Question 1

What deductions are available under the old tax regime but not the new regime?

Accepted Answer

The old regime allows deductions under Section 80C (up to ₹1.5 lakh for PPF, ELSS, EPF, etc.), Section 80D (health insurance premiums), HRA exemption, home loan interest under Section 24(b), NPS under 80CCD(1B), and many more. The new regime only offers a standard deduction of ₹75,000 and employer NPS contribution. If your total deductions are substantial, the old regime could save more tax.

Question 2

At what income level does the new regime become better than the old regime?

Accepted Answer

There is no single income threshold. It depends on your deductions. Generally, if your total deductions (80C + 80D + HRA + others) are less than ₹2.5–3.75 lakh, the new regime is better due to lower slab rates. For high-deduction taxpayers (with HRA, home loan, and full 80C/80D), the old regime often saves more. Use this calculator to compare for your exact situation.

Question 3

Can I switch between old and new regime every year?

Accepted Answer

Salaried employees can switch between old and new regimes every financial year by informing their employer. Business/professional income taxpayers who opt for the new regime can switch back to the old regime only once in their lifetime. From FY 2023-24 onwards, the new regime is the default — you must explicitly opt for the old regime if preferred.

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