It depends on your deductions. Generally, if your deductions (80C, 80D, HRA) exceed ₹4.25 Lakh, the Old Regime might be better; otherwise, the New Regime usually saves more.

The standard deduction has been increased to ₹75,000 for the New Regime in FY 2025-26 (Budget 2025).

The slabs are: 0-4L (Nil), 4-8L (5%), 8-12L (10%), 12-16L (15%), 16-20L (20%), and above 20L (30%).

For FY 2025-26, if your taxable income is up to ₹12 Lakh under the New Regime, you get a full tax rebate, making your tax liability zero.

Salaried individuals can switch between Old and New regimes every year at the time of filing. Business owners can only switch once.