Old Tax Regime

The Old Tax Regime is India's original income tax structure, allowing numerous exemptions and deductions — HRA, LTA, and Section 80C investments among them — in exchange for comparatively higher tax rates than the New Regime.

It tends to benefit employees with significant tax-saving investments, home loan EMIs, or high rent payments, since those deductions can meaningfully lower taxable income. The New Regime is the default, so employees choose the Old Regime afresh each year.

For most salaried employees, choosing the Old Regime just means ticking "opting out of the new regime" on the ITR — no separate form is needed. Form 10-IEA is only required for taxpayers with business or professional income, and for them the choice is a once-in-a-lifetime switch rather than an annual one.