Employee money guide

Old vs New Tax Regime for Salaried Employees

Understand old and new tax regime choices for salary, deductions, HRA, investments, insurance, and tax filing.

Direct Answer

The old tax regime allows many deductions and exemptions. The new tax regime has lower slab rates but fewer deductions. The better choice depends on salary structure, HRA, loans, insurance, and investments.

Key Takeaways

Compare both regimes before filing.
HRA and deductions can make old regime useful.
New regime may suit employees with fewer deductions.

What to compare

Compare taxable income, HRA, Section 80C, health insurance, home loan interest, NPS, and other eligible deductions.

When to review

Review at the start of the financial year and again before tax declaration deadlines.

Next Actions

arrow_forward

Financial literacy for employees

Apply this

Open

arrow_forward

Tax saving calculator

Apply this

Open

arrow_forward

Tax filing

Apply this

Open

Related Learning

arrow_forward

Tax hub

Continue learning

Read

FAQs

Can I switch regimes every year?

expand_more

Salaried employees can generally compare and choose each year, subject to applicable tax rules.

Reviewed by the Saventh Financial Literacy Team. Educational information for Indian employees — not personalised advice. Mutual fund investments are subject to market risk. Saventh AMFI ARN 324457.

Keep learning with Saventh

Use these lessons to build everyday confidence around salary, tax, insurance, SIPs, and long-term goals.

Saventh Investment is an AMFI Registered Mutual Fund Distributor.

Disclaimer: Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements before choosing a fund, or designing a portfolio that suits your needs.

Saventh Investment makes no warranties or representations, express or implied, on products offered through the platform of Saventh Investment. It accepts no liability for any damages or losses, however, caused, in connection with the use of, or on the reliance of its product or related services. Terms and conditions of the website are applicable.
Investments in Securities markets are subject to market risks, read all the related documents carefully before investing.

AMFI Registered
ARN - 324457