Old vs New Tax Regime in India (Which Saves More?)
The new regime offers lower slab rates but fewer deductions. Old regime works better when you claim substantial 80C, HRA, and home loan benefits. For many salaries between ₹12–18 LPA with moderate deductions, new regime wins — but always run your own numbers.
When old regime often wins
High HRA exemption in metro cities.
Full ₹1.5 lakh 80C plus home loan principal and interest.
Combined deductions that push taxable income into lower slabs under old rules.
When new regime often wins
Few deductions — no HRA, minimal 80C.
Simpler filing with lower headline rates.
Salaried employees can switch each year (subject to current rules).