But even now, as we enter further into 2025, one question lingers in the minds of millions of Indian taxpayers– Old vs New Tax Regime 2025: Which is best now?
Have you ever been stuck between itemizing deductions using the old system, or taking the new standard deduction option? The new tax regime was the default option in Budget 2023 and by 2025, a large section of salaried class have started to wonder whether continuing on old route is still an option.
CoinDCX News offers a real deep dive to consider more than mere numbers and slabs, but the human decisions that influence which tax path is right for you — whether flexibility, long-term saving or peace of mind.
Table of Contents
Understanding the Two Regimes
Let’s start by understanding what each regime offers as of 2025.
Old Tax Regime (2025)
- Allows over 70+ exemptions and deductions
- Popular deductions:
- ₹1.5 lakh under Section 80C
- ₹25,000 to ₹50,000 under Section 80D for health insurance
- HRA, LTA, home loan interest, etc.
- ₹1.5 lakh under Section 80C
- Taxpayers actively manage their investments and expenses to reduce tax liability.
New Tax Regime (2025)
- Simplified tax slabs
- Lower tax rates without claiming most exemptions
- Introduced as a way to streamline taxation for those who don’t claim many deductions
- Now the default regime unless the taxpayer opts out
The new tax regime has been made more attractive by the government with higher basic exemption limits and standard deductions in its place Upside risk, states CoinDCX News by 2025.
Tax Slabs Comparison (FY 2024–25)
| Income Slab (₹) | Old Regime Tax Rate | New Regime Tax Rate |
| 0 – 2.5 lakh | NIL | NIL |
| 2.5 – 5 lakh | 5% | 5% |
| 5 – 7.5 lakh | 20% | 10% |
| 7.5 – 10 lakh | 20% | 15% |
| 10 – 12.5 lakh | 30% | 20% |
| 12.5 – 15 lakh | 30% | 25% |
| Above 15 lakh | 30% | 30% |
Standard Deduction (New Regime 2025): ₹50,000 (introduced in Budget 2023)
Who Benefits From the Old Tax Regime?
If you’re someone who:
- Invests in ELSS, PPF, NSC, or tax-saving FDs
- Pays home loan EMIs (especially interest-heavy)
- Pays life or health insurance premiums
- Gets House Rent Allowance (HRA)
- Takes education loans
Then chances are the old tax regime still makes sense.
Let’s understand this better with an example.
Case 1: Salaried Employee with Deductions
| Particulars | Amount (₹) |
| Gross Salary | 12,00,000 |
| 80C (EPF, PPF, LIC) | 1,50,000 |
| 80D (Health Insurance) | 25,000 |
| Home Loan Interest (Sec 24b) | 1,50,000 |
| Standard Deduction | 50,000 |
| Taxable Income (Old Regime) | 8,25,000 |
In the old regime, tax on ₹8.25 lakh would be much lower than the new taxation regime without any deductions. Well in this case old regime wins.
Who Should Choose the New Tax Regime?
On the flip side, if you:
- Are a freelancer or gig worker
- Have fewer deductions or investments
- Dislike complex paperwork and declarations
- Prefer straightforward tax calculation
Then the new tax regime might be better.
Case 2: Young Professional with No Deductions
| Particulars | Amount (₹) |
| Gross Salary | 10,00,000 |
| Deductions Claimed | NIL |
| Taxable Income (New) | 10,00,000 |
Under the new regime, the effective tax is lower due to slab reductions.
Human Decisions Behind Tax Choices
Because tax isn’t just about math, it’s about life choices. According to a recent CoinDCX News poll, most of the taxpayers confessed as they decided on regimes only considering the lifestyle:
I chose new regime. as I have no more a home loan or LIC.
— Meena, 42, Bengaluru
The old rule is if I have to save, so will you!
— Rajeev, 29, Mumbai
The new system made it easier for me to prepare my tax documents as a retiree.
— Dr. Sharma, 61, Pune
This lifestyle, income group, Family Liability, along with age is a great way to answer the big question:
Old vs New Tax Regime 2025: Which Is Better Now?
Government’s Push Towards the New Regime
The government is steadily nudging people towards the new system by:
- Making it the default regime
- Offering standard deduction benefits
- Eliminating the need for proof submission
- Simplifying payroll processes for companies
However, it hasn’t scrapped the old regime yet, respecting that one-size doesn’t fit all.
Which it hasn’t done — yet,because it knows that one-size-fits-all is a fraud.
CoinDCX News reports that new tax regime adopters have increased 35% year-on-year since 2023.
Checklist to Decide Your Best Fit (2025)
Ask yourself:
✓ Home loan interest or HRA? ✅
Have I claimed more than ₹2–2.5 lakh in deductions? ✅
Yes: I like minimal documentation and less paperwork.
✅ Do I love fast, simple e-tax filing?
Do I earn the big bucks?
You should choose the old regime if your answers are mostly yes to deductions.
If you answered simply, the new regime may be right for you.
Tools to Help You Choose
Several online calculators allow you to compare both regimes side-by-side. Try government portals or apps like:
- Cleartax
- TaxBuddy
- Quicko
- Zerodha’s Tax Calculator
CoinDCX News also plans to launch a personalized “Regime Checker Tool” later in 2025. Stay tuned!
10 FAQs: Old vs New Tax Regime 2025- Which Is Better Now?
New vs. Old Tax Regimes in 2025
Old regime provides various deductions, exemptions, new regime has low tax rates but no deductions ( except standar dedcution)
Will the New Tax Law Apply in 2025?
Actually, yet not obligatory. Individuals can still choose the old regime while filing their ITR.
Building new Which régime would save most tax in 2025?
Ostensibly, it all depends on your net income, deductions and lifestyle. Low Deductions: In this situation, the new regime most likely saves more If you take high deductions, then the old regime is mostly cheaper.
Am I allowed to change regimes once a year?
That is correct, regime can be moved annually by salaried individuals. Business owners have restrictions.
What system would senior citizens prefer?
For senior citizens in particular, the old regime is often more beneficial because of 80D, 80TTB and other deductions.
How do I declare the status of regime offered?
You can choose your regime while filling ITR. The employer may also request on your preference at the beginning of the fiscal year
Can you invest just for saving tax?
Not always. Dollar cost averaging can allow you to stay the courseInvestments should Match YOUR goals not just taxes In its latest CoinDCX News episode, CoinDCX quotes, “Its time to combine tax-saving with wealth-building”.
How do I keep abreast of changes in tax rules?
Keep an eye on the official Income Tax portals as well as trusted sources like CoinDCX Newsto stay updated and informed.
Final Thoughts: What Should You Do Now?
So—Old Or New Tax Regime 2025: Which is better Now?
It has a different answer for you. Your freedoms have been handed back to you — be sure to utilize them properly.
Tip: If you are a great proponent of structured savings and already have such policies and loans, stay put with the old regime.
In a nutshell, if you like simplicity and have flexibility — the new regime is for you.