Choosing between the old and new tax regimes has become one of the most important tax decisions for salaried employees. While the new tax regime offers enhanced Section 87A tax rebate and is now the default option, the old tax regime still allows several deductions and exemptions that can significantly reduce taxable income and thus the net tax outgo.
So, if you earn Rs 15 lakh, Rs 20 lakh or Rs 25 lakh annually, which system will help you earn more on taxes? The answer really hinges on the deductions and exemptions you are eligible to claim. Here's a comparison.