Confused between old and new tax regimes: Here are key factors to help you choose before submitting your ITR, | Mint

OLD US NEW TAX REGIMENT: Confused between the old and new tax regimes for FY 2024-25? Understand important differences such as tax pages, deductions and exemptions to make the best choice. Use income tax computer to compare both regimes and decide what saves you more before submitting your ITR this year. Taxpayers must opt ​​for the old tax regime if they have invested a large amount in tax -free instruments such as PPF, SSY and NSC, among other things. OLD US NEW TAX RIGHTS: As the financial year ended, taxpayers will now start collecting their documents to submit their income tax returns (ITR) before the July 31, 2025 deadline. Just like last year, one key question taxpayers have to ask themselves whether the new tax regime is the right choice for them. The new regime offers franchise tax rates, but does not allow deductions under different terms such as articles 80c, 80d, 80dd and 80g. Here is a manual to help you make an informed decision on what tax regime to choose. What are the differences in tax sheets for FY 2024-25? Under the new tax regime, no income tax is payable on income up to £ 7 lakh, thanks to the discount under section 87A. For earners with higher income, tax is calculated based on the rates of the plate. There is no tax on revenue up to £ 3 lakh. Revenue between £ 3 lakh and £ 7 lakh is taxed at 5 percent, while revenue between £ 7 lakh and £ 10 lakh is taxed at 10 percent. Refer to the full collapse below: Up to £ 3 Lakh zero of £ 3-7 Lakh 5 percent of £ 7-10 Lakh 10 percent of £ 10-12 Lakh 15 percent from £ 12 -15 Lakh 20 percent above £ 15 Lakh 30 percent of the old tax regime’s tax lacquers are as follows: Up to £ 2,5 Lakh Nil 2,5-5-lakh. Lakh 20 percent 10-50 Lakh 30 percent What is the standard deduction allowed under both tax regimes? The standard deduction under the old tax regime is £ 50,000, while under the new tax regime it was raised to £ 75,000 for FY 2024–25. What can you claim and not claim under the new tax regime? You can claim deductions under Chapter VI-A, such as Articles 80C, 80D, 80dd and 80g. However, in terms of the new tax regime, most deductions are not allowed – according to the Articles 80CCD (2), 80Cch and 80jaa, as specified in section 115bac of the Income Tax Act, 1961. Should you opt for new tax regime while submitting the income tax return? The new tax regime is the standard option, so you don’t have to choose it actively. However, if you want to choose the old tax regime, you must choose it specifically. What is the ideal tax regime to choose? There is no definite right or wrong choice – it depends on your income and investments. You can use the income tax computer to determine which regime is more advantageous for you. Visit here for all personal finance updates. First published: 15 Apr 2025, 06:29 pm Ist