Decoding the Break-Even Points | Choosing Between Old vs. New Tax Regime
- Blog|Budget|Income Tax|
- 3 Min Read
- By Chetan Kulasri
- |
- Last Updated on 24 July, 2024
Latest from Taxmann
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
- Table 1: Individual not eligible for any deduction
- Table 2: Individual eligible for deduction under section 80C
- Table 3: Assessee is eligible for deduction under sections 80C and 80D
- 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:
|
7,75,000 |
Income in excess of Breakeven |
Table 3
|
Deduction allowable under:
|
14,75,000 |
Income in excess of Breakeven |
Table 4 |
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 |
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 |
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