Old vs New Tax Regime in India (2026): Which Is Better for You?
Every year at tax time, salaried Indians face the same question: should I stick with the old tax regime and claim my deductions, or switch to the new regime with…
Every year at tax time, salaried Indians face the same question: should I stick with the old tax regime and claim my deductions, or switch to the new regime with…
…Old regime (₹5 L deductions including ₹2 L home loan): Taxable ₹44.5 L. Tax ≈ ₹11.6 L + 10% surcharge + cess = ~₹13.3 L. New regime: Taxable ₹49.25 L….
…deductions claimed. Gross salary (₹/year)Old regime tax (with ₹2L deductions)Old regime tax (with ₹4L deductions)New regime taxBetter regime 7,00,000 ₹0 (87A) ₹0 (87A) ₹0 Tie — pick new (less paperwork)…
…both regimes. New regime allows up to 14% of salary; old allows 10%. Sources & references Income Tax Department of India Union Budget 2026 Income Tax Act, 2025 (effective 1…
…the old tax regime. The new (default) regime offers lower slab rates but disallows most of these deductions. So before planning around them, confirm which regime benefits you — if…
…— both regimes New regime: Gross taxable = Salary ₹14.22 L − ₹75K standard deduction = ₹13.47 L. Tax slab-wise = ₹20K (5% × ₹4 L) + ₹40K (10% ×…
…2023-24 the new tax regime is the default. If you do nothing, you are taxed under it. To use the old regime — with its 80C, HRA and other deductions…
…income up to ₹12 lakh tax-free. Here are the full slab tables for both regimes, side by side, with worked examples. New regime slabs (FY 2025-26) — the default Taxable…
…saves tax NSC — 7.7%, 5-year lock-in, interest taxable Tax-saving FD — 6.5-7.5%, interest fully taxable, weakest option Bonus tip: Add ₹50,000 NPS contribution under Section 80CCD(1B) for an additional…
…CTC as an NPS contribution can reduce taxable salary without switching regimes. See NPS tax benefits. FAQs Can I claim 80C under the new regime? No. 80C is not available…
…becomes zero. FY 2025-26 limits at a glance Regime Income limit for full rebate Maximum rebate New regime (default) ₹12,00,000 taxable income ₹60,000 Old regime ₹5,00,000 taxable income ₹12,500 For…
…the 5-year jail). Life insurance — never buy for tax reasons in either regime. Linked deep-dives Old vs New Tax Regime FY 2025-26 — which one saves you more? SIP…