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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.

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).

While both the old and new regimes have merits and demerits, it can be cumbersome for taxpayers to pick the best-suited tax regime. Here is a simplified assessment of both regimes to answer a few ...

Old Tax Regime. The tax system that existed before the implementation of the new regime is the old tax regime. Approximately 70 exclusions and deductions are available under this system, including HRA and LTA, that can reduce your taxable income and minimise your tax payments.

Old Tax Regime vs New Tax Regime: Which One Should You Choose? The changes announced for FY24 make the new tax regime a compelling option for two sets of people. It is an obvious choice for those with income below ₹ 7 lakh (or ₹ 7.5 lakh for those with salary income as they avail an additional ₹ 50,000 as Standard Deduction).

The tax department will calculate their income tax liability based on the existing/old tax regime up to AY 2023-24. However as in Budget 2023 new regime is announced as default, from AY 2024-25 ITD shall process ITR under old tax regime if not specifically opted for old 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.). In contrast, the new tax regime offers lower tax rates but restricts most deductions, making it simpler but potentially less beneficial for those with significant ...

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.).

What is the Old Tax Regime? The old tax regime has been in place for a long time and allows taxpayers to claim various deductions and exemptions. Some of the most common deductions include: Section 80C – Deduction up to Rs1.5 lakh on investments like PPF, LIC, EPF, etc. Section 80D – Deduction for health insurance premium.

What Is the Old Tax Regime? The old tax regime gives you the power of deductions and exemptions. It’s perfect for those who love saving, investing, and tax planning. Some key features include: Section 80C: Deduction up to ₹1.5 lakhs for investments like PPF, ELSS, LIC. HRA: House Rent Allowance deduction. LTA: Leave Travel Allowance. Section 80D: Deduction for health insurance premiums

Old tax vs New Tax regime: Individuals can avail revised tax slabs in the new income tax regime from financial year 2025-26. Here is a thorough comparison of which income tax regime will be ...

The new tax regime has lower tax rates but fewer deductions and exemptions compared to the old tax regime. The old tax regime has more deductions and exemptions but higher tax rates. Calculate income tax liabilities for yourself using an income tax calculator and talk to a professional before choosing a regime.

The old tax regime slabs are fewer than new tax regime slabs. Tax Slabs in the Old Regime. The old tax regime featured a progressive tax structure with multiple income tax slabs in India based on an individual’s annual income. The old tax regime slabs for individual taxpayers below 60 years of age are as follows: Income up to Rs. 2.5 lakh: No tax

Understanding the Old Tax Regime. The old tax regime allows taxpayers to enjoy several exemptions and deductions aimed at reducing their taxable income. It exempts income up to Rs.2.5 Lakh, while the maximum rate applies on income above Rs.15 Lakh at 30%. Tax Rates Under the Old Tax Regime . The old tax slabs remain unchanged for FY 2025-26 as ...

The old tax regime and new tax regime refer to two different sets of income tax rules available to individual taxpayers in India. The old tax regime is the traditional tax structure that has been in place for many years. Under the old tax regime, taxpayers can claim various deductions and exemptions available under the Income Tax Act to reduce ...

The old regime still remains a wise selection for taxpayers who prioritise tax planning and prefer to maximise available allowances. Moneycontrol World Desk first published: May 3, 2025 04:43 pm

Tax season can be confusing, and choosing the right tax regime is crucial to saving money. Earlier, taxpayers had only one way to file taxes, but since 2020, the government has introduced two options: The Old Tax Regime and the New Tax Regime. Each has its pros and cons, and making the wrong choice can cost you extra money.

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 ...

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).