Old Tax Regime Still Benefits Many: Why Deductions Keep it Relevant

• Despite the new tax regime becoming the default, 28-29% of taxpayers still find the old regime beneficial due to its deduction provisions.
• Key deductions like House Rent Allowance (HRA), Section 80C, health insurance (80D), and home loan interest (Section 24) are absent in the new regime.
• The old regime is particularly advantageous for salaried individuals with structured compensation, especially those claiming HRA.
• Education loan interest deduction under Section 80E, with no upper monetary limit, offers significant tax savings for higher education loans.
• Taxpayers with gross salaries around Rs 25 lakh and deductions/exemptions of Rs 8.5 lakh or more should consider the old regime for potential savings.

Why It Matters: The old tax regime remains relevant for many taxpayers due to substantial deductions, despite the new regime's simplicity.