Tax · Decide once
Old vs New Tax Regime
From FY 2024-25, the new regime is the default. You can opt out (back to old) by filing Form 10-IEA. Old regime: lower rates but with deductions (80C, 80D, HRA, home loan interest). New regime: higher slabs but FEWER deductions. Most people need to run BOTH numbers — there's no universally correct answer.
Who needs this
Every taxpayer. Decision must be made at start of FY (or via Form 10-IEA at ITR filing).
Key dates
- Form 10-IEA — opt out of new regimeBefore ITR filing of relevant AY
- Salaried decision communication to employerApr-May for TDS adjustment
- ITR filing — final regime lockedJul 31, 2026
Key decisions
- Q1
Quick rule of thumb?
If 80C + 80D + HRA + home-loan-interest deductions > ₹3.75L: OLD regime usually wins. Below that: NEW regime usually wins. Run both via our calculator to be sure.
- Q2
Can I switch every year?
Salaried: yes, can switch annually via Form 10-IEA. Business/profession: switch is one-time + irrevocable (usually). Be careful.
- Q3
What's available under old?
80C (₹1.5L), 80D (₹25K-1L), 80CCD-1B NPS (₹50K), 80E education loan, HRA, home-loan interest u/24b (₹2L), 80G donations, 80U disability.
- Q4
What's available under new?
Standard deduction ₹75K (salaried), 80CCD-2 (employer NPS), 80JJAA (new employees). That's basically it.
CBDT rules + tax-act references
- FY 2024-25 onwards: NEW regime is default for individuals.
- Form 10-IEA required to opt INTO old regime.
- Salaried: switch allowed every year. Business/profession: one-time switch only.
- Standard deduction: ₹50K (old) / ₹75K (new).
All tax topics
Recommended →Old vs New tax regime calculator