A comparison for salaried professionals and business owners, including common deductions and applicable provisions.
The new tax regime has lower slab rates but removes most deductions. The old regime keeps the higher rates but allows you to claim 80C, 80D, HRA, LTA, and home loan interest.
For a salaried person claiming full 80C (Rs 1.5 lakh), standard deduction (Rs 50,000), and home loan interest or HRA, the old regime is usually better up to an income of around Rs 15-18 lakh.
For freelancers, consultants, and those with no major deductions, the new regime often wins because of simplicity and lower headline rates.
The default regime is now the new one. If you want the old regime, you must opt in while filing. We review every client's deductions first and then recommend the regime that actually leaves more money in their pocket.
The comparison should be made using the taxpayer's income, deductions, exemptions, and applicable assessment-year provisions.
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