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Advance Tax Showdown: New vs. Old Regime for a ₹24 Lakh Salary in FY 2025-26

If you earn a salary of ₹24 lakh per annum, planning your advance tax for Financial Year 2025-26 is no longer optional—it’s a necessity. With the new tax regime now the default and a completely revamped slab structure, a clear comparison with the old regime can save you lakhs. Here’s how the numbers stack up and what it means for your advance tax liability.

Income Tax Calculator FY 25-26 ( Use Karsaathi Tax Calculators Before Filing Taxes Free tools for Indian taxpayers) 

Why Advance Tax Matters for Salaried Individuals:

Advance tax applies when your total tax liability exceeds ₹10,000 in a year, after accounting for TDS. While your employer deducts TDS on salary, any income from interest, rent, capital gains, or freelance work can create a shortfall. The due dates—15 June (15%), 15 September (45%), 15 December (75%), and 15 March(100%)—remain unchanged. Using an advance tax calculator based on the right regime ensures you don’t miss payments and attract interest under Sections 234B and 234C.

The Tax Slabs for FY 2025-26

New Regime (default)

Under the Budget 2025 revamp, the new tax slabs are:

• ₹0 – 4 lakh: Nil
• ₹4 – 8 lakh: 5%
• ₹8 – 12 lakh: 10%
• ₹12 – 16 lakh: 15%
• ₹16 – 20 lakh: 20%
• ₹20 – 24 lakh: 25%
• Above ₹24 lakh: 30%
  Salaried individuals get a standard deduction of ₹75,000. No rebate under Section 87A is available for income above ₹12 lakh.

Old Regime

The traditional slabs remain unchanged:

• ₹0 – 2.5 lakh: Nil
• ₹2.5 – 5 lakh: 5%
• ₹5 – 10 lakh: 20%
• Above ₹10 lakh: 30%
  Standard deduction is ₹50,000. You can reduce taxable income further by claiming deductions like Section 80C (up to ₹1.5 lakh), 80D (health insurance), 80CCD(1B) (NPS up to ₹50,000), etc.

Case Study: ₹24 Lakh Salary – Which Regime Wins?
 

New Regime Computation
Gross salary: ₹24,00,000
Less: Standard deduction ₹75,000
Taxable income = ₹23,25,000
Tax calculation:

• First ₹4 lakh: Nil
• ₹4-8 lakh (₹4L): 5% = ₹20,000
• ₹8-12 lakh (₹4L): 10% = ₹40,000
• ₹12-16 lakh (₹4L): 15% = ₹60,000
• ₹16-20 lakh (₹4L): 20% = ₹80,000
• ₹20-23.25 lakh (₹3.25L): 25% = ₹81,250
  Total tax = ₹2,81,250
  Add 4% health & education cess = ₹11,250
  Net tax payable = ₹2,92,500

Old Regime Computation (with typical max deductions)
Gross salary: ₹24,00,000
Less: Standard deduction ₹50,000
Less: 80C ₹1,50,000, 80D ₹25,000, 80CCD(1B) ₹50,000 (total ₹2,75,000)
Taxable income = ₹21,25,000
Tax calculation:

• ₹0-2.5 lakh: Nil
• ₹2.5-5 lakh (₹2.5L): 5% = ₹12,500
• ₹5-10 lakh (₹5L): 20% = ₹1,00,000
• ₹10-21.25 lakh (₹11.25L): 30% = ₹3,37,500
  Total tax = ₹4,50,000
  Add 4% cess = ₹18,000
  Net tax payable = ₹4,68,000

Even after exhausting the most popular deductions, the old regime leaves you with a ₹1,75,500 higher tax bill. Without any deductions, the old regime tax would soar to ₹5,38,200. The new regime is the clear winner, offering substantial savings and simpler compliance.

How to Plan Your Advance Tax:

If your only income is salary and your employer factors in the new regime for TDS, you may not need to pay advance tax separately. However, if you have additional income (like interest exceeding ₹10,000 tax shortfall), compute your total liability using the new regime. Pay 15% by 15 June 2025, 45% by 15 September, 75% by 15 December, and the full 100% by 15 March 2026.

Final Verdict:

For a ₹24 lakh salary in FY 2025-26, the new tax regime delivers unmatched efficiency. The absence of deduction documentation and the lower slab rates make it the logical default. Use an advance tax calculator with the updated slabs to project your dues accurately, avoid interest penalties, and keep your financial plan on track.

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