Since the introduction of the new tax regime, one question comes up more than any other: which one should I pick? The honest answer is — it depends on your deductions.
The new regime
Offers lower slab rates but removes most common deductions and exemptions (like 80C, 80D and HRA). It is simpler and often better if you do not have many investments or a home loan.
The old regime
Keeps higher rates but lets you claim the full range of deductions. It usually wins if you invest in 80C instruments, pay significant rent (HRA), or have a home loan.
A simple rule of thumb
Add up all the deductions you actually claim. If they are substantial, the old regime often saves more; if they are minimal, the new regime is usually cleaner and cheaper.
We run both calculations for every client and recommend the one that leaves more money in your pocket.
