Tax

Old Tax Regime

Original income tax regime with higher slab rates (5%/20%/30%) but full access to 80C, 80D, HRA, and home loan interest deductions.

Definition

The old tax regime — the original Indian income tax structure — has slabs ₹0-2.5L nil, ₹2.5-5L 5%, ₹5-10L 20%, above ₹10L 30%. Section 87A rebate covers tax up to ₹5L taxable.

It allows the full suite of deductions: 80C (₹1.5L), 80CCD(1B) NPS (₹50K), 80D health insurance, HRA exemption, home loan interest (₹2L cap on self-occupied; unlimited on let-out), 80G donations, and more. For salaried taxpayers, the old regime wins when total deductions claimed exceed roughly ₹3.75 lakh on top of standard deduction.

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