New Tax Regime

The new tax regime is the default tax structure under Section 202 of the Income Tax Act 2025, effective from FY 2026-27 (assessment year 2027-28). It offers lower slab rates but removes most deductions and exemptions available in the old regime — including HRA exemption, Section 80C, Section 80D, and LTA. Taxpayers can opt out by filing Form 10-IE and choosing the old regime, which has higher rates but allows deductions. The new regime requires you to give up tax-saving investments to benefit from lower rates.