Old vs new tax regime: how the choice works for FY 2025-26

From FY 2023-24 onwards the new regime is the default. For FY 2025-26 its slabs are wider — no tax up to ₹4 lakh, and a Section 87A rebate that brings tax to zero where taxable income does not exceed ₹12 lakh. The old regime keeps the earlier slabs but allows the familiar deductions: 80C investments, mediclaim, home-loan interest and HRA.

What actually decides the choice

• Total deductions you genuinely claim — 80C, 80D, home-loan interest, HRA. The larger this total, the more the old regime can help.
• Income level — at many income levels the new regime's wider slabs and ₹75,000 standard deduction win unless deductions are substantial.
• Salaried taxpayers can choose each year at filing; business income holders have restrictions on switching back.

A practical way to decide

Compute tax both ways before filing — the difference is often a specific number, not a guess. Our income-tax calculator on this site compares both regimes side by side using the current slabs. The result is indicative; the final computation depends on your complete facts.

To have the comparison done for your own figures, message “Regime” on WhatsApp and share your Form 16 or income details.