Old vs New tax regime: which saves you more?

Every year you can choose between the old and new tax regimes. The right choice depends mostly on how many deductions you claim.

The new regime

Lower tax rates but almost no deductions. Under FY 2025-26 rules, income up to twelve lakh is effectively tax-free. It is simpler and better for those who do not invest much in tax-saving instruments.

The old regime

Higher rates, but you can reduce taxable income with deductions like 80C, 80D and HRA. It wins if you already have a home loan, rent, and full 80C investments.

The fastest way to decide is to run both through the BalluFinance Income Tax Calculator and pick whichever leaves more money in your pocket.