New Regime vs Old Regime — FY 2025-26

NEW REGIME

Default for FY 2025-26

₹12L effectively tax-free

₹75,000 standard deduction

No 80C, 80D, HRA, LTA

Minimal paperwork

Best if deductions < ₹4L

OLD REGIME

Must be actively chosen

All deductions intact

80C, 80D, HRA, LTA apply

Investment proofs required

Best if deductions > ₹4–6L

Can switch till July 31