old vs new regime calculator<\/a> can help you decide better.<\/p>\n\n\n\nWho should consider the old regime?<\/h2>\n\n\n\n
The old regime tends to work better if you pay home loan interest, claim significant HRA, invest the full \u20b91.5 lakh under 80C, pay health insurance premiums, and contribute to NPS. If you have several of these together, your deductions may cross the level where the old regime wins. If you have few deductions, the new regime’s lower rates usually save more.<\/p>\n\n\n\n
The new regime is the default. If you are salaried with no business income, you can choose the old regime each year while filing. If you have business or professional income, you must file Form 10-IEA before the due date to opt for the old regime, and once you switch back to the new regime you generally cannot return to the old one.<\/p>\n\n\n\n
A note on using deductions well<\/h2>\n\n\n\n
The old regime rewards deductions, which is useful \u2014 but only when the spending or investment behind a deduction makes sense for you. A home loan for a home you want, health cover your family needs, and retirement savings you would make anyway all earn their deduction honestly. Buying a product you do not need just to claim a deduction usually costs more in poor returns or locked-up money than it saves in tax. Choose the old regime because your genuine deductions are large, not as a reason to create deductions you would otherwise avoid.<\/p>\n\n\n\n
Frequently asked questions on old tax regime slabs<\/h2>\n\n\n\n
What are the old tax regime slabs for FY 2025-26?<\/strong><\/p>\n\n\n\nNil up to \u20b92.5 lakh, 5% from \u20b92.5\u20135 lakh, 20% from \u20b95\u201310 lakh, and 30% above \u20b910 lakh, plus 4% cess. Senior citizens (60\u201380) have a \u20b93 lakh exemption and super seniors (above 80) a \u20b95 lakh exemption.<\/p>\n\n\n\n
Which deductions are allowed in the old regime?<\/strong><\/p>\n\n\n\nThe full set, including Section 80C (up to \u20b91.5 lakh), 80CCD(1B) for NPS (\u20b950,000), 80D for health insurance, HRA, home loan interest under 24(b) (up to \u20b92 lakh), 80E, 80G, and 80TTA\/80TTB on interest income.<\/p>\n\n\n\n
Is the old regime still available in AY 2026-27?<\/strong><\/p>\n\n\n\nYes. The old regime continues with the same slabs and deductions. It is no longer the default, so you must actively choose it.<\/p>\n\n\n\n
How much income is tax-free under the old regime?<\/strong><\/p>\n\n\n\nTaxable income up to \u20b95 lakh is tax-free because of the Section 87A rebate. For a salaried person, the \u20b950,000 standard deduction plus other deductions can raise the tax-free salary further, depending on what you claim.<\/p>\n\n\n\n
How do I choose the old regime?<\/strong><\/p>\n\n\n\nThe new regime is the default. Salaried taxpayers can select the old regime while filing each year. Those with business income must file Form 10-IEA before the due date.<\/p>\n\n\n\n
Is the old or new regime better?<\/strong><\/p>\n\n\n\nIt depends on your deductions. The old regime wins only when they are large; otherwise the new regime’s lower rates and \u20b912 lakh rebate save more. Compare both before choosing.<\/p>\n\n\n\n
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