ITR Filing 2025: Comparison Between Old Tax And New Tax Regime
ITR Filing 2025: Comparison Between Old Tax And New Tax Regime
The Union Budget 2025 has brought new changes to India’s personal income tax structure. No matter if you are a salaried professional or a self-employed individual, making the correct decision between the old regime and the new regime shall help you optimise the overall tax liability.
This article explores the new tax regime and the old tax regime slabs; it highlights the difference between these two. it will also help you choose which tax regime is best for you.
Income Tax Slab FY 2024-25 (AY 2025-26) for individuals
Old Tax Regime
- Age is Below 60 Years
If your income is:
- Upto Rs. 2,50,000 the rate of tax is Nil
- If Between 2,50,001 to 5,00,000 the rate of tax is 5%.
- If Between 5,00,001 to 10,00,000 the rate of tax is 20%.
- If Above 10,00,000 the rate of tax is 30%.
2.Senior Citizen Age is 60 Years or more but less than 80years (Resident)
If your total income is:
- Up to Rs. 3,00,000 the rate of tax is Nil
- If 3,00,001 to 500,000, the rate of tax is 5%.
- If between 5,00,001 to 10,00,000 the tax rate is 20%.
- If Above 10,00,000 the rate of tax is 30%
3.Super senior citizens Age is 80 Years or more (Resident).
If your total income is:
- Up to Rs 5,00,000, the rate of tax is Nil
- If between 5,00,001 to 10,00,000 the rate of tax is 20%.
- If above 1,000,000, the rate of tax is 30%.
According to The New Tax Regime
For All Ages
If your income is:
- Up to Rs. 3,00,000 the rate of tax is Nil
- If between 3,00,001 to 7,00,000, the rate of tax is 5%.
- If between 7,00,001 and 10,00,000, the rate of tax is 10%.
- If between 10,00,001 to 12,00,000 the rate of tax is 15%.
- If between 12,00,001 to 15,00,000 the rate of tax is 20%.
- If above 1,500,000, the rate of tax is 30%
Exemptions and Deductions status under Old Tax Regime:
| Old Tax Regime | |
| Exemptions / Deductions | Status |
| Standard Deduction for Salaried and Pensioner | Allowed (50000) |
| Deduction for Professional Tax paid | Allowed |
| House Rent Allowance Exemption | Allowed |
| Leave Travel Concession | Allowed |
| Deduction of Interest on Self Occupied House Property up to 2 Lacs | Allowed |
| Deduction of Interest on Let Out Property up to 2 Lacs | Allowed |
| Deduction for Family Pension Up to Rs. 15000 | Allowed |
| Employer’s Contribution to NPS 80CCD(2) | Allowed |
| Employee’s (own) Contribution to NPS | Allowed |
| Deduction Under Section 80C to 80U (e.g., PF, LIC, MF, HL Principal, etc.) 80 TTA (Interest on Saving Accounts Upto Rs.10,000) 80 TTB (Interest for senior citizens upto Rs.50,000) |
Allowed |
| Health and Education Cess | Charged |
| Rebate under Section 87A | 12500 |
| AMT | Applicable |
| Contributions to Agniveer Corpus Fund/Agnipath Scheme | Allowed |
Exemptions and Deductions status under New Tax Regime:
| New Tax Regime | |
| Exemptions / Deductions | Status |
| Standard Deduction for Salaried and Pensioner | Allowed (75000) |
| Deduction for Professional Tax paid | Not Allowed |
| House Rent Allowance Exemption | Not Allowed |
| Leave Travel Concession | Not Allowed |
| Deduction of Interest on Self Occupied House Property up to 2 Lacs | Not Allowed |
| Deduction of Interest on Let Out Property | Allowed |
| Deduction for Family Pension Up to Rs. 15000 | Allowed |
| Employer’s Contribution to NPS 80CCD(2) | Allowed |
| Employee’s (own) Contribution to NPS | Not Allowed |
| Deduction Under Section 80C to 80U (e.g., PF, LIC, MF, HL Principal, etc.) 80 TTA (Interest on Saving Accounts Upto Rs.10,000) 80 TTB (Interest for senior citizens upto Rs.50,000) |
Not Allowed |
| Health and Education Cess | Charged |
| Rebate under Section 87A | 25000 Sub. to MR |
| AMT | Not Applicable |
| Contributions to Agniveer Corpus Fund/Agnipath Scheme | Allowed |