To select the most beneficial regime, consider these key factors:
- Investment Portfolio: If you have substantial investments under 80C, choose old regime
- Home Loan: Old regime benefits those claiming home loan interest deductions
- Rental Income: HRA claims make old regime more attractive
- Simple Returns: New regime suits those preferring straightforward taxation without deductions
Use an income tax calculator to compare your tax liability under both regimes. Generally, individuals with annual investments and deductions exceeding ₹3.75 lakhs benefit more from the old regime.