Introduction
Salaried employees in India can reduce tax burden with various deductions and exemptions under old and new tax regimes.
Old Tax Regime
Old tax regime offers deductions on HRA, LTA, medical expenses, home loan interest, and investments in tax-saving instruments like PPF and ELSS.
New Tax Regime
New tax regime offers a lower tax rate but with limited deductions on standard deduction, professional tax, and home loan interest up to Rs. 2 lakh.
Comparison
Old regime has higher tax rates but more deductions, while new regime has lower tax rates but limited deductions, choose based on individual circumstances.
Key Deductions
Deductions under Section 80C, Section 80D, and Section 80E are available under the old tax regime for salaried employees to claim.
Tax Planning
Understanding and claiming available deductions can help salaried employees minimize tax liability and take home a higher salary.
Conclusion
Salaried employees should understand the benefits and drawbacks of each tax regime to make an informed decision and maximize their tax savings for FY 2026-27.
Free Tax Check
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