Old vs New Tax Regime: Old or new tax regime, which is better for you?

While filing income tax, taxpayers will get two options. These include the old tax regime and the new tax regime. Both of these have their advantages and disadvantages. If you are going to file taxes, then you must be confused about which tax regime to choose.

According to the Income Tax Department, at present, salaried taxpayers have been given the exemption that they can come from the new tax regime to the old tax regime from one financial year to another. Along with this, you can also do the opposite.

For whom is the old tax regime better?

Under the old tax regime, taxpayers got the benefit of section 80C, leave travel allowance, and rent allowance. You can take advantage of section 80C by investing in different tax savings. Under section 80C, your tax of Rs 1.5 lakh is waived.

If you have applied for any such scheme in which you get the benefit of Section 80C or you can reduce tax with any allowance, then the old tax regime will be the better option.

For whom is the new tax regime right?

According to the Union Budget 2025, in the new tax regime, taxpayers get income tax-free up to Rs 12.5 lakh. Which means that you do not need to pay any tax on income up to Rs 12 lakh. If you are not getting the benefit of Section 80C or have not applied for any tax saving. So the new tax regime can also prove to be a better option.

Tax calculation will make the decision easy.

You can also take a decision by calculating the tax in both these tax regimes. Tax calculation will help you in choosing. For tax calculation, you do not have to calculate it yourself. You can calculate the tax by visiting the income tax website.

For this, you just have to enter the required information.

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