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Income Tax New Regime Vs Old Regime For AY 2025-26: Even as the income tax department has notified ITR-1, ITR-3, ITR-4 and ITR-5 forms, the income tax return filing for AY 2025-26 (FY 2024-25) is expected to start soon. While filing the ITR, salaried individuals, professionals, and pensioners must again make a key decision: stick with the new ...

Under the new tax regime, the taxpayer will also save Rs 60,000 at the income level of Rs 24 lakh. Under the old tax system, his income tax liability after investing the maximum possible Rs 5.25 lakh in savings schemes would be Rs 3.60 lakh, as against Rs 3 lakh in the old scheme.

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:

Additionally, the new tax regime also offers a standard deduction of INR 75,000 to salaried individuals. Thus, this makes the zero-tax threshold to INR 12.75 Lakhs in case of salaried individuals. Income Tax Slab rates for FY 2025-2026 (AY 2026-2027) under Old Tax Regime ...

Says Suresh Surana, a Mumbai-based chartered accountant: “The new tax regime suits individuals with fewer deductions or those who may lack motivation for long-term savings, such as Public Provident Fund (PPF), National Savings Certificate (NSC), or tax-saving fixed deposits (FDs) and prefer to invest in other investment instruments, such as equities and exchange-traded funds (ETFs), among ...

New Tax Regime vs. Old Regime: A Quick Guide for Salaried Individuals in FY 2025-26. With the new Financial Year 2025-26 starting April 1, 2025, and the income tax slab and rate changes from Budget 2025-26 now in effect, salaried employees face the important decision of choosing between the old and new tax regimes. This choice impacts their ...

The new tax regime has arrived, replacing the old labyrinth of exemptions and deductions with a cleaner, more direct approach. Sounds good? Well, not so fast. It’s not a one-size-fits-all solution. For taxpayers, choosing between the old and the new is tricky. Each system offers different benefits.

In the new tax regime can I claim deductions under chapter-VIA like section 80C, 80D, 80DD, 80G etc. while filing the ITR for AY 2024-25? In new tax regime, Chapter-VIA deductions cannot be claimed, except deduction u/s 80CCD(2)/80CCH/80JJAA as per the provision of Section 115BAC of the Income Tax Act, 1961. In case, taxpayer wants to claim any ...

Since 2023, the New Tax Regime has been the default option, but taxpayers can still opt for the Old Regime if it benefits them more. Tax Slabs Comparison for 2025 Old Tax Regime. Up to Rs.2.5 lakh: No tax; Rs.2.5 lakh – Rs.5 lakh: 5% (Rebate available under Section 87A up to Rs.5 lakh income)

While there are limited exemptions available under the new tax regime, taxpayers with a gross income exceeding Rs 24.75 lakhs will find the new tax regime beneficial if their total deductions and ...

New tax regime vs old, which is better, is a tough question to answer since there's no one correct answer. The choice of switching to the new tax regime or staying in the old tax regime, or whether the regime is best for you, must be based on the tax savings deductions and exemptions available in the previous tax system.

The new tax regime, introduced under Section 115BAC of the Income Tax Act, 1961, was designed to simplify taxation with reduced tax rates. Written by PF Desk Updated: February 1, 2025 10:55 IST

The new tax regime tries to simplify the tax filing process, especially benefitting individuals falling under low-income slabs. It is often advised to take the help of tax experts before opting for one of the two options available. It is crucial to inform the employer of your chosen tax regime to make sure that the correct tax is deducted at ...

The new tax regime offers a simplified tax structure with limited deductions compared to the old regime. While you can't claim popular deductions like those under Section 80C, you can still avail a standard deduction of ₹75,000 for the financial year 2024-25. Additionally, family pensioners can claim a deduction of ₹25,000.

New vs old tax regime TDS on salary: 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 regime, undoubtedly, aims to improve tax compliance. It simplifies the process of filing returns, and the chances of errors and misreporting are minimised. It aims to create a streamlined approach for the taxpayers, leading to long term tax compliance and certainty. With the new direct tax code being slated to be announced in the coming ...

Prior to the filing of income tax returns, it is necessary to compare both the old and new tax regimes to see which one provides the least tax outgo. Taxpayers (except those who are earning from business) have been able to opt between the two tax regimes since 2020, with the new tax regime being the default under the Finance Act, 2023. The ...

During the fiscal year 2025-26, commencing from April 1, 2025, the New Tax Regime will introduce revised income tax brackets. This includes a tax rebate of Rs 60,000 for incomes up to Rs 12 lakh ...

Old Tax Regime: Higher tax rates, offset by a plethora of exemptions and deductions (such as Section 80C, 80D, HRA, Interest on Home Loan, etc.). New Tax Regime: Lower tax rates but no exemptions or deductions. Here’s a quick snapshot of the income slabs and tax rates under the New Tax Regime (as per the 2024 Union Budget figures):