A common myth about the new tax regime is that it removes every deduction, full stop. It removes most of them — but not quite all.
You can still claim the standard deduction on salary income, the employer's contribution to your NPS account under Section 80CCD(2) (which is separate from your own 80CCD(1) contribution), and interest on a home loan for a let-out property, since that's treated as a loss against rental income rather than a deduction in the traditional sense.
What genuinely disappears under the new regime is the big-ticket stuff: Section 80C investments (PPF, ELSS, life insurance premiums), 80D health insurance premiums, and HRA exemption on rent. For most salaried employees without large 80C or HRA claims, this trade-off is exactly why the new regime often works out better despite losing these deductions.
The only reliable way to know which regime actually wins for your specific numbers is to run both scenarios side by side, which is what the Salary Tax calculator on this site does automatically.
Frequently asked questions
What is a salary calculator with old vs new regime comparison?
It takes your gross annual salary and computes your income tax liability under both the old and new tax regimes side by side, factoring in standard deduction, applicable slabs, cess, and rebates, so you can see which regime results in lower tax for your specific numbers.
What is the key difference between the old and new tax regimes?
The old regime has fewer, wider slabs but allows numerous deductions and exemptions like 80C, HRA, and home loan interest, while the new regime offers lower slab rates and a larger tax-free threshold but removes almost all deductions except the standard deduction.
Which regime is the default now?
The new tax regime is the default option for all taxpayers; if you want to be taxed under the old regime with its deductions, you must explicitly opt for it, either when filing your return or by informing your employer for TDS purposes.