← GlossaryPolicy & Tax
Tax Regime (New vs Old)
Taxpayers can choose between the new regime, now the default, with lower rates and a large rebate but almost no deductions, and the old regime, with higher rates but deductions for items like PPF, insurance premiums and home loan interest.
Why It Matters
For most young earners without big deductions, the new regime is simpler and cheaper.
In India
Someone with a large home loan and full 80C investments may still pay less under the old regime.
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