# New Regime Vs Old Regime

It is about choosing the right tax regime! 

But, you don't need to worry, we’ll sort out all your queries!  
Here's a breakdown to help you decide which one works best for you:  

👉New Tax Regime:  
Zero tax on income up to ₹7,00,000 (compared to ₹5,00,000 in the old regime).   
Overall lower tax rates. 

But there's a catch! You won't be able to claim popular deductions like 80C (investments, PPF, etc.) and 80D (medical insurance).   
  
But You can claim NPS U/s Section 80CCD(2) Employer Contribution & 80 CCD(1) Maximum up to Rs.50,000.  

👉Old Tax Regime:  
The old regime lets you claim deductions to reduce your taxable income, which can be a big tax saver.   
However, tax rates are generally higher compared to the new regime.    
  
So, which regime should you choose?  
👉If your total deductions are less than ₹1.5 lakh a year, the new regime might be simpler and save you time.  

👉If your deductions are more than ₹3.75 lakh a year, the old regime could potentially save you more tax.  

Still unsure? Here's a pro tip:  
  
Old Regime would be the most preferred choice as it brings deduction for very common expenses, such as Rent, more financial discipline in investments and tax savings.