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Section 202 vs Old Regime
Deduction break-even and regime choice

Section 202 gives lower slab progression but excludes many old-regime deductions. The right answer depends on salary, HRA, home loan, NPS, insurance and other deductions.

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Last fact-checked: 2026-05-26
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Fact-check notes

Last fact-checked: 2026-05-26

Transition rule: AY 2026-27 covers FY 2025-26 and continues under the Income-tax Act, 1961. The Income-tax Act 2025 Tax Year terminology applies for income earned from 1 April 2026 onward.

This page is written from official portal guidance and the supplied Batch 11 brief. Any future-dated form, rule or portal workflow should be verified in the active utility before filing or advising a client.

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What this covers

Section 202 gives lower slab progression but excludes many old-regime deductions. The right answer depends on salary, HRA, home loan, NPS, insurance and other deductions.

  • Section 202 is the default new Act regime reference.
  • Old regime can still matter where HRA, home loan and Chapter VIII deductions are large.
  • Business taxpayers must consider regime-switch restrictions separately.
Use cases

Who this is for

  • Employee with HRA.
  • Home loan borrower.
  • Business taxpayer with deductions.
  • CA preparing regime comparison.
Records

Documents and data to verify

  • Salary breakup.
  • Deductions proof.
  • Home loan certificate.
  • Rent receipts.
  • NPS employer contribution details.
Care points

Common mistakes to avoid

  • Comparing gross income instead of taxable income.
  • Ignoring standard deduction.
  • Missing Form 10-IEA where needed.
  • Applying special-rate income rebate incorrectly.
Action

How to proceed

  • Confirm the applicable year, taxpayer type, state, registration status and portal form before acting.
  • Reconcile the official portal data with books, bank statements, certificates, invoices and notices.
  • Prepare a written computation, filing note, document checklist or response with assumptions clearly stated.
  • Download acknowledgements, challans, workings and evidence after filing or submission.
Questions people ask

FAQs

Can WorkIndex help with this?

Yes. Post the facts and documents; relevant experts can quote for filing, advisory, reconciliation, registration, appeal support or ongoing compliance.

Is the page a substitute for professional advice?

No. Use it to prepare. A professional should check the current portal utility, official source and records before filing or taking a tax position.

What should I mention while posting?

Mention the year, state, form, deadline, amount involved, documents available, portal status and whether you need filing, correction, opinion or representation.

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