{"id":29113,"date":"2025-04-07T00:19:25","date_gmt":"2025-04-06T18:49:25","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=29113"},"modified":"2025-08-20T18:05:41","modified_gmt":"2025-08-20T12:35:41","slug":"comparison-of-deduction-old-regime-vs-new-regime-fy-2024-25","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/comparison-of-deduction-old-regime-vs-new-regime-fy-2024-25\/","title":{"rendered":"Comparison of Deduction: Old Regime vs New Regime FY 2024-25"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e16f2cec286\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e16f2cec286\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/comparison-of-deduction-old-regime-vs-new-regime-fy-2024-25\/#Quick_breakdown_for_Choosing_Old_or_New_Tax_Regime_for_FY_2025-26_AY_2026-27\" title=\"Quick breakdown for\u00a0Choosing Old or New Tax Regime for\u00a0FY 2025-26 (AY 2026-27)\">Quick breakdown for\u00a0Choosing Old or New Tax Regime for\u00a0FY 2025-26 (AY 2026-27)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/comparison-of-deduction-old-regime-vs-new-regime-fy-2024-25\/#Choose_wisely_for_Lower_TDS\" title=\"Choose wisely for Lower TDS\">Choose wisely for Lower TDS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/comparison-of-deduction-old-regime-vs-new-regime-fy-2024-25\/#What_to_consider_before_declaring_New_vs_Old_Tax_Regime_TDS_on_Salary_FY_2025-26\" title=\"What to consider before declaring:\u00a0New vs Old Tax Regime: TDS on Salary (FY 2025-26)\">What to consider before declaring:\u00a0New vs Old Tax Regime: TDS on Salary (FY 2025-26)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/comparison-of-deduction-old-regime-vs-new-regime-fy-2024-25\/#Quick_Comparison_Salary_up_to_INR_1275_lakh\" title=\"Quick Comparison: Salary up to INR 12.75 lakh\">Quick Comparison: Salary up to INR 12.75 lakh<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/comparison-of-deduction-old-regime-vs-new-regime-fy-2024-25\/#What_Should_You_Do_in_April\" title=\"What Should You Do in April?\">What Should You Do in April?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/comparison-of-deduction-old-regime-vs-new-regime-fy-2024-25\/#Comparison_of_Deductions_Old_Regime_vs_New_Regime_FY_2024-25\" title=\"Comparison of Deductions: Old Regime vs New Regime (FY 2024-25)\">Comparison of Deductions: Old Regime vs New Regime (FY 2024-25)<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/comparison-of-deduction-old-regime-vs-new-regime-fy-2024-25\/#Tax_Slabs_Comparison\" title=\"Tax Slabs Comparison\u00a0\">Tax Slabs Comparison\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/comparison-of-deduction-old-regime-vs-new-regime-fy-2024-25\/#_Key_Consideration_Tips\" title=\"\u00a0Key Consideration\u00a0Tips\u00a0:\">\u00a0Key Consideration\u00a0Tips\u00a0:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/comparison-of-deduction-old-regime-vs-new-regime-fy-2024-25\/#Checklist_for_Salaried_Employee_in_New_Regime_FY_2025-26\" title=\"Checklist for Salaried Employee in New Regime (FY 2025-26)\">Checklist for Salaried Employee in New Regime (FY 2025-26)<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/comparison-of-deduction-old-regime-vs-new-regime-fy-2024-25\/#Key_Improvements_in_FY_2025%E2%80%9326_vs_FY_2024%E2%80%9325\" title=\"Key Improvements in FY 2025\u201326 vs FY 2024\u201325:\">Key Improvements in FY 2025\u201326 vs FY 2024\u201325:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/comparison-of-deduction-old-regime-vs-new-regime-fy-2024-25\/#Still_Not_Allowed_in_FY_2025%E2%80%9326\" title=\"Still Not Allowed in FY 2025\u201326:\">Still Not Allowed in FY 2025\u201326:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/comparison-of-deduction-old-regime-vs-new-regime-fy-2024-25\/#Still_Allowed_both_FYs\" title=\"Still Allowed (both FYs):\">Still Allowed (both FYs):<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/comparison-of-deduction-old-regime-vs-new-regime-fy-2024-25\/#Conclusion\" title=\"Conclusion:\">Conclusion:<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 data-start=\"167\" data-end=\"241\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-29062\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/03\/high.jpg\" alt=\"Tax Dept intensified scrutiny\" width=\"919\" height=\"565\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/03\/high.jpg 800w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/03\/high-300x185.