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Income Tax07 July 2026· 1 min read

Old vs New Tax Regime: How to Choose (FY 2025-26)

The new regime is the default with lower slab rates but few deductions; the old regime rewards those who invest and claim exemptions.

India runs two personal income-tax systems. The new regime is now the default: it has lower slab rates and a higher standard deduction (₹75,000) but does not allow most exemptions like 80C, HRA or home-loan interest. The old regime keeps higher rates but lets you claim those deductions.

  • If you claim significant deductions (80C, HRA, home loan, 80D), the old regime often wins.
  • If you have few deductions, the new regime is usually simpler and cheaper.
  • Salaried taxpayers can switch each year; those with business income face restrictions.

This is general information, not professional advice — confirm the current position for your specific case before acting.

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