✅ New Regime
Lower rates, but limited deductions. Best if you have minimal investments.
✅ Old Regime
Higher rates, but full deductions (80C, 80D, HRA, etc.). Ideal for savers.
✅ Refund Impact
Choosing the right regime can boost your refund by ₹50,000+.
✅ Expert Help
Liquetax compares both regimes & files ITR for maximum refund.
🎬 Watch: New vs Old Tax Regime for ₹10 Lakh+ Salary
▶ Tap to play
Introduction: Old vs New Tax Regime 2026 for ₹10 Lakh+ Income
For AY 2026-27 (FY 2025-26), both regimes are available. The new regime is default but you can opt for the old regime if it saves tax. For a ₹10 Lakh+ salary, the choice can mean a difference of ₹50,000+ in tax. This guide helps you decide with clear numbers.
What is Tax Regime? (Old vs New)
India has two income tax regimes:
- Old Tax Regime: Higher rates but allows deductions like 80C, 80D, HRA, LTA, 80E, 80G, etc.
- New Tax Regime: Lower rates but allows only 80CCH, 80JJAA, and standard deduction (₹50,000).
Why Tax Regime Choice Matters for ₹10 Lakh+ Earners
- Tax Savings: Old regime with 80C, 80D, HRA can reduce tax by ₹50,000+.
- Startup & Business: Section 80-IAC (100% deduction) available only under old regime.
- Refund Impact: Wrong regime can reduce refund or cause extra tax.
Eligibility & Requirements
- All Individuals & HUFs: Can choose either regime.
- Business Income: Can switch only once – choose wisely.
- Salaried Employees: Can choose each year based on Form 16.
- Documents: Keep investment proofs, HRA receipts, insurance policies for old regime.
Step-by-Step Process to Choose the Right Regime
- Gather all income documents: Form 16, bank interest, business income.
- List all deductions: 80C, 80D, HRA, home loan interest, etc.
- Calculate tax under both regimes: Use a tax calculator or consult expert.
- Compare tax liability: Choose the regime with lower tax.
- File ITR online: Select the chosen regime in ITR form.
- E-verify and submit: Complete filing to claim refund.
Documents Required for ITR Filing
- PAN Card (mandatory).
- Form 16 (for salaried employees).
- Form 16A/16B/16C for TDS on other income.
- Investment proofs: PPF, ELSS, NSC, life insurance (old regime).
- Home loan interest certificate (old regime).
- Health insurance premium receipts (80D – old regime).
- Rent receipts & agreement (HRA – old regime).
- Bank account details for refund credit.
Government Fees & Charges
There is no fee to choose a tax regime. However, if you miss the ITR deadline, a late fee of ₹5,000 (₹1,000 for small taxpayers) applies. Interest under section 234A may also be charged.
How Liquetax Can Help You Choose the Best Regime
- Expert comparison: We compute tax under both regimes for your income.
- ITR filing: We file your return accurately under the best regime.
- Document verification: We ensure all proofs are in order.
- Refund tracking: We help you track your refund status.
- subject to the applicable requirements and authority decision: No fake claims, no risky schemes.
Choose Liquetax for a stress-free tax season and get the refund you deserve.
FAQs on Old vs New Tax Regime 2026
Old regime has higher rates but many deductions (80C, 80D, HRA). New regime has lower rates but very few deductions.
New regime is better. Tax under new regime will be lower because you don't have deductions to claim.
Yes, for salaried individuals you can choose each year. For business income, you can switch only once.
Yes, rebate u/s 87A is available for income up to ₹7 lakh under new regime. For income above ₹10L, rebate is not applicable.
If you choose the regime with lower tax, your refund (if TDS is deducted) will be higher. Wrong regime reduces refund.
We compute your tax under both regimes, considering all income, deductions, exemptions. Then we file ITR under the best regime. Flat ₹999 for full service.
Confused Which Regime Saves More Tax? Let Us Help.
Liquetax experts will compare both regimes for your income, calculate tax savings, and file your ITR for maximum refund. Free consultation worth ₹1,500 today.