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CA Rinky Vishwakarma, Chartered Accountant
CA Rinky VishwakarmaSigning Chartered Accountant · SVT & Associates
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Tax Planning: Old vs New Regime

Income Tax Planning: Old vs New Tax Regime

Reviewed by CA Rinky Vishwakarma (ICAI 177507) · Last updated 2 October 2026

Tax planning between the old and new regime means computing your tax both ways each year on your real deductions and picking the lower. For FY 2025-26, the new regime has a ₹75,000 standard deduction and zero tax up to ₹12 lakh. SVT & Associates models both and advises on investments.

FeeFixed fee, quoted in writing after a free review
TurnaroundComparison in 1–2 working days
IncludedBoth regimes computed, deduction plan, investment advice
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Clients Served
20
Years Combined Experience
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Google Rating
2 hrs
Typical First Response
When this applies

Who needs tax Planning: Old vs New Regime, and when?

What you get

What is included in this service?

  • Tax computed under both regimes on your numbers
  • Break-even deduction level for your income
  • HRA, home loan, 80C, 80D and NPS impact quantified
  • Recommendation with the rupee difference
  • Investment calendar to use deductions before 31 March
  • Regime choice documented for employer and return
Documents

Which documents are required?

  • Salary structure or latest payslip
  • Form 16 for the previous year
  • Home loan interest certificate
  • Rent paid and landlord details
  • Existing 80C, 80D, NPS investments
  • Other income such as interest or rent
  • Capital gains details if any
  • Details of planned investments
Comparison

How do the old and new regimes compare for FY 2025-26?

The new regime is the default. It has lower slab rates and a rebate under section 87A that makes total income up to ₹12 lakh tax-free for residents (₹12.75 lakh for a salaried person with the standard deduction), but allows only the ₹75,000 standard deduction and a few others such as the employer's NPS contribution. The old regime has higher slabs but allows HRA, 80C, 80D, home loan interest and more.

Old vs new regime, FY 2025-26
FeatureOld regimeNew regime (default)
Slabs (individual)Nil to ₹2.5 lakh; 5% to ₹5 lakh; 20% to ₹10 lakh; 30% aboveNil to ₹4 lakh; 5% to ₹8 lakh; 10% to ₹12 lakh; 15%, 20%, 25% and 30% above
Standard deduction (salary)₹50,000₹75,000
Section 87A rebateUp to income ₹5 lakhUp to income ₹12 lakh
80C, 80D, HRA, home loan interestAllowedNot allowed (except employer NPS 80CCD(2))
SwitchingSalaried: every yearSalaried: every year; business income: limited
Worked example

Which regime wins for a ₹15 lakh salary? A worked example

Take a salaried resident under 60 with a gross salary of ₹15 lakh. Under the new regime, taxable income after the ₹75,000 standard deduction is ₹14.25 lakh, so tax is nil on the first ₹4 lakh, ₹20,000 on ₹4–8 lakh, ₹40,000 on ₹8–12 lakh and ₹33,750 on the next ₹2.25 lakh: ₹93,750, plus 4% cess = ₹97,500.

Under the old regime, assume deductions of ₹4.75 lakh in total: standard deduction ₹50,000, 80C ₹1.5 lakh, 80D ₹25,000, NPS 80CCD(1B) ₹50,000 and home loan interest ₹2 lakh. Taxable income is ₹10.25 lakh. Tax is ₹12,500 on ₹2.5–5 lakh, ₹1,00,000 on ₹5–10 lakh and ₹7,500 on the last ₹25,000: ₹1,20,000, plus cess = ₹1,24,800. The new regime saves ₹27,300 here. With larger deductions, such as high HRA, the old regime can win. This example is illustrative and ignores surcharge; we run your actual numbers. See also advance tax.

How it works

How does the process work, step by step?

  1. 1
    Same day

    Share your details

    Fill the form or WhatsApp us your situation and the documents you already have. Our CA responds within 2 hours.

  2. 2
    Within 1 working day

    Free CA review and written fee

    The CA reviews what you sent, lists anything missing and sends a fixed fee in writing before any work starts.

  3. 3
    1–2 working days

    Model both regimes

    We compute tax under both regimes, test different deduction levels and identify the break-even.

  4. 4
    Day 2–3

    Recommendation and plan

    The CA walks you through the result and the investment calendar for the year.

Pricing

What does it cost?

