Tax planning · 2 min read
Old or new regime: which one fits your income?
Compare the final tax, not just the slab rate. Here’s where to start.
Educational guide · Updated 19 September 2026 · FY 2025–26 / AY 2026–27
The quick answer
The better regime depends on your taxable income and eligible deductions. Calculate both using the same income and compare final tax after rebate and cess.
Start with comparable numbers
- Use actual salary, rather than CTC. Employer benefits can make these different.
- Separate standard deduction from your other eligible claims.
- Keep capital gains outside an ordinary-income estimate.
For business owners
Regime switching has additional conditions when you have business or professional income. Check the applicable forms and deadlines before making an election.
Sources & further reading
General educational information, not an individual tax opinion. Facts and filing-year rules determine your treatment; confirm current requirements before acting.
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