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A taxpayer can switch to the old income tax regime while filing the Income Tax Return (ITR), subject to certain conditions and procedural requirements laid down under the Income Tax Act, 1961.

From a slew of deductions in the old regime to some surprising ones in the new regime, here is a look at your options for income tax savings

April is the month when your employer asks you to choose between the old and new tax regime for TDS on salary for FY 2025-26. Read on to know the calculations for deciding the best tax regime to reduce TDS on salary for the new financial year.

The new tax regime is now the default option. If you wish to continue with the old tax regime, you must inform your employer. Evaluate your investments and deductions before deciding.

The new tax regime also offers a higher standard deduction. Last year, it was raised from Rs 50,000 to Rs 75,000 for salaried employees. In the old regime, the standard deduction remains at Rs 50,000.

However, there’s a crucial caveat. This flexibility to change regimes is only available if the ITR is filed on or before the due date. If a taxpayer files a belated return—after the deadline—the ITR will be filed only under the new tax regime. The income tax portal will not allow a switch to the old regime in such cases.

CBDT has announced several changes in the ITR forms this including that in ITR-1 (SAHAJ) and ITR-4. Here are 6 Changes regarding ITR-1 (SAHAJ) that salaried individuals should know.

Delhi High Court says tax reassessments beyond three years are invalid under both old and new regimes.

Under the new tax regime, there is a small tax exemption of Rs 3,500 per financial year available on the interest earned from a post office savings account. This exemption falls under Section 10(15)(i) of the Income-tax Act.

Every salaried class person living in the country has to pay income tax. The tax regime is decided by the Income Tax Department. The tax has to be paid according to this. The Income Tax Department has created five new methods under the New Tax Regime,

Under the new income tax regime, taxpayers can now avail of a standard deduction of up to Rs 75,000, which makes an annual income of up to Rs 12.75 lakh tax-free. This deduction brings a significant relief for many taxpayers, as it reduces the taxable income further.

From new disclosures related to deductions and the new tax regime to improved clarity in reporting income sources, these changes aim to make compliance easier and more transparent.

Old tax regime, however, still offers taxpayers a range of options to save taxes through various eligible deductions and exemptions post 2025 Union Budget. On the other hand, the new tax regime has a fewer deductions available for taxpayers compared to the old regime.

Higher Income Brackets: For people with annual incomes above Rs 24 lakh, both regimes apply the same top tax rate of 30%. But the old regime allows this group to reduce their taxable income significantly through various exemptions. This can translate into considerable tax savings in comparison to the new system.

Salaried and self-employed individuals can use HRA exemption under Section 10 (13A) and Section 80GG, respectively. HRA helps you save significant amount of tax if you are living in metro cities.

A breakdown of deductions, exemptions, savings under the old and new systems will help you manage your finances