New Tax Regime vs Old Tax Regime for Online ITR Filing in 2026

One question that confuses taxpayers every year during Income Tax Return Filing is: Which tax regime should you choose — New Tax Regime or Old Tax Regime?

Today, the Indian government allows taxpayers to choose between two tax systems while filing Income Tax Return 2026. One system offers lower tax rates with fewer deductions, while the other provides higher deductions and exemptions with comparatively higher tax rates.