Explanation
Simple framework to decide: New regime default (from FY 2024-25): 0%/5%/10%/15%/20%/25%/30% slabs; standard deduction ₹75,000; rebate §87A up to ₹12L income effectively nil-tax. Old regime: 0%/5%/20%/30% slabs (lower basic exemption); allows 80C (₹1.5L), 80D (₹25k–₹50k), HRA (actual formula), §24(b) home loan (₹2L self-occupied), LTA, NPS (₹50k). The breakeven is approximately: if all deductions combined >₹3.5–4L, old regime is better for mid-range incomes (₹8–15L). For incomes >₹15L, do a proper calculation — the new regime's marginal tax savings often outweigh modest deductions. For incomes >₹50L, new regime generally wins because surcharge capping is better. Use the IT department's tax calculator on incometax.gov.in. Verify on the income-tax portal before filing.