Income Tax
Old or new tax regime? A practical way to decide
The answer depends less on your salary and more on the deductions you actually claim. Here is a simple way to compare.
- Published
- Law stated as on
- Author
- Rohit Agarwal
- Reading time
- 3 min
Professionally reviewed by Rohit Agarwal (demo) on 04 Oct 2026.
Since the new regime became the default, most salaried taxpayers face the same question every year. The comparison is simpler than it looks if you start from your actual deductions rather than the maximum allowed.
Start with what you really claim
- 80C investments you would make anyway (EPF, PPF, insurance, children's tuition fees)
- Health insurance premiums under 80D
- HRA exemption, if you pay rent
- Interest on a home loan for a self-occupied house
Then compare
If these together are modest, the lower slab rates and higher standard deduction of the new regime usually win. Our free calculator does this comparison in a few seconds.
Salaried taxpayers can generally switch regimes every year when filing their return; those with business income have more limited options. Speak to us before you decide.