The new tax regime is a simplified tax system with lower slab rates, but it removes most deductions and exemptions like HRA or 80C. It's now the default option for every taxpayer, though you can still choose the old regime if it works out cheaper for you.

It depends on how many deductions you claim. If you have high HRA, home loan interest, or 80C investments, the old regime may still save you more; with fewer deductions, the new regime's lower rates usually work out cheaper.

If you're a salaried employee with no business income, yes — you can pick either regime every single year when filing your return. If you have business or professional income, you can switch back to the old regime only once in your lifetime.

Yes, the Section 87A rebate makes taxable income up to ₹12,00,000 completely tax-free under the new regime for FY 2025-26. For salaried individuals, this effectively goes a bit further because of the ₹75,000 standard deduction.

Very few deductions carry over. Salaried employees still get the ₹75,000 standard deduction and the employer's NPS contribution, but popular ones like 80C, HRA, and home loan interest on a self-occupied house are not allowed.

Your income is taxed slab by slab, so each portion is taxed at its own rate rather than your whole income at the highest rate you touch. A 4% health and education cess is added on top, and the Section 87A rebate can bring your final tax to zero if taxable income is ₹12 lakh or below.