Income Tax
Old regime or new: what actually decides it
The answer is not a rule of thumb. It depends on your deduction profile, and it is worth recomputing each year.
Every year we are asked which regime is better, and every year the honest answer is the same: it depends on what you can actually claim.
What tips the balance
The old regime only wins when the deductions are real and substantial:
- Housing loan interest on a self-occupied property
- House rent allowance, where the rent is genuinely paid
- Section 80C at or near the limit
- Medical insurance under 80D for the family and parents
A salaried taxpayer with few of these is almost always better off under the new regime, which now carries a higher standard deduction and a wider rebate.
Recompute, do not assume
Slabs, the standard deduction and the rebate have all moved in recent years. A choice that was correct two years ago may not be correct now, and the decision can be revisited annually for most taxpayers.
Our income tax calculator compares both regimes side by side on your own figures. Bring the result to us and we will sanity-check the assumptions behind it.
This article is general information, not advice on your circumstances. Positions change with each notification — please confirm before acting.
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