Question 1

How do I choose between the old and new tax regime?

Accepted Answer

Compare the tax under both on the same salary. The new regime has wider slabs and a higher standard deduction but allows almost no deductions; the old regime taxes more steeply but lets you claim 80C, 80D, NPS, HRA and home-loan interest. Whichever produces less tax on your actual deductions is the one to pick.

Question 2

What is the standard deduction in each regime?

Accepted Answer

Salaried taxpayers get a standard deduction of ₹75,000 under the new regime and ₹50,000 under the old regime.

Question 3

Which deductions are lost under the new regime?

Accepted Answer

The new regime does not allow 80C, 80D, 80CCD(1B), HRA exemption or self-occupied home-loan interest. Employer NPS contribution under 80CCD(2) is still allowed.

Old vs New Tax Regime

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