The Union Budget introduced the new tax regime with lower slab rates but without most deductions. Choosing between the old and new regime depends on your income structure and investment habits.

Old Tax Regime:

• Allows deductions like 80C, 80D, HRA, LTA, home loan benefits, etc.
• Beneficial if you invest in tax-saving instruments or have higher deductions.

New Tax Regime:

• Lower slab rates and simpler filing.
• No deductions except for NPS employer contribution and standard deduction (from FY 2023–24).
• Better for those who do not invest much in tax-saving schemes.

Which to choose?

• If you claim deductions above ₹2.5 lakh, the old regime is usually better.
• If you don’t invest much and want simplicity, the new regime saves more tax.

Conclusion – Compare both regimes using an online tax calculator before filing. A quick analysis can help you save thousands of rupees.