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What Are the Old and New Tax Regimes?
A brief overview to help you differentiate between your tax options and boost your savings
The Income Tax Department offers two options: the old regime, which allows deductions like HRA, 80C, and NPS, and the new regime, which simplifies taxation with lower slab rates and no major exemptions. Understanding which regime suits your income, deductions, and filing preferences is key to minimizing tax and maximizing returns. TaxBuddy can instantly help you compare and choose.
Key Differences
The old regime helps you lower your taxable income by claiming various deductions. It benefits those who invest or spend in tax-saving instruments. The new regime offers lower tax rates but removes most exemptions. Your choice depends on how much you typically deduct each year.
Refund Comparison
With TaxBuddy, you can simulate both regimes before filing. Our AI estimates your refund or tax dues under both options. For example, a salaried person with ₹10L income and ₹2.5L deductions generally saves more in the old regime. Refund projections are generated instantly using Form 26AS and your inputs.
Who Should Choose What
The old regime is ideal for salaried individuals who claim major deductions such as HRA, 80C, and 80D. The new regime is better suited for those with fewer claims, like gig workers, freelancers, or first-time filers, who want a simpler process without paperwork.
TaxBuddy Insights
TaxBuddy’s AI-driven platform checks both options automatically, calculates total tax, and helps file the right form, whether you opt in or out via Form 10-IEA. You can switch every year if you're salaried, so it pays to compare before filing.
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