Old vs New regime comparison, HRA exemption, 80C deductions, capital gains, TDS — updated for FY 2025-26.
The central question for every salaried taxpayer in FY 2025-26. The New Regime has lower rates but strips away deductions; the Old Regime keeps deductions but charges higher rates.
| Feature | Old Regime | New Regime |
|---|---|---|
| Standard Deduction | ₹50,000 | ₹75,000 |
| Section 80C | Up to ₹1.5L | Not available |
| HRA Exemption | Available | Not available |
| Home Loan Interest (Sec 24) | Up to ₹2L | Not available |
| NPS Sec 80CCD(1B) | Up to ₹50K extra | Not available |
| Tax-free up to | ₹5L (with 87A rebate) | ₹12L (with 87A rebate) |
If your total deductions (80C + HRA + home loan interest + 80CCD(1B)) exceed roughly ₹4-4.5 lakh, the Old Regime typically saves more. Below that threshold, the New Regime almost always wins. Use the Income Tax Calculator above with your actual numbers to check precisely.
Source: Income Tax Department, India