Salaried employee? Know 5 reasons why New Tax Regime is better than Old Regime in FY 2025-26

This article explains five points that make the new regime a much better choice for salaried taxpayers than the old regime in the current financial year.

1. It's simple

2. Reduces dependency on tax experts for filing ITR

The new regime reduces the dependency on tax professionals for most salaried taxpayers. As there are no deductions and exemptions that can be claimed, you won't need to go to a CA for filing ITR. If your income is only from salary, you can easily file ITR on your own or quickly learn how to do it.

However, you will need the help of a professional in case you have multiple sources of income and you don't know how to handle their taxation.

3. No deductions means no need for tax jugaad

The new regime has removed deductions and exemptions that are still available in the old regime. This means you don't have to do any tax jugaad for saving more. Moreover, you don’t have to waste time arranging food bills, fuel bills, rent bills, donation certificates, etc., to claim deductions under various sections of the Income Tax Act. Instead, you can use the time and energy to earn more.

4. It's a no-brainer for taxable salary up to ₹12.75 lakh, and even for those earning higher

Taxable salary is the part of your salary structure or CTC on which you are liable to pay income tax. If you are not aware of your taxable salary, you can ask your HR or someone in the accounts department of your company.

5. You can keep your tax and investments separately

The end of deductions in the new regime also means that you don't have to unwillingly park your money in tax-saving instruments like ELSS, tax-saving FD, life insurance, etc. It's your money. In the new regime, you can freely decide where to invest to maximise your income, and keep your tax and investments separate.