When does old regime beat new regime?

Old regime is better when total deductions (80C + 80D + HRA + 24(b) + 80CCD(1B)) exceed roughly ₹3.75L–₹4.5L for income above ₹15L. Below that, new regime almost always wins thanks to the ₹12L tax-free threshold.

Can I switch regimes every year?

Salaried: yes, every year. Business income: only once back to old regime — once you exit old to new with business income, switching back is restricted.

Old vs New Tax Regime Comparison FY 2025-26

Direct comparison of old vs new tax regime for FY 2025-26. See which one saves you more tax based on your salary and deductions.

Updated April 2026•Reviewed by CA Priya Sharma (Membership No. 234567)

Annual gross salary15 Lakh

₹

Old regime deductions

80C investments

₹

80D health insurance

₹

Annual HRA received

₹

Monthly rent

₹

Home loan interest

₹

Recommended

new regime

Saves ₹53,820 vs the other

New regime tax

₹97.5K

In-hand: ₹14.03 L

Old regime tax

₹1.51 L

In-hand: ₹13.49 L

Detailed comparison

Particular	Old	New
Gross income	₹15.00 L	₹15.00 L
Total deductions	₹3.90 L	₹75.0K
Taxable income	₹11.10 L	₹14.25 L
Total tax	₹1.51 L	₹97.5K

Frequently asked questions

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