Since Budget 2025, the new tax regime has clearly eclipsed the old for most income groups, aided by friendlier slabs and lower rates. In such cases, the savings are significant enough to tilt the choice in favour of the old regime. *Assuming the proposed rules related to the new Income Tax Act, 2025 are finalised in their current form and implemented from 1 April 2026. #Tax-savings calculations factor in standard deductions of Rs.50,000 under the old regime and Rs.75,000 under the new regime. Though the arithmetic may favour the old regime if the draft rules are finalised, not all exemptions may be available to every employee.

Source: Economic Times February 23, 2026 01:01 UTC