Old vs New Tax Regime: How to Choose

The new tax regime is now the default. It offers lower slab rates but removes most deductions. The old regime keeps deductions but has higher rates. Neither is better for everyone.

The new regime usually suits you if

• You do not pay rent or claim HRA
• You have no home loan
• Your tax-saving investments are small

The old regime may still win if

• You pay substantial rent in Delhi and receive HRA
• You pay home-loan interest on a self-occupied house
• You fully use investment, health insurance and similar deductions

The only reliable method

Compute tax both ways on your actual figures. A difference of a few thousand rupees in deductions can change the answer. We run both computations for every client and show them side by side.

Can you switch?

Salaried taxpayers can generally choose each year at the time of filing, even if a different option was declared to the employer. People with business income have restrictions on switching back, so their decision needs more care.

Send us your salary structure and investment details and we will tell you which regime saves more.

This article gives general information. Limits, rates and due dates change, so please confirm the current position for your case before acting.

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