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/03\/high-768x472.jpg 768w\" sizes=\"(max-width: 919px) 100vw, 919px\" \/><\/h2>\n<h2 data-start=\"167\" data-end=\"241\"><span class=\"ez-toc-section\" id=\"Quick_breakdown_for_Choosing_Old_or_New_Tax_Regime_for_FY_2025-26_AY_2026-27\"><\/span><span style=\"color: #000080;\">Quick breakdown for\u00a0Choosing Old or New Tax Regime for\u00a0<strong data-start=\"67\" data-end=\"94\">FY 2025-26 (AY 2026-27)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"167\" data-end=\"241\"><span style=\"color: #000080;\"><strong>Choosing Old or New Tax Regime for FY 25-26: Time to declare to employer\u00a0<\/strong><\/span><\/p>\n<p data-start=\"102\" data-end=\"158\">it\u2019s a crucial time for salaried individuals to optimize TDS deductions for FY 2025-26. Choosing Old vs New Tax Regime for FY 2025-26, Employees must declare their tax regime choice to their employer at the start of the financial year to ensure accurate TDS deductions on salary income .\u00a0Deadline:\u00a0Ideally, before the first payroll of FY 2025-26 (i.e., April 2025 salary processing). Can\u2019t change during the year with employer, but you can switch while filing ITR. Your employer calculates monthly TDS based on the regime you declare. Wrong choice = higher TDS + refund wait after ITR filing.<\/p>\n<h2 data-start=\"102\" data-end=\"158\"><span class=\"ez-toc-section\" id=\"Choose_wisely_for_Lower_TDS\"><\/span><span style=\"color: #000080;\"><strong>Choose wisely for Lower TDS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"102\" data-end=\"158\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-29115\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/Choosing-Old-or-New-Tax-Regime-for-FY-25-26-Time-to-declare-to-employer-Choose-wisely-for-Lower-TDS.jpg\" alt=\"Choosing Old vs New Tax Regime for FY 2025-26\" width=\"875\" height=\"1750\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/Choosing-Old-or-New-Tax-Regime-for-FY-25-26-Time-to-declare-to-employer-Choose-wisely-for-Lower-TDS.jpg 296w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/Choosing-Old-or-New-Tax-Regime-for-FY-25-26-Time-to-declare-to-employer-Choose-wisely-for-Lower-TDS-150x300.jpg 150w\" sizes=\"(max-width: 875px) 100vw, 875px\" \/><\/p>\n<h2 data-start=\"713\" data-end=\"758\"><span class=\"ez-toc-section\" id=\"What_to_consider_before_declaring_New_vs_Old_Tax_Regime_TDS_on_Salary_FY_2025-26\"><\/span><span style=\"color: #000080;\"><strong data-start=\"720\" data-end=\"757\">What to consider before declaring<\/strong>:\u00a0<strong data-start=\"279\" data-end=\"332\">New vs Old Tax Regime: TDS on Salary (FY 2025-26)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"overflow-x-auto contain-inline-size\">\n<table data-start=\"760\" data-end=\"1739\">\n<thead data-start=\"760\" data-end=\"901\">\n<tr data-start=\"760\" data-end=\"901\">\n<th data-start=\"760\" data-end=\"797\"><span style=\"color: #000080;\">Criteria<\/span><\/th>\n<th data-start=\"797\" data-end=\"848\"><span style=\"color: #000080;\">Old Regime<\/span><\/th>\n<th data-start=\"848\" data-end=\"901\"><span style=\"color: #000080;\">New Regime (default)<\/span><\/th>\n<\/tr>\n<\/thead>\n<tbody data-start=\"1043\" data-end=\"1739\">\n<tr data-start=\"1043\" data-end=\"1183\">\n<td>Claiming Deductions (80C, 80D, etc.)<\/td>\n<td>\u2705 Yes \u2013 ideal if deductions &gt; \u20b93L<\/td>\n<td>\u274c No major deductions allowed<\/td>\n<\/tr>\n<tr data-start=\"1184\" data-end=\"1322\">\n<td>Home Loan \/ HRA \/ NPS<\/td>\n<td>\u2705 All allowed<\/td>\n<td>\u274c Not available<\/td>\n<\/tr>\n<tr data-start=\"1323\" data-end=\"1461\">\n<td>Standard Deduction<\/td>\n<td>\u2705 \u20b950,000<\/td>\n<td>\u2705 \u20b950,000<\/td>\n<\/tr>\n<tr data-start=\"1462\" data-end=\"1600\">\n<td>Simplicity<\/td>\n<td>\u274c Slightly complex<\/td>\n<td>\u2705 Very simple<\/td>\n<\/tr>\n<tr data-start=\"1601\" data-end=\"1739\">\n<td>TDS Impact<\/td>\n<td>Less if declaring all deductions<\/td>\n<td>Less by default if no deductions<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<hr