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New tax regime vs old: which to choose?

Tax7 min read
By NexMaxo Editorial TeamPublished 11 May 2026Updated 22 Jun 2026

India's new tax regime offers lower slab rates but removes most deductions (80C, HRA, etc.). The old regime keeps the deductions but at higher rates.

Pick the new regime if

  • You don't claim large deductions
  • You're early in your career with few investments
  • You prefer simplicity over optimisation

Pick the old regime if

  • You max out 80C (₹1.5L) + 80D + home loan interest
  • You receive significant HRA
  • Your deductions exceed the break-even threshold
The break-even depends on your income and total deductions — run both in the income tax calculator before filing.

Sources

Reviewed against primary sources. Rates and rules change — confirm current figures with the official source before acting.

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