1. Standard Deduction
The new regime offers ₹75,000 standard deduction vs ₹50,000 in the old regime.
2. Section 80C
Investments up to ₹1.5 lakh under 80C (PPF, ELSS, EPF) are only deductible under the old regime.
3. HRA Exemption
House Rent Allowance exemption is available only under the old regime. If you pay significant rent in a metro city, this alone can be worth ₹1-2 lakh in deductions.
4. Tax Slabs
The new regime has more slabs with lower rates, making it beneficial for those with fewer deductions.
5. Section 87A Rebate
Under the new regime, income up to ₹12 lakh is effectively tax-free thanks to the enhanced rebate.
Bottom line: If your total deductions exceed ₹3.75 lakh, the old regime likely saves you more. Use our free calculator to check.