The existing or old tax regime provides different income tax exemptions and deductions. Hence it turns out to be suitable for most taxpayers. This regime might be better suited to the people belonging to the low-to-middle income group if they make adequate investments in various tax-saving schemes.
However, the new regime might be beneficial for those who have not invested significantly in tax-saving schemes like Life Insurance, Equity Linked Savings Scheme (ELSS), National Pension Scheme (NPS), National Savings Certificate (NSC), Employee Provident Fund (EPF), tax-saving Fixed Deposit (FD), etc.
Furthermore, standard deduction amounting to ₹50000 for salaried individuals and HRA allowance do not apply under this new regime.
Having mentioned all these, one should note that there is no set formula for deciding between these two regimes. One must calculate the total tax outgo according to both the old and new slab rates before deciding.