New vs old regime
What this means, checked by a CA
We compare both regimes on your exact numbers. The new regime usually wins, with nil tax up to ₹12.75 lakh salary, but large HRA, home loan or deductions can flip it.
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Answers on this topic
- Old vs New Tax Regime: Which Is Better For You?The most important annual tax decision for every salaried employee. New regime: lower rates, no deductions. Old regime: higher rates, many deductions. The winner depen…
- Old vs New Tax Regime: SelectionThe single biggest tax decision every year. Wrong selection costs ₹20,000-80,000 annually for most salaried individuals.
- Section 124 (old 80CCD(2)): Employer NPS Contribution (Both Regimes)The only deduction available in BOTH old and new tax regime. Employer contributes to your NPS on your behalf. You pay zero, and get a ₹45,000–₹1.05L annual deduction.…
- Section 22(1)(b) (old 24(b)): ₹2L Home Loan Interest Deduction (Self-Occupied)The most valuable deduction for salaried home owners in the old tax regime. Up to ₹2L of home loan interest per year is deductible from taxable income. At 30% bracket,…
- HRA Exemption: Metro vs Non-Metro (Section 11, old 10(13A))HRA is the single largest exemption for salaried employees in the old regime. Calculated using a three-number formula. Most employees claim the wrong amount because th…