The government allows taxpayers to choose between the old tax regime (with deductions) and the new tax regime (with lower slab rates but no deductions).
1. Tax Slabs – Old vs New
| Income Slab | Old Regime (with deductions) | New Regime (no deductions) |
|---|---|---|
| 0 – 2.5 L | Nil | Nil |
| 2.5 – 5 L | 5% | 5% |
| 5 – 7.5 L | 20% | 10% |
| 7.5 – 10 L | 20% | 15% |
| 10 – 12.5 L | 30% | 20% |
| 12.5 – 15 L | 30% | 25% |
| 15 L+ | 30% | 30% |
2. Who Should Choose Old Regime?
If you claim deductions under 80C (₹1.5L), NPS (₹50k), Home Loan (₹2L)
If you get HRA, LTA, or have other exemptions
3. Who Should Choose New Regime?
If you have no major deductions
If your salary is simple and you prefer lower tax rates
💡 Pro Tip: Use an online tax regime calculator before filing ITR to see which option gives you maximum savings.
