Compare estimated tax under the old regime (with deductions) vs. the new simplified regime.
New regime: lower slab rates but no deductions. Old regime: standard slabs, but your taxable income is first reduced by your total deductions (80C, HRA, standard deduction, etc.) before tax is computed. Whichever gives a lower tax is generally better for you.
Illustrative estimate only — tax rules change frequently and vary by jurisdiction/circumstance. Verify with an accountant or official source before relying on this.
The new tax regime has been the default since FY 2023-24. If you want the old regime, you (or your employer, for TDS purposes) need to actively opt in each year.
Salaried individuals without business income can choose either regime each financial year when filing their return. Those with business or professional income face more restrictions on switching back and forth.
The new regime almost always wins if you have little or no deductions (no rent, minimal 80C, no home loan), because of its higher rebate threshold and standard deduction.