Salary of Rs. 30L, Which Tax Regime to Choose?

Salary of Rs. 30L, Which Tax Regime to Choose?

For individuals earning of Rs. 30 lakhs, selecting the right tax regime can save lakhs of rupees in your pocket. In this article, we will compare both the tax regimes side by side, but first, let us understand both the tax regimes.

Income Tax Slabs Under the New Tax Regime

Under the new income tax regime of the new income tax slabs, that has come into effect from April 1, 2025, the basic exemption is increased from Rs. 3 lakh to Rs. 4. Therefore, Individuals with a total income less than Rs.4 lakh will not have to file ITR. The new tax regime is the default tax regime.

Income (Rs)	Income Tax Rates (%)
0 – 4,00,000	0%
4,00,001 – 8,00,000	5%
8,00,001 – 12,00,000	10%
12,00,001 – 16,00,000	15%
16,00,001 – 20,00,000	20%
20,00,001 – 24,00,000	25%
24,00,001 and above	30%

Income Tax Slabs under the Old Tax Regime

There are no changes in the old tax regime. The old tax regime offers several deductions and exemptions such as HRA, LTA, 80C, 80D , etc. However, the new tax regime does not offer these deductions.

Income (Rs)	Income Tax Rates (%)
0 – 2,50,000	0%
2,50,001 – 5,00,000	5%
5,00,001 – 10,00,000	20%
10,00,001 and above	30%

Here is an analysis by CA Pratibha Goyal.

Salary of Rs. 30L, which Tax Regime to choose.

Even with Tax Deductions of 7.6L, New Tax Regime shines. pic.twitter.com/ZUUXdQvXOE

— Pratibha Goyal (@PratibhaGoyal) May 19, 2025

As you can see, even with Tax Deductions of 7.6L, the New Tax Regime shines.