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HomeCompareOld Tax Regime vs New Tax Regime

Old Tax Regime

VS

New Tax Regime

Old vs New Tax Regime — which saves more for FY 2025-26?

New regime has lower slab rates but no Section 80C / 80D / HRA / home loan deductions. Old regime is better for high-deductions; new regime for minimal-deductions.

Pick Old Tax Regime when

Old Tax Regime

You claim ₹1.5 lakh under Section 80C (PF, ELSS, LIC, PPF)

You pay home loan interest above ₹1 lakh

You receive HRA and pay rent

You have ₹50,000+ medical insurance under Section 80D

Pick New Tax Regime when

New Tax Regime

You have minimal deductions (just standard ₹50,000)

You don't pay rent / home loan

You're salaried with mostly fixed income

Your taxable income is below ₹7 lakh (full rebate)

Side-by-side

Feature

Old Tax Regime

New Tax Regime

Slab rate up to ₹3 lakh

0%

0%

Slab rate ₹3-6 lakh

5%

5%

Slab rate ₹6-9 lakh

20%

10%

Slab rate ₹9-12 lakh

20%

15%

Slab rate ₹12-15 lakh

30%

20%

Slab rate above ₹15 lakh

30%

30%

Section 80C (₹1.5 lakh)

Available

Not available

Section 80D (medical insurance)

Available

Not available

HRA exemption

Available

Not available

Home loan interest (Sec 24)

₹2 lakh deduction

Not available (self-occupied)

Standard deduction

₹50,000

₹75,000

Rebate u/s 87A

₹12,500 (income ≤ ₹5 lakh)

₹25,000 (income ≤ ₹7 lakh)

NPS Section 80CCD(1B) extra

₹50,000 deduction

Not available

FAQ

How do I decide which regime?

Compute tax under both. If your total Section 80C + 80D + HRA + Section 24 deductions exceed ~₹3 lakh, old regime usually wins. Below that, new regime wins. Our ITR-filing service computes both automatically.

Can I switch regimes annually?

Salaried individuals: yes, every year. Business / professionals (ITR-3 / 4): once you opt out of old to new, switching back is restricted (can switch only once back).

Which is the default?

New regime is the default since FY 2023-24. To opt for old, file Form 10-IEA with your ITR.