Old vs New Tax Regime: How to Decide

The new tax regime offers lower slab rates but withdraws most deductions and exemptions, while the old regime retains them. The right choice depends entirely on your individual numbers.

As a rule of thumb, if you claim substantial deductions — such as 80C investments, home-loan interest, HRA and 80D — the old regime may still work out cheaper. If your deductions are modest, the new regime's lower rates usually win.

The only reliable way to decide is to compute tax both ways for your actual figures. We run both computations for our clients each year and recommend the regime that minimises tax, while keeping your investment goals in mind.

Remember that the regime can generally be chosen at the time of filing for individuals without business income, so there is flexibility year to year. Plan early so your TDS and advance tax align with your choice.