Decoding the Break-Even Points | Choosing Between Old vs. New Tax Regime

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  • Last Updated on 24 July, 2024

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Old vs. New Tax Regime

The new and old tax regimes in India offer different approaches to taxation with varying tax rates and deductions available to individuals. Our detailed table outlines the financial implications of the recent proposals in the Finance (No. 2) Bill 2024. Discover the optimal scenarios for electing the new Section 115BAC, and understand the impact of deductions such as Section 80C, 80D, and housing loan interest on your tax liabilities.

Table of Contents

  1. Table 1: Individual not eligible for any deduction
  2. Table 2: Individual eligible for deduction under section 80C
  3. Table 3: Assessee is eligible for deduction under sections 80C and 80D
  4. Table 4: Assessee is eligible for deduction under section 80C and 80D, and deduction for interest on housing loan under section 24(b)

The table below outlines the breakeven points for the new and old tax regime after the amendment proposed by the Finance (No. 2) Bill 2024.

Nature of deduction available in the normal tax regime Breakeven point When it is beneficial to opt for the new tax regime of Section 115BAC?

Reference
No deduction is allowable

–

 Always

Table 1
Deduction allowable under Section 80C

–

 Always

Table 2
Deduction allowable under:

  • Sections 80C
  • Section 80D

7,75,000

 Income in excess of Breakeven

Table 3

 
Deduction allowable under:

  • Section 80C
  • Section 80D
  • Section 24 (Interest on housing loan)

14,75,000

 Income in excess of Breakeven

Table 4

Taxmann's Income Tax Calculator

1. Table 1: Individual not eligible for any deduction

Income Tax liability under the New Regime Tax liability under the Normal regime (for AY 2025-26)

Net tax saving
6,00,000 – 33,800 33,800
7,00,000 – 54,600 54,600

8,00,000

 31,200 75,400 34,000
9,00,000 41,600 96,200

54,600

10,00,000

 52,000 1,17,000 65,000
11,00,000 67,600 1,48,200

80,600

12,00,000

 83,200 1,79,400 96,200
13,00,000 1,04,000 2,10,600

1,06,600

14,00,000

 1,24,800 2,41,800 1,17,000
15,00,000 1,45,600 2,73,000

1,27,400

Taxmann's Budget 2024-25

2. Table 2: Individual eligible for deduction under section 80C

Income Tax liability under the New Regime Tax liability under the Normal Regime (for AY 2025-26) Net tax saving
6,00,000 – – –
7,00,000 – 23,400 23,400
7,25,000 23,400 28,600 5,200
7,50,000 26,000 33,800 7,800
7,75,000 28,600 39,000 10,400
8,00,000 31,200 44,200 13,000
9,00,000 41,600 65,000 23,400
10,00,000 52,000 85,800 33,800
11,00,000 67,600 1,06,600 39,000
12,00,000 83,200 1,32,600 49,400
13,00,000 1,04,000 1,63,800 59,800
14,00,000 1,24,800 1,95,000 70,200
15,00,000 1,45,600 2,26,200 80,600

3. Table 3: Assessee is eligible for deduction under sections 80C and 80D

Income Tax liability under the New Regime Tax liability under the Normal regime (for AY 2025-26) Net tax saving
6,00,000 – – –
7,00,000 – – –
7,50,000 26,000 23,400 -2,600
7,75,000 28,600 28,600 –
8,00,000 31,200 33,800 2,600
8,50,000 36,400 44,200 7,800
9,00,000 41,600 54,600 13,000
9,50,000 46,800 65,000 18,200
10,00,000 52,000 75,400 23,400
11,00,000 67,600 96,200 28,600
12,00,000 83,200 1,17,000 33,800
13,00,000 1,04,000 1,48,200 44,200
14,00,000 1,24,800 1,79,400 54,600
15,00,000 1,45,600 2,10,600 65,000

4. Table 4: Assessee is eligible for deduction under section 80C and 80D, and deduction for interest on housing loan under section 24(b)

Income Tax liability under the New Regime Tax liability under the Normal Regime (for AY 2025-26) Net Tax Saving
6,00,000 – – –
7,00,000 – – –
8,00,000 31,200 – -31,200
9,00,000 41,600 – -41,600
10,00,000 52,000 33,800 -18,200
11,00,000 67,600 54,600 -13,000
12,00,000 83,200 75,400 -7,800
13,00,000 1,04,000 96,200 -7,800
14,00,000 1,24,800 1,17,000 -7,800
14,50,000 1,35,200 1,32,600 -2,600
14,75,000 1,40,400 1,40,400 –
15,00,000 1,45,600 1,48,200 2,600
16,00,000 1,76,800 1,79,400 2,600
17,00,000 2,08,000 2,10,600 2,600
18,00,000 2,39,200 2,41,800 2,600
19,00,000 2,70,400 2,73,000 2,600
20,00,000 3,01,600 3,04,200 2,600
25,00,000 4,57,600 4,60,200 2,600
30,00,000 6,13,600 6,16,200 2,600

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

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