;
Allowance for income of minor;
Tax Holiday to SEZ unit;
Standard deduction for salaried person (₹50,000);
Deduction for entertainment allowance and employment/professional tax;
Interest under section 24 in respect of self-occupied or vacant property;
Additional deprecation;
Deductions under section 32AD, 33AB, 33ABA;
Various deduction for donation for or expenditure on scientific research;
Deduction under section 35AD or section 35CCC;
Deduction from family pension;
Any deduction under chapter VIA (other than deduction u/s 80JJAA – generation of employment and 80CCD(2) – contribution by CG/employer to NPS)
Indifference Point of Exemptions/Deductions for Salaried Employees
For Salaried Employees, following table may be useful to make a choice between Old Regime and New Regime at the beginning of the year:
Tax Calculators
Several calculators are available online to compare net tax payable under both regimes:
A simple calculator made by the IT department can be accessed here.
A more detailed calculator is available on Clear Tax's website.