# Old vs New Tax Regime — Comparison

## Default vs Optional

Before FA 2023: Old Regime was default; New Regime (115BAC) was optional.
From FA 2023 onwards: New Regime (Sec 115BAC) is the default; Old Regime is optional.

## Senior / Super Senior Benefit

## Surcharge

## Rebate u/s 87A

Particulars	Old Regime	New Regime
Income Threshold	₹5,00,000	₹12,00,000
Max Rebate	₹12,500	₹60,000

## Key Deductions / Exemptions

Most Chapter VI-A deductions (80C, 80D, etc.) and exemptions like HRA, LTA are not available under the new regime.

Worked example

### Example 1

Example: Mr. Z, age 65, has total income of ₹6,00,000.

• Old Regime: Basic exemption ₹3,00,000 → Tax on ₹3,00,000 at slabs.

• New Regime: Basic exemption ₹3,00,000 (same for all ages under new regime).

Age benefit only matters in the old regime.

### Example 2

Example: Income ₹6 Cr.

• Old Regime: Surcharge 37% applies.

• New Regime: Surcharge capped at 25% — significant tax saving for HNIs.

⚠️ Common exam mistakes

Treating the old regime as still the default after FA 2023 — it is now OPTIONAL.
Applying senior/super-senior basic exemption (₹3L/₹5L) under the new regime — not available.
Applying 37% surcharge above ₹5 Cr under the new regime — capped at 25%.
Claiming 80C / HRA / LTA exemptions under the new regime.

Reference: Section 115BAC

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Old Tax Regime vs New Tax Regime (Sec 115BAC)

Worked example