New Tax Regime
India's simplified personal income tax structure with lower slab rates and almost no deductions, now the default.
Formula
Taxable Income = Gross Income - the limited deductions permitted; tax computed on the new slab schedule
Unit
₹
In depth
The new regime removes most deductions in exchange for lower rates, and it became the default option, so remaining in the old regime requires an explicit election each year. It suits taxpayers without home loans, large insurance premiums or substantial 80C investments — typically younger earners and those who rent. Its most consequential effect on investing is that tax-saving instruments lose their tax rationale entirely: an ELSS under the new regime is simply an equity fund with a three-year lock-in. Slab rates and the standard deduction have been revised in successive budgets, so the current schedule must be used for any comparison.
Worked example
A taxpayer with no deductions to claim pays less under the new regime. The same taxpayer with ₹3.75 lakh of genuine deductions may pay less under the old one, and only computing both settles it.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “New Tax Regime” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.