Income Tax: Old vs New Regime Explained

A practical guide to choosing between the Old and New Income Tax regimes for FY 2025-26 with worked examples.

8 minincome taxold regimenew regimebudget 2025

Key differences at a glance

The Old Regime allows deductions under 80C, 80D, HRA etc. The New Regime offers lower slab rates but no deductions.

More detailed content and worked examples will be added soon.

Who benefits from the New Regime?

Taxpayers with fewer deductions and income up to ₹15 LPA generally benefit more from the New Regime's lower rates.

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Worked example

For a gross salary of ₹12 LPA with standard 80C investments of ₹1.5L, the Old Regime saves ₹22,500 more in tax.

More detailed content and worked examples will be added soon.

Tools for this topic

Income Tax India
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