Old vs new tax regime: Consider income and deductions before you pick

If you declared one regime to your employer for TDS but later find the other more beneficial, you can still switch when filing your income-tax return

A study by 1 Finance of 1,865 information technology (IT) professionals found that 68 per cent could have saved an average of ₹49,094 in taxes in the financial year (FY) 2024–25. Of those surveyed, 33 per cent selected the wrong tax regime. Among them, 86 per cent should have switched from the old to the new regime, while the rest would have benefited by shifting in the opposite direction.

 

Understand the differences

 

The old regime provides an exemption limit of ₹2.5 lakh, with a maximum slab rate of 30 per cent on income above ₹10 lakh. It features four tax