24/04/2026
๐ *Old vs New Tax Regime โ Simple Comparison (FY 2026-27)*
We analysed salaries from โน13L to โน42L with common deductions:
โ๏ธ 80C (โน1.5L)
โ๏ธ NPS Employer (โน50K)
โ๏ธ 80D (โน25K/โน75K)
๐ *Key Findings:*
- Old regime becomes beneficial only when your effective deductions are substantial relative to your income, typically:
- Around โน3Lโโน5L+ deductions
- Income is in mid-to-high range (โน15L+)
- Major components like HRA + home loan interest are involved
๐ New regime is generally better when:
Deductions are low or moderate
Salary is up to ~โน15Lโโน18L
Or you prefer no investment/tax planning
๐ Results:
* > โน13L โ New better
* โน15L โ New better (slightly)
* โน20L+ โ Old better in most cases if major deductions are in hand
๐ก *Conclusion:*
If you are claiming deductions like Home loan, PF, LIC, NPS, medical โ stay in OLD regime.
If you prefer simplicity and no investments โ NEW regime works.