How to Save Tax on Rs. 18 Lakh Salary in FY26: Old vs New Tax Regime Comparison

How to Save Tax on Rs. 18 Lakh Salary in FY26: Old vs New Tax Regime Comparison

As the income tax filing season for the year 2024-25 kicks in, taxpayers are getting ready with their documents to file ITR. The government has extended the last date to file tax returns from July 31 to September 15 to help more people file ITR on time. Taxpayers can opt for the old tax regime or the new tax regime according to their salary and deductions.

For the financial year 2025-26, the new tax regime is a bit different. People having an income of Rs 12.75 lakh will not have to pay tax on their income. However, in the old tax regime, the tax-free limit is only Rs 5.5 lakh. There is a difference of Rs 7.25 lakh.

Because of this, many might believe the old system is not good. However, one can save taxes in many ways using the old regime, especially someone earning Rs. 18 lakh a year.