Old Tax Regime
India's original personal income tax structure, with higher slab rates but a wide range of deductions and exemptions.
Formula
Taxable Income = Gross Income - Deductions and Exemptions claimed; tax computed on the old slab schedule
Unit
₹
In depth
The old regime rewards taxpayers who actually use its deductions — Section 80C, house rent allowance, home loan interest, health insurance and the rest — and penalises those who do not. Its rates are higher than the new regime's, so the comparison turns entirely on the total deductions a taxpayer can genuinely claim. Salaried taxpayers may choose annually, while those with business income face restrictions on switching back and forth. Since the new regime became the default, an active election is required to remain in this one, and forgetting to elect costs the deductions.
Worked example
A taxpayer claiming ₹1.5 lakh under 80C, ₹2 lakh of home loan interest and ₹25,000 of health insurance has ₹3.75 lakh of deductions. Whether the old regime wins depends on whether those exceed the new regime's rate advantage.
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 “Old 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.