Last Updated on July 26, 2024 at 8:51 am
Budget 2024 has further reduced the tax burden on those opting for the new tax regime. It has been clear for a couple of years now that the old tax regime is unlikely to get any further concessions. Also see: Budget 2024 modifies NPS deduction 80CCD(2) only for the New Tax Regime!
Tax payers can use our free tool to find out how much tax they need to “save” (that is invest, spend or borrow in avenues that can reduce taxable income) in the old tax regime to pay lower than the new tax regime: Budget 2024: New Tax Regime vs Old Tax Regime Calculator: Check which is better.
Here is a summary of our findings.
income in Lakhs | After Budget 2024 Your tax deductions (in lakhs) have to be higher than this to use the old regime (incl standard deduction if salaried) | Before Budget 2024 |
5 | 0 | 0.00 |
6 | 1.05 | 1.05 |
7 | 2.10 | 2.10 |
8 | 2.13 | 1.88 |
8.5 | 2.38 | 2.13 |
9 | 2.63 | 2.38 |
9.5 | 2.88 | 2.50 |
10 | 3.13 | 2.63 |
10.5 | 3.25 | 2.75 |
11.5 | 3.50 | 3.00 |
12.5 | 3.63 | 3.13 |
14 | 3.75 | 3.42 |
14.5 | 3.92 | 3.58 |
15.5 | 4.08 | 3.75 |
17 | 4.08 | 3.75 |
18 | 4.08 | 3.75 |
25 | 4.08 | 3.75 |
30 | 4.08 | 3.75 |
40 | 4.08 | 3.75 |
50 | 4.08 | 3.75 |
60 | 4.08 | 3.75 |
75 | 4.08 | 3.75 |
100 | 4.08 | 3.75 |
300 | 4.08 | 3.75 |
500 | 4.08 | 3.75 |
After Budget 2024 Your tax deductions (in lakhs) have to be higher than this to use the old regime (incl standard deduction if salaried)
Join over 32,000 readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email! 🔥Enjoy massive discounts on our robo-advisory tool & courses! 🔥
![After Budget 2024 Your tax deductions (in lakhs) have to be higher than this to use the old regime (incl standard deduction if salaried) After Budget 2024 Your tax deductions (in lakhs) have to be higher than this to use the old regime (incl standard deduction if salaried)](https://freefincal.com/wp-content/uploads/2024/07/After-Budget-2024-Your-tax-deductions-in-lakhs-have-to-be-higher-than-this-to-use-the-old-regime-incl-standard-deduction-if-salaried.jpg)
After budget 2024, from 15 lakhs to 500 lakhs (5 Crores) deductions have to be greater than Rs. 4.08 Lakhs for old regime to be beneficial. It was Rs. 3.75 lakhs before the budget.
For example those with a large salary and therefore EPF/NPS deductions more than 1.5 Lakhs a year, health insurance premiums close to the maximum allowed (75,000 – 25,000 for self and Rs 50,000 for parents) plus a home loan interest close to Rs. two lakhs or a large HRA exemption can opt for the old regime. It is silly to invest in a product (eg. NPS) only to choose the old regime.
Use our free tool to determine what will work for you: Budget 2024: New Tax Regime vs Old Tax Regime Calculator: Check which is better.
We recommend using the new tax regime except in cases where the old regime organically leads to significant benefits.
🔥Enjoy massive discounts on our courses, robo-advisory tool and exclusive investor circle! 🔥& join our community of 5000+ users!
Use our Robo-advisory Tool for a start-to-finish financial plan! ⇐ More than 1,000 investors and advisors use this!
New Tool! => Track your mutual funds and stock investments with this Google Sheet!
We also publish monthly equity mutual funds, debt and hybrid mutual funds, index funds and ETF screeners and momentum, low-volatility stock screeners.
![Follow Freefincal on Google News Follow Freefincal on Google News](https://freefincal.com/wp-content/uploads/2023/07/Follow-Freefincal-on-Google-News.jpg)
![Subscribe to the freefincal Youtube Channel Subscribe to the freefincal Youtube Channel. Subscribe button courtesy: Vecteezy.](https://freefincal.com/wp-content/uploads/2023/07/Subscribe-to-the-freefincal-Youtube-Channel.jpg)
![Follow freefincal on WhatsApp Channel Follow freefincal on WhatsApp Channel](https://freefincal.com/wp-content/uploads/2023/09/Follow-freefincal-on-WhatsApp-Channel-300x83.jpg)
![Listen to the Lets Get Rich with Pattu Podcast Listen to the Lets Get Rich with Pattu Podcast](https://freefincal.com/wp-content/uploads/2023/07/Listen-to-the-Lets-Get-Rich-with-Pattu-Podcast.jpg)
![Lets Get RICH With PATTU podcast on YouTube Lets Get RICH With PATTU podcast on YouTube](https://freefincal.com/wp-content/uploads/2023/08/Lets-Get-RICH-With-PATTU-podcast-on-YouTube-644x362.jpg)
- Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
- Have a question? Subscribe to our newsletter using the form below.
- Hit 'reply' to any email from us! We do not offer personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question.
Join over 32,000 readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email!
About The Author
![Pattabiraman editor freefincal](https://freefincal.com/wp-content/uploads/2019/11/Pattabiraman-author-freefincal-article-bottom.jpg)
Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! ⇐ More than 3,000 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter the market condition is!! Watch the first lecture for free! One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Our new course! Increase your income by getting people to pay for your skills! ⇐ More than 700 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!
Our new book for kids: “Chinchu Gets a Superpower!” is now available!
![Both boy and girl version covers of Chinchu gets a superpower](https://freefincal.com/wp-content/uploads/2021/02/Article-bottom-Chinchu-gets-a-superpower-front-cover-for-girls-and-boys.jpg)
![Feedback from a young reader after reading Chinchu gets a Superpower (small version)](https://freefincal.com/wp-content/uploads/2021/02/For-bottom-Feedback-from-a-young-reader-after-reading-Chinchu-gets-a-superpower.jpg)
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook is for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
Do you want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or get the Tactical Buy/Sell timing tool!
We publish monthly mutual fund screeners and momentum, low-volatility stock screeners.
About freefincal & its content policy. Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
- Twitter @freefincal
- Subscribe to our YouTube Videos
- Posts feed via Feedburner.
Our publications
You Can Be Rich Too with Goal-Based Investing
![You can be rich too with goal based investing](https://freefincal.com/wp-content/uploads/2016/11/You-can-be-rich-243x300.jpg)
Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want
![Gamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you want](https://freefincal.com/wp-content/uploads/2017/05/2-mini-Cover-pink.jpg)
Your Ultimate Guide to Travel
![Travel-Training-Kit-Cover-new](https://freefincal.com/wp-content/uploads/2019/11/Travel-Training-Kit-Cover-new.jpg)