Tax & Savings
Contents
Old vs New Tax Regime
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FREE TO USENO LOGIN REQUIREDUPDATED FY 2025–26
FY 2025–26 side-by-side tax comparison with all deductions. See which regime saves you more.
Visual Comparison
Key Differences
| Feature | Old Regime | New Regime |
|---|---|---|
| Standard deduction | ₹50,000 | ₹75,000 |
| 80C deduction | Up to ₹1.5 lakh | Not available |
| 80D (health insurance) | Up to ₹25,000–50,000 | Not available |
| HRA exemption | Available | Not available |
| Basic exemption | ₹2.5 lakh | ₹3 lakh (₹7L after rebate) |
When to Choose Which
Choose Old Regime
- You claim ₹3 lakh+ in deductions
- You have home loan interest (80EEA)
- You pay rent in a metro (HRA benefit)
- You invest in 80C instruments fully
Choose New Regime
- Fewer deductions (< ₹2L typically)
- Simpler filing preferred
- Income below ₹7 lakh (zero tax)
- No home loan or HRA benefit
Frequently Asked Questions
At ₹12 LPA with full 80C, 80D, and HRA deductions, Old Regime often saves more. Without deductions, New Regime is simpler and may save more.
Salaried employees can switch every year. Business owners/freelancers can switch once.
Under Section 87A, no tax is payable if taxable income is ≤ ₹7 lakh under the new regime (FY 2025–26).
Yes — employer’s NPS contribution under Section 80CCD(2) up to 10% of basic salary is available in the new regime.
Depends on investments. Many senior citizens benefit from old regime due to higher 80D limits (₹50,000) for health insurance premiums.