ITR 2024-25: If there is confusion in choosing an old and new tax regime, these 5 tips will help...

The new financial year 2024-25 has started from April 1. In such a situation, people have to choose between the new tax regime and the old tax regime. If you do not select any tax regime, the new tax regime will automatically be selected by default.

In such a situation, many people are wondering what is the difference between the old and new tax regime. Today in this article we are going to tell you about those points, which can help you in choosing your tax regime.

New Tax Regime VS Old Tax Regime

     One of the biggest differences between the new and old tax regimes is that under the old tax regime, you get many types of income tax exemptions under 80C, 80D, and 80TTA. At the same time, no such exemption is available in the new tax regime. If you want to take advantage of tax exemption, then the old tax regime will be better for you.

     Only a standard deduction of Rs 50,000 is available as an exemption in the new tax regime. However, this benefit is also given to employed people in the old tax regime.

     Under the new tax regime, income of Rs 7.5 lakh comes under the ambit of tax exemption. In this, a 10 percent discount is available on income between 6 to 9 lakh, 15 percent on income between 9 to 12 lakh, 20 percent on income between 12 to 15 lakh, and 30 percent on income above 15 lakh.

     In the old tax regime, income up to Rs 5 lakh is tax-free. Whereas income of Rs 5 to Rs 10 lakh is taxed at 20 percent and income of more than Rs 10 lakh is taxed at 30 percent.

     If you do not select any tax regime while filing income tax, then the new tax regime will automatically be selected and you will have to deposit tax accordingly.

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