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The new tax regime is a simplified tax structure introduced in Budget 2020, under which taxpayers can pay lower taxes but have to forego maximum deductions and exemptions. The new tax regime has lower tax rates than the old regime but eliminates the tax benefits of various investments and expenses.

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 Regime Example

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 ...

Is there any difference in tax rebate under section 87A in old and new tax regime? In the old tax regime in case of a resident individual, whose total income does not exceed Rs. 5,00,000/- there is rebate of 100 percent of income tax subject to a maximum of Rs. 12,500/.

If an individual/HUF opts for new tax regime for FY 2020-21, then form 10-IE has to be filed to inform the tax department that one is choosing the new tax regime. As per the income tax laws, an individual having business income shall submit this form before the due date of filing ITR i.e. July 31 (unless extended by the government) if Tax Audit ...

Explore the differences between the old and new tax regimes in India. Learn about the key features, benefits, and which option suits your financial situation best. ... Old Tax Regime. New Tax Regime (Budget 2025) Basic Exemption Threshold ₹2.5 lakh ₹12 lakh (₹12.75 lakh for salaried) Tax Slabs. 5%, 20%, 30% beyond their thresholds.

However, eligible taxpayers can choose to opt out of the new tax regime and continue under the old one. About Old vs New Tax Regime. The old tax regime refers to the previous income tax system, which follows the earlier tax slabs and allows for various deductions and exemptions (under Section 80C, 80D, HRA, etc.).

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.

Compare the New Tax Regime vs. Old Tax Regime for FY 2025-26 (AY 2026-27), including tax slabs, deductions, exemptions, and eligibility criteria. ... Below are some frequently asked questions (FAQs) to help taxpayers understand the differences and implications of both tax regimes. ...

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.). ... The decision to opt for the Old or New Tax Regime should align with your financial habits, goals, and ability to claim deductions. While the Old ...

An in-depth analysis of the old regime shows how it encourages savings habits, besides offering advantages as senior citizen benefits under Section 80TTB, among some of its other positive aspects. The new tax regime tries to simplify the tax filing process, especially benefitting individuals falling under low-income slabs.

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).

For income beyond ₹13,50,000, the difference between tax liability under old and new regime goes on rising till the gross income crosses ₹24,75,000. After this point, the difference in tax liability becomes constant, as the tax rate is 30% for both the regimes. ... With the comparative analysis laid out, the decision between the Old and New ...

Check out the critical difference between the new and old tax regimes. Refer to the old tax vs new tax regime guide to know about several exemptions & deductions. ... Unlike those who opt for the old tax regime, the new tax regime does not allow taxpayers to claim common exceptions. This is discussed in the article later. However, the FM did ...

Difference Between Old Tax Regime and New Tax Regime. The new regime allows a standard deduction of Rs.50,000 for all salaried persons and a deduction for family pension which may be Rs.15,000 or 1/3rd of the pension. At the same time, those who stand to claim a higher amount of exemptions must continue with the old regime.

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.

When it comes to Income Tax, many people are confused between the old tax regime and the new one. Old regime is known as the Normal Tax regime, while New Regime is known as the Default Tax Regime under the Income Tax Act,1961. With both options available in FY 2024-25, it’s important to understand what suits your income and lifestyle best.

Salary income: The standard deduction of INR 75,000 will continue for new regime taxpayers, compared to INR 50,000 under the old tax regime. The new tax regime provides a total rebate of INR ...

Old Vs. New Tax Regime: Should I choose old tax regime or new? Under the new tax regime, tax rates have been rationalised into five tax slabs ranging from 0% to 30%. The total tax you pay after or without deductions from your annual income, health insurance, etc., also differs based on your source of income.