Old vs New Tax: Which Saves More at ₹20–30L?

India has two income tax regimes — old (more deductions, higher rates) and new (lower rates, fewer deductions). Which one actually saves you more tax depends entirely on how much you earn and how much you invest. Here's a plain-English breakdown.

Here's what happened: The new tax regime is now the default for salaried taxpayers, with lower slab rates but almost no deductions allowed.. The old regime lets you claim 80C, HRA, home loan interest, NPS, and medical insurance deductions — reducing your taxable income significantly.. For incomes between ₹20–30 lakh, the better regime depends on total deductions claimed — a tipping point most people miss..

What you should do: Calculate your total eligible deductions (80C, HRA, home loan, NPS, 80D) — if they cross ₹3.75 lakh, the old regime likely saves more tax.. Use a free tax calculator on the Income Tax India portal or GoCredit to compare your exact liability under both regimes before July 31.. Inform your employer HR of your regime choice before April to ensure correct TDS deduction from your salary for the full year..

If your employer pays HRA and you're on rent, that single deduction alone can swing the verdict to the old regime — even at ₹20 lakh income.