New Vs Old Tax Regime: 8 Things To Know

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Reduced Tax Rates

The New Tax Regime has lower tax rates than the Old regime.

Reduced Tax Rates

Lowest Tax Slab

The lowest tax slab in the new regime is Rs 0-3 lakh; in the old regime, it is Rs 0-2.5 lakh.

Lowest Tax Slab

Number of Tax Slabs

The new regime has 6 tax slabs, with the last slab for income above Rs 15 Lakh; the old has 4 slabs, with the last slab above Rs 10 lakh.

Number of Tax Slabs

Exemptions & Deductions

Unlike the old system, the new regime excludes exemptions and deductions, such as TA, HRA, standard deduction, home loan interest, etc.

Exemptions & Deductions

Which is Better For You

Calculate the tax liability under old and new regimes to select the best option.

Which is Better For You

Belated Tax Return

Belated return filing is similar to ITR filing. You must pay a penalty of Rs 1,000 if the annual income is less than Rs 5 lakh and Rs 5,000 if it is more under Section 234F.

Belated Tax Return

ITR In New Regime

Individuals must choose Form 10-IE to file ITR under ‘Profits and Gains of Business and Profession’ income and report separately under head salary and PGBP.

ITR In New Regime

Option To Switch

Taxpayers can switch between old and new regimes during ITR filing.

Compiled By Himani Verma

Option To Switch

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