Many taxpayers assume the new tax regime eliminates all deductions and exemptions, but that's not entirely true. Several tax benefits are still available and can help reduce your tax burden. Here are five key deductions and exemptions you can claim under the new tax regime.

<p>Many taxpayers assume the new tax regime eliminates all deductions and exemptions, but that's not entirely true. Several tax benefits are still available and can help reduce your tax burden. Here are five key deductions and exemptions you can claim under the new tax regime.</p>

From standard deduction to NPS: 5 tax benefits still available under new regime

<p>Union Finance Minister Nirmala Sitharaman will present her ninth consecutive budget today. Every year, income tax is hyped in the Union Budget, as it's one of the most important sources of the government's revenue. While taxpayers and the middle class eagerly look for relief, it will directly impact their disposable income and discretionary spending. Since 1962, the old tax regime has been in practice with little bit modification in tax rates, adjusting to growth and inflation. However, since 2020, the Union Government has introduced the optional new tax regime. Taxpayers will be keen on whether the government scraps the old tax regime altogether. Further, the new and simplified Income Tax Act is set to come into effect on April 1, 2026, for easier compliance.&nbsp;</p><p><strong>Also Read: </strong><a href="https://www.wionews.com/world/gold-silver-flash-crash-explained-record-highs-1769771230629"><strong>Gold and silver prices fall after historic rally: What is causing flash crash?</strong></a></p><h2>Old tax regime vs new tax regime- Which one is better?</h2><p>Both tax regimes have different slab rates, with modifications in exemptions. The slab rates in the old tax regime are higher, new tax regime has lower and more progressive slabs.</p><p><strong>Slab rates of the old tax regime&nbsp;</strong></p>

<figure class="table"><table><tbody><tr><td>Income tax slabs</td><td>Income tax rates</td></tr><tr><td>Up to Rs. 2.5 Lakhs</td><td>Nil</td></tr><tr><td>Rs 2.5 Lakhs to Rs 5 Lakhs</td><td>5%&nbsp;</td></tr><tr><td>Rs 5 Lakhs to Rs 10 Lakhs</td><td>20%</td></tr><tr><td>Above Rs 10 Lakhs</td><td>30%</td></tr></tbody></table></figure>

<p><strong>Slab rates of the new tax regime</strong></p>

<figure class="table"><table><tbody><tr><td>Income tax slabs</td><td>Income tax rates</td></tr><tr><td>Up to Rs 4 lakhs</td><td>NIL</td></tr><tr><td>Rs 4 lakhs - Rs 8 lakhs</td><td>5%</td></tr><tr><td>Rs 8 lakhs- Rs 12 lakhs</td><td>10%</td></tr><tr><td>Rs 12 lakhs - Rs 16 lakhs</td><td>15%</td></tr><tr><td>Rs 16 lakhs - Rs 20 lakhs</td><td>20%</td></tr><tr><td>Rs 20 lakhs - Rs 24 lakhs</td><td>25%</td></tr><tr><td>Above Rs. 24 lakhs</td><td>30%</td></tr></tbody></table></figure>

<p>&nbsp;</p><p><strong>Standard deductions</strong></p><p>A person with a salaried income can claim a standard deduction of Rs 50,000 under the old tax regime, compared to the &nbsp;Rs 75,000 standard deduction of the new tax regime.</p><p><strong>Other exemptions&nbsp;</strong></p><p>The new tax regime has done away with some of the exemptions and deductions, such as HRA, home loan interest under Section 80 EE, and Section 80EEA, investments under 80C, medical insurance under 80D, and education loan under 80E, etc., that were available under the old tax regime. Some controversial omissions are also there in the new regime, such as disability, charity, and donation to a political party.&nbsp;</p><p><strong>Which one is better?</strong></p><p>Each one has its own advantages. However, under the new tax regime, there is a tax-free rebate under section 87A up to Rs 12 lakh, which was Rs 5 lakh under the old tax regime. So, for a salaried employee with minimal deduction, the new tax regime is beneficial. But with a substantial tax-saving investment and claiming major deductions, the old tax regime is better.</p><p>&nbsp;</p>

Old tax regime or new tax regime? Here’s a detailed comparison of income tax slabs, deductions, exemptions, and which option works better for salaried taxpayers ahead of Budget 2026.

Union Finance Minister Nirmala Sitharaman will present her ninth consecutive budget today. Every year, income tax is hyped in the Union Budget, as it's one of the most important sources of the government's revenue. While taxpayers and the middle class eagerly look for relief, it will directly impact their disposable income and discretionary spending. Since 1962, the old tax regime has been in practice with little bit modification in tax rates, adjusting to growth and inflation. However, since 2020, the Union Government has introduced the optional new tax regime. Taxpayers will be keen on whether the government scraps the old tax regime altogether. Further, the new and simplified Income Tax Act is set to come into effect on April 1, 2026, for easier compliance. Also Read: Gold and silver prices fall after historic rally: What is causing flash crash? Old tax regime vs new tax regime- Which one is better? Both tax regimes have different slab rates, with modifications in exemptions. The slab rates in the old tax regime are higher, new tax regime has lower and more progressive slabs. Slab rates of the old tax regime

<p>Old tax regime or new tax regime? Here’s a detailed comparison of income tax slabs, deductions, exemptions, and which option works better for salaried taxpayers ahead of Budget 2026.</p>

Union Budget 2026: Old tax regime vs new tax regime, which is better for taxpayers?

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From standard deduction to NPS: 5 tax benefits still available under new regime

Old tax regime vs new tax regime, which is better for taxpayers?