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Comparing Old vs. New Tax Regimes
Posted On
20th March 2025
Old vs New Tax Regime
India’s tax system offers two distinct regimes: the old tax regime and the new tax regime. The old regime includes several deductions, such as those for home loan interest under Section 24(b) and principal repayment under Section 80C. While this regime offers higher deductions, it comes with more complexity and paperwork, making it ideal for those with significant deductions. In contrast, the new tax regime provides lower tax rates but eliminates most deductions, including home loan deductions. This makes the new regime simpler but less advantageous for taxpayers who rely on deductions to lower their tax burden. The infographic helps you compare both options, enabling you to decide which tax regime will work best for your financial situation, depending on whether you prioritize simplicity or maximizing deductions.

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