Old vs New Tax Regime: Choose Wisely for Your Salary & Tax Savings

• Salaried employees must choose between old and new tax regimes for investment proof submission, impacting take-home pay and year-end tax.
• Old regime allows various deductions (80C, 80D, HRA, home loan interest) but has higher tax slabs for lower incomes.
• New regime offers lower tax rates and a standard deduction of Rs 75,000 without extensive documentation, appealing to those with fewer deductions.
• Gopal Bohra suggests new regime if deductions are less than Rs 8 lakh, old if more, for a Rs 25 lakh income in FY 2025-26.
• Employees can change their regime choice annually when filing ITR, but informing employers helps avoid last-minute TDS adjustments.

Why It Matters: Carefully calculate tax liability under both regimes before choosing to optimize savings.