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Old regime or new regime: how to choose in 5 minutes
Old regime vs new regime in 5 minutes: a two-question shortcut, breakeven deduction table by salary, and the switching rules for FY 2026-27.
9 min readUpdated
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The short answer
Answer two questions: how much do you actually claim in deductions (HRA exemption, 80C, 80D, home loan interest), and what is your salary? If your salary is ₹12,75,000 or less, the new regime is tax-free after the rebate under section 156 (earlier 87A), so it cannot be beaten. Above that, the old regime wins only when deductions are large.
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