As the Income Tax Return (ITR) filing season for FY 2024–25 (AY 2025–26) approaches, one major question that taxpayers are asking is:
👉 Should I choose the Old Tax Regime or the New Tax Regime?
Let’s break down the differences and help you decide which one could be more beneficial for you this year.
⚖️ Key Difference Between Old and New Tax Regime
🔄 Standard Deduction:
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Old Regime: Not applicable unless eligible under specific heads.
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New Regime: ₹50,000 standard deduction (introduced in Budget 2023 for salaried taxpayers)
🧮 Which Deductions are Allowed?
| Deduction | Old Regime | New Regime |
|---|---|---|
| 80C (LIC, PPF, ELSS, etc.) | ✅ Yes | ❌ No |
| 80D (Health Insurance) | ✅ Yes | ❌ No |
| HRA, LTA, Housing Loan Interest | ✅ Yes | ❌ No |
| NPS (80CCD), Education Loan (80E) | ✅ Yes | ❌ No |
💡 Who Should Choose What?
✅ Old Regime is Better If:
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You claim deductions over ₹3 lakh (via 80C, 80D, HRA, etc.)
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You have a home loan or significant tax-saving investments
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You have a high salary with various allowances
✅ New Regime is Better If:
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You don’t have many deductions to claim
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You are a freelancer, consultant, or in early employment
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You prefer simpler filing with lower paperwork
📌 Important Updates for FY 2024-25
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New Tax Regime is now the default.
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You need to opt-out explicitly if you wish to file under the old regime.
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Standard Deduction of ₹50,000 now applies in the New Regime for salaried individuals.
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Rebate under Section 87A increased to ₹7 lakh in the new regime.
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That means if your income is up to ₹7 lakh, you pay zero tax under the new regime.
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📋 How to Choose the Right Regime?
Before filing your ITR:
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Calculate tax liability under both regimes
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Compare the tax payable
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Use official tax calculators or consult a tax advisor.
🧑💼 Need Help Filing Your ITR?
At BusinessRights, our tax experts can help you:
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Choose the best tax regime
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Maximize your savings
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File your ITR accurately and on time
Get in touch today!
📞 +918286587999 📧 support@businessrights.in | 🌐 www.businessrights.in