SVT & Associates quotes a fixed professional fee in writing after a free review of your documents, never an open-ended hourly bill. Government charges are shown on a separate line so nothing is bundled or hidden.

Fee structure — SVT fee and government charges shown separately
ItemAmountNote
SVT professional feeFixed, quoted in writingDepends on income sources, investments and the number of scenarios modelled. Quoted before work starts.
Government charge₹0Planning and computation carry no government fee.
Tax payable (if any)As computedPaid by you directly to the government. We do not hold your tax money.
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Your CA

Who reviews and signs your work?

CA Rinky Vishwakarma – Signing Chartered Accountant, SVT & Associates

CA Rinky Vishwakarma

ICAI No.: 177507  Signing Chartered Accountant, SVT & Associates

Fellow Chartered Accountant with 12+ years across Big 4, investment banking and independent practice. Reviews every tax filing and notice response before it leaves the firm, and signs tax audit reports and Form 15CB certificates with a UDIN. SVT & Associates has 20 years combined experience and has served 1,000+ clients from its Goregaon West, Mumbai office.

Fellow CA – ICAIICAI No.: 177507Direct & Indirect TaxMumbai
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FAQ

Frequently asked questions

Can I switch between regimes every year?
A salaried individual or anyone without business income can choose the regime every year when filing the return, regardless of what the employer used for TDS. A person with business income can switch back to the old regime only once. We note the choice so that the right return is filed.
Which regime is better if I have a home loan?
If you have a self-occupied home loan, interest up to ₹2 lakh is allowed only in the old regime. It helps only when your total old-regime deductions, including HRA and 80C, outweigh the lower slab rates of the new regime. We compute the point where the two regimes break even for your income.
Is NPS deduction available in the new regime?
The employer's contribution to NPS, up to 14% of basic salary plus dearness allowance, is allowed under section 80CCD(2) in both regimes. The extra ₹50,000 under 80CCD(1B) is available only in the old regime. We check your salary structure for this benefit.
Does the ₹12 lakh rebate apply to capital gains?
The rebate under 87A does not apply to short-term capital gains under section 111A or long-term gains under 112 and 112A, which are taxed at special rates. It applies to the rest of your income. A person with salary and capital gains needs a combined computation.
What if my employer deducted TDS under the wrong regime?
You can choose the other regime when filing the return and claim a refund of the excess TDS. The employer's regime choice is only for TDS. We prepare the return under the regime that gives the lower tax and report the TDS correctly.
When should I invest to save tax under the old regime?
Investments for 80C and 80CCD(1B) must be made on or before 31 March to count for that year. A staggered plan through the year is easier on cash flow than a March rush. We give you a calendar with amounts based on your estimate.
What is the last date to file an income tax return?
For individuals and HUFs who do not need an audit, the usual due date is 31 July after the financial year ends. Cases needing a tax audit normally get 31 October, and companies with transfer pricing reports 30 November. The government sometimes extends dates, so we confirm the notified date for your year before we start.
What happens if I miss the ITR due date?
You can still file a belated return under section 139(4), generally until 31 December of the assessment year, but with a late fee under section 234F (₹5,000, or ₹1,000 if total income is up to ₹5 lakh) and interest under 234A. Most losses cannot be carried forward in a belated return, which can cost more than the fee itself.
Do I need to e-verify my return after filing?
Yes. A return is treated as filed only after e-verification, which must be completed within 30 days of filing. You can verify with Aadhaar OTP, net banking, a pre-validated bank account or a demat account. We guide you through it and confirm the processed status on the portal afterwards.
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Who signs what. SVT & Associates is a Chartered Accountancy firm registered with the Institute of Chartered Accountants of India (ICAI). Work on this page is prepared under the supervision of CA Rinky Vishwakarma (ICAI No.: 177507), a practising Chartered Accountant. Tax returns are verified and e-filed by the taxpayer or authorised signatory; tax audit reports and Form 15CB certificates are signed by a practising CA with a UDIN. No guaranteed outcomes. Refunds, assessments, notice outcomes and department decisions depend on your facts and the tax authority, and cannot be promised. Information is general, based on the Income-tax Act, 1961 and the Finance Act rates for FY 2025-26 (AY 2026-27); for later years the Income-tax Act, 2025 applies with renumbered sections. Rates, limits and due dates change — we confirm them for your year before we file. This page is not a substitute for advice on your specific facts.

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