New tax regime or old tax regime — which is better?

Quick answer: New regime is better for most people earning under ₹15 lakh with few deductions.

Full explanation

India's new tax regime (default from FY 2024-25) has lower slab rates but no deductions except ₹75,000 standard deduction and NPS. The old regime has higher slabs but allows 80C (₹1.5L), HRA, home loan interest, and more. Simple rule: if your total eligible deductions (80C + HRA + home loan interest + others) exceed ₹3–3.5 lakh, old regime is better. If deductions are below that, new regime saves more. For high earners with home loans and maximum 80C investments, old regime often wins. Use the income tax calculator to compare both.

New tax regime or old tax regime — which is better?

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Full explanation