Union Budget 2026: Old vs New Tax Regime - A Numerical Decision
Business
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Moneycontrol•01-02-2026, 16:16
Union Budget 2026: Old vs New Tax Regime - A Numerical Decision
- •The choice between old and new tax regimes depends on whether deductions under the old regime offset the new regime's lower slab rates.
- •For gross salaries up to Rs 5 lakh, tax is zero under both regimes due to Section 87A rebate.
- •Between Rs 7 lakh and Rs 10 lakh, the old regime can be competitive if deductions of Rs 1.5 lakh to Rs 4.5 lakh are available.
- •The old regime benefits those with multiple deductions (80C, HRA, home loan interest, health insurance), while the new regime suits those without.
- •For incomes above Rs 12-13 lakh, the new regime often offers better tax outgo unless deductions exceed Rs 7-8 lakh under the old regime.
Why It Matters: Choosing between old and new tax regimes is a numerical decision based on available deductions and income level.
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