New Delhi, July 12 -- For salaried taxpayers earning around Rs.13 lakh a year, the assumption that tax-saving investments automatically make the old tax regime the better choice may no longer hold true. The changes introduced in Budget 2025 have significantly altered the tax equation, with the revised slab rates and rebate under the new regime narrowing, and in some cases eliminating, the tax advantage offered by traditional deductions.

To understand the impact, consider the example of a salaried employee with a gross annual salary of Rs.13.7 lakh. A comparison of the two tax regimes shows that the new regime can completely eliminate the tax liability, whereas the old regime still results in a tax outgo even after accounting for multiple...