Old vs. New Tax Regime: Which One Should You Pick?

The Indian government introduced the New Tax Regime to simplify the tax structure. However, the Old Tax Regime still exists with its plethora of deductions. Which one wins?

Key Differences

• Old Regime: Higher tax rates but allows exemptions like 80C, HRA, LTA, and Section 24 (Home Loan Interest).
• New Regime: Lower tax rates but disallows most exemptions and deductions.

Who Should Choose What?

If you have significant investments in PPF, LIC, and a home loan, the Old Regime might still be beneficial. However, if you prefer liquidity and don't want to lock funds in tax-saving instruments, the New Regime is likely better.

Use our Income Tax Calculator to compare your liability under both regimes.