Claim audit · FY 2026-27
“Old tax regime is dead after 2023”
The condition that decides it
The old regime remains fully available — the new regime is merely the default. Salaried taxpayers must actively opt out each year, and business-income taxpayers lock in via Form 10-IEA (with only one switch-back ever).
What the department sees
MEDIUM
Data the Income-tax Department already receives automatically — the reel doesn't mention this part.
The real math
The reel claims the old regime vanished in 2023; the arithmetic says otherwise. A salaried taxpayer earning ₹18,00,000 with ₹4,00,000 of 80C, 80D and home-loan interest deductions computes old-regime taxable income of ₹18,00,000 minus ₹50,000 standard deduction minus ₹4,00,000, which is ₹13,50,000. Under new-regime rates that same taxpayer gets only the ₹75,000 standard deduction, giving taxable income of ₹17,25,000 and a slab tax of roughly ₹2,52,000, versus about ₹1,62,000 in the old regime — a difference of around ₹90,000. The old regime is not dead; it is merely not the default, so the taxpayer must submit the regime declaration to the employer each year. For business income the choice is stiffer: opting out of the new regime once locks the old regime in via Form 10-IEA, with one switch-back ever. The viral framing mistakes 'default' for 'abolished'. The same taxpayer with no deductions would find the new regime cheaper, which is why the choice is recomputed afresh each year. The dead-regime framing is wrong: the old regime is alive and often cheaper, but it must be actively elected.
Questions people actually ask
There's a right way to do this
Which regime saves me more tax this year?
Sections: 115BAC, 10-IEA · We audit claims, not creators. Reviewed by Harun Raaj & Associates, Chartered Accountants · All audited claims