Answer

1. F

   Facts

   The new regime has lower rates and a ₹75,000 standard deduction but allows almost no deductions. The old regime allows HRA, 80C, 80D, home loan interest and others with a ₹50,000 standard deduction. Which is cheaper depends on your numbers.

2. P

   Provisions and law

   • Sec 115BAC, Income-tax Act 1961 (now Sec 202)The new regime is the default; a person without business income can choose the old regime in a return filed by the Sec 139(1) due date.
   • Sec 80C, Income-tax Act 1961 (now Sec 123)Deduction up to ₹1,50,000 for specified payments such as EPF, PPF, ELSS, life insurance, tuition fees and home loan principal, together with 80CCC and 80CCD(1).
   • Sec 80D, Income-tax Act 1961 (now Sec 126)Health insurance deduction up to ₹25,000 for self, spouse and children (₹50,000 if senior) and another ₹25,000 for parents (₹50,000 if senior), with ₹5,000 for preventive check-up inside these limits.
3. A

   Analysis

   Take salary of ₹15,00,000. New regime: ₹14,25,000 taxable, tax ₹93,750 plus cess. Old regime with HRA exemption ₹1,80,000, 80C ₹1,50,000, 80D ₹25,000 and standard deduction ₹50,000 gives ₹10,95,000 taxable and tax of ₹1,41,000 plus cess. Here the new regime wins. The old regime usually wins only with large HRA and home loan interest together, so always compute both.

4. C

   Conclusion

   1. 1List all deductions you can prove.
   2. 2Compute taxable income and tax under both regimes.
   3. 3Include cess and any rebate.
   4. 4Pick the lower tax.
   5. 5Choose it in the ITR filed by the due date.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.