# 5 Key Differences Between Old & New Tax Regime (FY 2024-25)

> Confused about which tax regime to pick? Here are the 5 most important differences that affect your take-home pay.

Author: Tax CoPilot Team. Updated: 2026-02-28T06:57:34.06892+00:00.

## 1. Standard Deduction
The new regime offers ₹75,000 standard deduction vs ₹50,000 in the old regime.

## 2. Section 80C
Investments up to ₹1.5 lakh under 80C (PPF, ELSS, EPF) are only deductible under the old regime.

## 3. HRA Exemption
House Rent Allowance exemption is available only under the old regime. If you pay significant rent in a metro city, this alone can be worth ₹1-2 lakh in deductions.

## 4. Tax Slabs
The new regime has more slabs with lower rates, making it beneficial for those with fewer deductions.

## 5. Section 87A Rebate
Under the new regime, income up to ₹12 lakh is effectively tax-free thanks to the enhanced rebate.

**Bottom line:** If your total deductions exceed ₹3.75 lakh, the old regime likely saves you more. Use our [free calculator](/calculators/india-tax-regime) to check.