Compare the old and new income tax regimes in India and understand which one is better based on deductions and income.
The Indian income tax system currently offers two options: the Old Tax Regime and the New Tax Regime. Taxpayers can choose the regime that results in lower tax liability.
The Old Tax Regime allows various deductions and exemptions such as Section 80C, Section 80D, HRA, LTA, and home loan interest deduction under Section 24(b).
The New Tax Regime offers lower income tax slab rates but removes most exemptions and deductions. It is suitable for taxpayers who do not claim many deductions.
Choosing the right tax regime depends on your annual income, salary structure, investments, insurance premiums, and housing loan benefits. Using an income tax calculator helps compare both regimes easily.
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