Old vs New Tax Regime: Which is Better for ₹8-15 Lakh Income?

• The government is making the new income tax regime more attractive, especially for the middle class, with reforms in Budget 2025.
• The new regime offers a higher tax-free limit (effectively ₹12 lakh) and a standard deduction of ₹75,000 for salaried/pensioners, compared to ₹5 lakh and ₹50,000 respectively in the old regime.
• It features simpler tax slabs, lower rates, and less paperwork, becoming the default option if no choice is made by the taxpayer.
• For an annual taxable income up to ₹10 lakh, the new regime can increase monthly take-home salary by approximately ₹10,000 if no significant deductions are availed.
• For ₹15 lakh income, the new regime is beneficial unless deductions exceed ₹5,37,500 (including standard deduction) under the old regime.

Why It Matters: The choice between old and new tax regimes depends on individual deductions; new regime benefits those with fewer deductions.