New Vs Old Tax Regime Debate Continues !

The new financial year 2026 – 27 has begun from the 1st of this month, bringing significant changes in income tax rules that directly impact salaried employees. Companies will continue to deduct TDS based on the new tax regime by default unless employees opt for the old regime. The increase in standard deduction to ₹75,000 is expected to reduce taxable income and provide some relief to taxpayers.

Under the new tax regime, individuals with annual income up to ₹12 lakh will not have to pay income tax, reducing TDS burden significantly. However, those opting for the old regime can benefit from increased allowances like child education and hostel allowances, which help in lowering tax liability. Experts suggest choosing the tax regime carefully based on salary structure, deductions, and investments to maximize take-home salary.