Choosing between the Old and New income tax systems can be confusing. This guide explains both
in simple words so you can decide what’s best for you.
Income Tax: Old Regime vs New Regime (AY 2026-27)
Old Regime: INR 50,000
New Regime: INR 75,000 (from FY 2025-26 onwards)
Which One Should You Choose?
Choose Old Regime if you:
- Invest in LIC, PPF, ELSS
- Pay rent and claim HRA
- Have home loan interest
- Claim deductions over INR 2.5-3 lakh
Choose New Regime if you:
- Have little or no deductions
- Prefer simpler tax filing
- Earn up to INR 12 lakh (zero tax after rebate)
Final Tip
Always calculate your tax under both regimes before filing. Use the official calculator:
https://www.incometax.gov.in/iec/foportal/income-tax-calculator