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.

Also Read

Changes in Income Tax Slabs for FY 2024-25 Under the New Tax Regime; Check Before ITR Filing

Income Tax Slab FY 2024-25 (AY 2025-26) for individuals

Old Tax Regime

1. 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%.

[related id="385507Comp"] 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