# New or Old regime for deductions for life insurance, ELSS and other investments

**URL:** https://community.greythr.com/t/new-or-old-regime-for-deductions-for-life-insurance-elss-and-other-investments/2291
**Category:** Income Tax
**Tags:** income-tax-savings
**Created:** [April 7, 2021, 8:35am UTC](https://community.greythr.com/t/new-or-old-regime-for-deductions-for-life-insurance-elss-and-other-investments/2291 "2021-04-07T08:35:47Z")
**Posts on this page:** 4
**Page:** 1

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### Author: ![MadhuPR](https://avatars.discourse-cdn.com/v4/letter/m/43a26b/32.png) [@MadhuPR](https://community.greythr.com/u/MadhuPR)
#### Post date: [April 7, 2021, 8:35am UTC](https://community.greythr.com/t/new-or-old-regime-for-deductions-for-life-insurance-elss-and-other-investments/2291/1 "2021-04-07T08:35:47Z")

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Hi,

Which is beneficial? Employee should opt for new tax regime (no deductions) or continue with old tax regime and claim deductions for life insurance, ELSS and other investments?

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### Author: ![Ankit](https://sea2.discourse-cdn.com/flex024/user_avatar/community.greythr.com/ankit/32/1201_2.png) [@Ankit](https://community.greythr.com/u/Ankit)
#### Post date: [April 7, 2021, 9:15am UTC](https://community.greythr.com/t/new-or-old-regime-for-deductions-for-life-insurance-elss-and-other-investments/2291/2 "2021-04-07T09:15:39Z")

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Hi Madhu,

This will depend on Case to Case based on Salary employee is earning and investment he or she makes.

| Annual Income of Rs.5,00,000 (without exemption) | | | | |
| --- | --- | --- | --- | --- |
| | Old Regime | New Regime | | |
| Income tax slab | Tax Rate (%) | Tax (Rs.) | Tax Rate | Tax (Rs.) |
| Up to Rs. 2,50,000 | 0 | 0 | 0 | 0 |
| 250001 – 500000 | 5 | 12500 | 5 | 12500 |
| (-) Rebate | | -12500 | | -12500 |
| Tax Payable | | 0 | | 0 |

| Annual Income of Rs.7,50,000 (without exemption) | | | | |
| --- | --- | --- | --- | --- |
| | Old Regime | New Regime | | |
| Income tax slab | Tax Rate | Tax (Rs.) | Tax Rate | Tax (Rs.) |
| Up to Rs. 2,50,000 | 0 | 0 | 0 | 0 |
| 250001 – 500000 | 5 | 12500 | 5 | 12500 |
| 500001 – 750000 | 20 | 50000 | 10 | 25000 |
| Sum | | 62500 | | 37500 |
| Health and Education cess | 4 | 2500 | 4 | 1500 |
| Tax Payable | | 65000 | | 39000 |

| Annual Income of Rs.7,50,000 (with exemption) | | | | |
| --- | --- | --- | --- | --- |
| Annual Income | 750000 | | | |
| Exemptions u/s 80C | -150000 | | | |
| u/s 80CCD(1B) | -50000 | | | |
| u/s 80D | -50000 | | | |
| HRA | -10000 | | | |
| Taxable Income | 4,90,000 | | | |
| | | | | |
| | Old Regime | New Regime | | |
| Income tax slab | Tax Rate | Tax (Rs.) | Tax Rate | Tax (Rs.) |
| Up to Rs.2,50,000 | 0 | 0 | 0 | 0 |
| 250001 – 500000 | 5 | 12500 | 5 | 12500 |
| 500001 – 750000 | 0 | 0 | 10 | 25000 |
| (-) Rebate | | -12500 | | |
| Sum | | 0 | | 37500 |
| health and education cess | 4 | 0 | 4 | 1500 |
| Tax Payable | | 0 | | 39000 |

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### Author: ![Dinesh](https://avatars.discourse-cdn.com/v4/letter/d/a8b319/32.png) [@Dinesh](https://community.greythr.com/u/Dinesh)
#### Post date: [April 8, 2021, 4:08am UTC](https://community.greythr.com/t/new-or-old-regime-for-deductions-for-life-insurance-elss-and-other-investments/2291/3 "2021-04-08T04:08:19Z")

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Hi @MadhuPR

It purely depends on the salary. But I feel old is better 😉 personal opinion!

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### Author: ![Ram](https://avatars.discourse-cdn.com/v4/letter/r/b9bd4f/32.png) [@Ram](https://community.greythr.com/u/Ram)
#### Post date: [April 8, 2021, 7:36am UTC](https://community.greythr.com/t/new-or-old-regime-for-deductions-for-life-insurance-elss-and-other-investments/2291/4 "2021-04-08T07:36:36Z")

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use the tax calculator in  
[https://www.incometaxindiaefiling.gov.in/Tax\_Calculator/](https://www.incometaxindiaefiling.gov.in/Tax_Calculator/)

to see if the old or new tax regime benefits you.