Skip to content
Tools.Town
280+ free online tools

Evergreen concept

Guide

Old vs New Tax Regime Checklist (India)

FY 2025-26 checklist to compare old vs new income-tax regimes — deductions, 87A rebate, and when to run both in the Income Tax Calculator.

16 August 2026 By Tools.Town Team 7 min read

Use this before you lock a regime in payroll or ITR software. Slabs and rebates below are for FY 2025-26 — re-check after every Budget.

Educational only. Surcharge, capital gains, and niche exemptions are out of scope. Always verify live rules.

1. Gather numbers

  • Gross salary / business income estimate for the year
  • List of old-regime deductions you actually claim (80C, 80D, HRA, 24(b), etc.)
  • Standard deduction eligibility (salaried)

2. New-regime quick screen

  • Taxable income roughly ≤ ₹12 lakh? Section 87A may zero tax under the new regime (salaried: ~₹12.75 lakh with ₹75,000 standard deduction — verify).
  • Few or no chapter-VIA deductions? New regime often wins.

3. Old-regime quick screen

  • Large deduction stack (full 80C + HRA + home-loan interest + 80D…)?
  • Willing to maintain proofs / Form 16 alignment?

4. Compute both

  1. Open Income Tax Calculator.
  2. Enter the same income for new and old (apply deductions only where the tool allows for old).
  3. Pick the lower tax for your facts — not a blog’s “most people” claim.

5. After you choose

  • Tell payroll / Form 12BB as required
  • Revisit mid-year if income or deductions change materially

Frequently Asked Questions

Which financial year does this checklist cover?

Written for FY 2025-26 (AY 2026-27) slabs and rebate thresholds. Re-verify after each Union Budget — rules change.

Is the new regime always better?

For many with few deductions, yes. Large 80C/HRA/home-loan interest stacks can still favour the old regime. Compute both.

Is this tax advice?

No. Educational checklist only. Confirm with a CA and the Income Tax Department for your facts.