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The new tax regime is now the default option for all taxpayers under the amended Section 115BAC. However, individuals and businesses still retain the choice to opt for the old tax regime if it proves more beneficial for them. Let’s analyse and compare the old and new tax regimes under different scenarios. Slab Rates For FY 2024-25

Comparative Analysis of Income Tax Slabs Under Old vs. New Regime. Let us understand income tax slab rates under the old regime and the new regime using the following illustrations. The following examples also explain the tax slab rates of FY 2025-26 along with FY 2024-25: Case -1: When the Income is Rs.10 lakhs Particulars of Income and Deductions

The old tax regime refers to the system of income tax calculation and slabs that existed before the introduction of the new tax regime. In case of "non-business cases ", option to choose the regime can be exercised every year directly in the ITR to be filed on or before the due date specified under section 139(1).

The Old Tax Regime is the traditional income tax system in India, which allows taxpayers to claim various deductions and exemptions to reduce their taxable income. These include popular benefits such as: Key Features of the Old Tax Regime. Deductions: - Section 80C: Investments in PPF, ELSS, NSC, etc. (up to ₹1.5 lakh). - Section 80D: Premiums paid for health insurance.

However, taxpayers can opt for the old regime. New vs. Old Tax Regime> FAQs 1) What is the difference between the old and new tax regime? Ans: The tax slabs and rates are different in old and new tax regimes. Various deductions and exemptions are allowed in Old tax regime. The new regime offers lower rates of taxes but permits limited deductions

Which Regime to Choose? Old Regime: Beneficial if you can claim significant deductions (e.g., 80C, 80D, home loan interest) and reduce your taxable income considerably.; New Regime: Simplified, with lower tax rates, but suitable if you don’t have many deductions or prefer a hassle-free approach to filing.; Choosing between the old and new regime depends on your income, expenses, and ...

The old regime allows you to reduce your taxable income by claiming various deductions and exemptions, like those for insurance premiums, home loan interest, house rent or travel allowance. The new regime, introduced under Section 115BAC, offers lower tax rates but no other benefits besides a few deductions.

Compare the New and Old Tax Regimes for FY 2025-26. Learn about tax rates, exemptions, deductions, and which regime suits your income and financial goals. ... New Tax Regime vs. Old Tax Regime. Post the above analysis, one thing is crystal clear that taxpayers earning up to INR 12 Lakhs [INR 12.75 in case of salaried taxpayers] should ...

Old Tax Regime Vs. New Tax Regime which one to choose for Financial Year 2025-26 i.e. Assessment Year 2026-27? Summary: The decision between the old and new tax regimes for the Assessment Year 2026-27 largely depends on an individual’s income structure and eligibility for various exemptions and deductions. The old tax regime allows a wide range of deductions, such as standard deductions, HRA ...

Old Regime: Could match or beat new regime only if you have large deductions (e.g., total ≥ ₹2–3 lakh in 80C, HRA, etc.). Income = ₹20 Lakh New Regime: Tax rates from 16–20 lakh = 20%, and you only get ₹75,000 as a standard deduction.

Income Tax Calculator to know the taxes to be paid for a given Income and to compare Old vs New tax regimes (scheme) for IT declaration with your employer or to know your tax exposure. Including Rebate, Marginal Relief for new tax regime, Surcharge, Cess. New Updated per latest Budget 2025 rules

1] Opt for the New Regime If You: Don’t have many deductions to claim. Don’t pay rent or housing loan EMIs. Prefer a simplified tax process. Invest in equities, mutual funds, or other instruments not tied to tax-saving benefits. 2] Stick with the Old Regime If You: Have a home loan, pay rent, or invest regularly in PPF, ELSS, etc.

While presenting the Union Budget 2025, Finance Minister Nirmala Sitharaman modified the income tax slabs as a part of the new tax system. For the upcoming financial year 2025–2026, the new income tax slabs as per the new tax regime will effectively apply from April 1, 2025. Under the new tax system, the income tax slabs have been through a radical transformation. In this article, we will ...

Old Tax Regime. The old tax regime offers more deductions and exemptions compared to the new tax regime, making it a preferred choice for individuals who can take advantage of these benefits. Additionally, the Budget 2025 introduced changes in tax slab rates. The applicable tax slabs under the old regime are as follows:

Old Regime Tax: Rs. 1,52,500; New Regime Tax: Rs. 1,87,500; Verdict: Old regime saves Rs. 35,000; With substantial home loan interest and other deductions, the old regime becomes more beneficial as income increases beyond Rs. 12 lakhs. Case Study 3: Low-Income Earner with Minimal Investments. Income: Rs. 8 lakhs per annum

The choice between the old and new tax regime depends on individual preferences and financial goals. The new regime offers lower tax rates but fewer deductions and exemptions compared to the old regime. Salaried employees should evaluate their specific circumstances and consult with a tax expert to determine which regime is more beneficial for ...

Calculate and compare your income tax under both Old and New Tax Regime for 2025-2026. Updated with latest budget changes, tax slabs, and deductions. Free tax calculator for Indian taxpayers. ... New Tax Regime Changes: FY 2024-25 vs FY 2025-26. Compare tax calculations and savings under the new tax regime for both financial years. Tax Calculator.

Income Tax Slabs FY 2025-25 New versus Old Income Tax Regime: Finance Minister Nirmala Sitharaman announced significant income tax relief for the middle class in the Union Budget 2025, eliminating ...

Clear the confusion between the Old vs New Tax Regime after Budget 2025-26 and learn how the new tax slabs, exemptions and rebate could impact your tax savings. ... Then, calculate the tax based on this adjusted income under the old regime and compare it with the tax you’d pay under the new regime. This comparison will help you decide which ...