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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.

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.

Old vs New Tax Regime Photo: Shutterstock. Old vs New Tax Regime Photo: Shutterstock. When the government introduced the new tax regime (NTR) in 2020, it was pitched as a simpler and clearer alternative to the old tax regime (OTR). No more chasing exemptions, less paperwork, and easier compliance – it was hailed for its lower tax rates.

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).

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 straightforwardly choose New Tax Regime. Higher income taxpayers need to evaluate both the options and select the one which is best for them.

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.

How is New regime different from Old Tax regime: New vs Old Tax regime. The new tax regime is different from the old tax regime in three aspects. The new tax regime has more slab rates than the old one, making it more attractive to taxpayers due to the reduced tax structure. The tax rates under the new tax regime are now 0%, 5%, 10%, 15%, 20% ...

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.

The new tax regime is better than the old tax regime for income up to Rs 12 lakh (Rs 12.75 lakh for salaried people), even if one avails of the maximum possible deductions and exemptions of Rs 5,75,000 and 30% of salary as house rent allowance (see table below).

Unlike the old regime, the new tax regime allows limited deductions and exemptions. However, a few key benefits are still available to salaried individuals and employers, as outlined below: Standard Deduction: Rs.75,000/- is available to all salaried individuals (as per Budget 2025 amendments).

The Union Budget 2025 has introduced revised income tax slabs under the new tax regime, providing relief to salaried taxpayers.However, many individuals remain uncertain about whether to opt for the new regime vs old regime tax benefits.This article provides a detailed tax regime comparison, highlighting the difference between old and new tax regime, tax calculations, and the advantages of old ...

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 ...

Income Tax Old Regime vs New Regime: Example Scenarios Income = ₹13 Lakh (Salaried) New Regime: Likely zero or very minimal tax after the standard deduction (₹75,000) since ₹12.75 lakh is tax-free. Old Regime: Could match or beat new regime only if you have large deductions (e.g., total ≥ ₹2–3 lakh in 80C, HRA, etc.).

Complete Guide to Income Tax: New vs. Old Regime for FY 2025-2026. In the dynamic realm of Indian taxation, the Financial Year (FY) 2025-2026 introduces taxpayers to a pivotal choice: the New Tax Regime or the Old Tax Regime. This comprehensive guide is designed to equip you with in-depth knowledge about both systems. Whether you are an ...

This, along with major capital gains tax changes announced in July 2024 mean that you need to look at your financial planning with a new tax lens. Speaking to CNBC-TV18, Mayur Shah, Tax Partner at EY India, and Mohit Gang, Co-Founder and CEO of Moneyfront, broke down how taxpayers should evaluate the new regime versus the old one.

Higher Taxes Beyond ₹12 Lakh: The new tax regime leads to higher taxes for incomes above ₹12 lakh unless deductions under the old regime are maximized. When the Old Regime Wins: If you earn ₹13.75 lakh (without HRA), the old regime results in a lower tax of ₹57,500 compared to ₹75,000 under the new regime—provided you invest ₹5.25 ...

Income Tax New Regime Vs Old Regime: As the assessment year 2025-26 has starts, the ITR filing season 2025 is going to take off soon, with the government likely to notify income tax return forms in a few days. Taxpayers are once again faced with the important choice between the old and new income tax regimes. For the financial year 2024-25 ...

A Comparative Look: Old vs. New Tax Regime. The primary difference lies in the structure: 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.

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 ...