Frequently Asked Questions
Which is better, old or new tax regime for FY 2025-26? ＋
It depends on your deductions. If your total deductions (80C, HRA, 80D, home loan interest, etc.) exceed roughly ₹3.75 lakh, the old regime usually saves more tax. Below that threshold, the new regime is generally beneficial. Use this calculator to compare both side-by-side.
What is the standard deduction in the new regime for FY 2025-26? ＋
The standard deduction under the new regime is ₹75,000 for salaried employees and pensioners (increased in Budget 2024). Under the old regime it remains ₹50,000.
Is rebate u/s 87A available under the new regime? ＋
Yes. Under the new regime, if your net taxable income is ₹12 lakh or below, the entire tax liability is nil (rebate u/s 87A). Under the old regime, rebate applies only if income is ₹5 lakh or below.
Can I switch between old and new tax regime every year? ＋
Salaried individuals (without business income) can switch every year. Taxpayers with business or professional income can switch only once from the old regime to the new regime and cannot switch back.
What deductions are NOT available in the new regime? ＋
HRA exemption, LTA, standard deduction on house property rent, 80C (LIC, PPF, ELSS etc.), 80D (health insurance), 80E, 80G, and home loan interest u/s 24(b) for self-occupied property are NOT allowed in the new regime. Only standard deduction of ₹75,000 and NPS deduction u/s 80CCD(2) from employer are allowed.