Fortune India
Choosing the right income tax regime in 2025 could save you thousands—here’s how to decide.
India offers two tax regimes: the old system with deductions and the new system with lower slab rates but no exemptions.
The new regime suits salaried individuals with little or no deductions, offering simpler compliance and lower tax rates.
If you claim major deductions under 80C, 80D, HRA, or home loan interest—sticking to the old regime may save you more.
Compare tax slabs across both regimes to see where your annual income fits and what tax you’d pay.
No 80C, 80D, standard deduction, HRA, LTA, or home loan benefits are allowed in the new regime.
From FY 2023-24, the new regime allows a standard deduction of ₹75,000 for salaried taxpayers.
The new tax regime is now the default from FY 2023–24 onward—but you can still opt for the old one when filing.
Compare your actual tax liability under both regimes using online income tax calculators before choosing.
If you invest smartly—old regime may suit you. If not, the new regime offers ease and upfront savings.