Pick the old regime only if your deductions are large enough to beat the new regime's lower rates; for many salaried people today, the new regime comes out ahead.
The new regime is the default. It has lower slab rates but allows very few deductions. The old regime has higher rates but lets you subtract things like PPF and other tax-saving investments, health insurance premiums, house rent allowance and home loan interest on a house you live in.
So the decision comes down to one number: the total of the deductions you would actually claim. A quick way to check:
- Add up every deduction you genuinely have this year. Do not count investments you would make only to save tax.
- Work out your tax both ways. Our tax regime calculator does this and shows the break-even point.
- If the gap is small, the new regime is simpler and keeps your money free of lock-ins.
If you are salaried without business income, you can usually choose again each year when you file your return, so this is not a permanent decision. Check the current rules under the Income-tax Act, 2025, which applies from 1 April 2026.
Your own answer depends on your income and the deductions you really have. If you want someone to look at your numbers, you can book a free call.