New Tax Regime vs Old: Which is better for FY 2025-26?

KAMRIT runs income tax engagements end to end with senior expert accountability and transparent fixed-fee pricing across India.

The 2026 starting point

If you are reading this in 2026, three things have shifted on new tax regime vs old since the early publications elsewhere on the web went up: the regulator has issued new notifications, the appellate authorities have reworked some interpretations, and the underlying enforcement posture has tightened. KAMRIT keeps the position current. What follows is the 2026 picture, not a 2022 reprint.

New tax regime: 2025-26 slabs

New tax regime: 2025-26 slabs. This is one of the most common questions clients raise on income tax engagements with KAMRIT. The short answer is that the rule turns on the specific facts: turnover, sector, transaction history, and prior compliance. Below is the working framework we use on live files.

Old tax regime: 2025-26 slabs

Practitioner tip on old tax regime: 2025-26 slabs: the regulator's most recent guidance is rarely identical to the textbook position. We track every relevant notification and flag the change when it affects an active client. If your business has unusual fact patterns, the standard answer often does not apply.

Deductions allowed in each

Deductions allowed in each, in practice, splits into two camps: businesses that document the position contemporaneously, and businesses that try to reconstruct it after a notice. The first camp wins almost every time. The second camp pays late fees, interest, and often penalty.

Break-even income

Break-even income. This is one of the most common questions clients raise on income tax engagements with KAMRIT. The short answer is that the rule turns on the specific facts: turnover, sector, transaction history, and prior compliance. Below is the working framework we use on live files.

When to opt back to the old regime

The cleanest framework for when to opt back to the old regime is the one the appellate authorities themselves use. Establish the facts, identify the statutory provision, and apply the leading interpretation. Where the rule is principle-based, KAMRIT tests it against the most recent precedents.

Get this done

If this is on your roadmap and you want a partner who has done it many times, reach out to KAMRIT. We respond within one business day, quote a fixed fee within two, and start the file the same week. See full pricing on our income tax services page.