class=\"\" data-start=\"1741\" data-end=\"1744\" \/>\n<h2 class=\"\" data-start=\"1635\" data-end=\"1687\"><span class=\"ez-toc-section\" id=\"Quick_Comparison_Salary_up_to_INR_1275_lakh\"><\/span><span style=\"color: #000080;\"><strong data-start=\"1641\" data-end=\"1687\">Quick Comparison: Salary up to INR 12.75 lakh<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"\" data-start=\"1689\" data-end=\"1740\">If your gross salary is \u2264 INR 12.75 lakh, you can Claim Standard Deduction of INR 50,000 and Claim Employer\u2019s NPS contribution (say INR 25,000)<\/p>\n<p class=\"\" data-start=\"1840\" data-end=\"2044\">Effective Net Taxable Income: INR 12L<\/p>\n<p class=\"\" data-start=\"1840\" data-end=\"2044\">Tax Payable under New Regime: Zero, thanks to Section 87A rebate (for income up to INR 7 lakh, plus benefit extended by slab tweaks up to INR 7.5 lakh).<\/p>\n<p class=\"\" data-start=\"2046\" data-end=\"2111\">Result:\u00a0 New Regime may be better for most in this bracket.<\/p>\n<p data-start=\"2750\" data-end=\"2793\"><span style=\"color: #000080;\"><strong data-start=\"2757\" data-end=\"2793\">Old Regime Tax (with Deductions)<\/strong><\/span><\/p>\n<p class=\"\" data-start=\"2794\" data-end=\"2893\">You\u2019ll need deductions (like 80C, 80D, HRA, home loan interest, etc.) to bring taxable income down.\u00a0Breakeven Deduction = Approx. INR 3.75\u2013INR 4.25 lakh for INR 20L income \u00a0If your deductions exceed this, Old Regime is better , But No, If your deductions are less, New Regime is better<\/p>\n<h2 class=\"\" data-start=\"3618\" data-end=\"3655\"><span class=\"ez-toc-section\" id=\"What_Should_You_Do_in_April\"><\/span><span style=\"color: #000080;\"><strong data-start=\"3623\" data-end=\"3655\">What Should You Do in April?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"334\" data-end=\"364\">Why April Matters :\u00a0April is when employers ask employees to declare their preferred tax regime to compute TDS for the year. The choice you make now directly impacts your monthly in-hand salary. step to be taken care,<\/p>\n<ul data-start=\"3657\" data-end=\"3978\">\n<li class=\"\" data-start=\"3657\" data-end=\"3722\">\n<p class=\"\" data-start=\"3660\" data-end=\"3722\">Estimate your deductions (HRA, 80C, 80D, 24(b), NPS, etc.)<\/p>\n<\/li>\n<li class=\"\" data-start=\"3723\" data-end=\"3826\">\n<p class=\"\" data-start=\"3726\" data-end=\"3826\">Use an <a target=\"_new\" rel=\"noopener\" data-start=\"3733\" data-end=\"3826\">Income Tax Calculator<\/a><\/p>\n<\/li>\n<li class=\"\" data-start=\"3827\" data-end=\"3898\">\n<p class=\"\" data-start=\"3830\" data-end=\"3898\">Choose the regime that results in lower tax for TDS purposes<\/p>\n<\/li>\n<li class=\"\" data-start=\"3899\" data-end=\"3978\">\n<p class=\"\" data-start=\"3902\" data-end=\"3978\">Submit your declaration to your employer (possibly along with Form 12BB)<\/p>\n<\/li>\n<\/ul>\n<h2 data-start=\"167\" data-end=\"241\"><span class=\"ez-toc-section\" id=\"Comparison_of_Deductions_Old_Regime_vs_New_Regime_FY_2024-25\"><\/span><span style=\"color: #000080;\">C<strong data-start=\"174\" data-end=\"241\">omparison of Deductions: Old Regime vs New Regime (FY 2024-25)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Here\u2019s a clear comparison of deductions under the old vs. new tax regime for FY 2024-25 (AY 2025-26) to help you evaluate which regime may be better for you:<\/p>\n<div class=\"overflow-x-auto contain-inline-size\">\n<table data-start=\"243\" data-end=\"2575\">\n<thead data-start=\"243\" data-end=\"399\">\n<tr data-start=\"243\" data-end=\"399\">\n<th data-start=\"243\" data-end=\"290\"><strong data-start=\"245\" data-end=\"260\">Particulars<\/strong><\/th>\n<th data-start=\"290\" data-end=\"344\"><strong data-start=\"292\" data-end=\"306\">Old Regime<\/strong><\/th>\n<th data-start=\"344\" data-end=\"399\"><strong data-start=\"346\" data-end=\"360\">New Regime<\/strong> <em data-start=\"361\" data-end=\"372\">(Default)<\/em><\/th>\n<\/tr>\n<\/thead>\n<tbody data-start=\"556\" data-end=\"2575\">\n<tr data-start=\"556\" data-end=\"711\">\n<td><strong data-start=\"558\" data-end=\"597\">Standard Deduction (Salary\/Pension)<\/strong><\/td>\n<td>INR 50,000<\/td>\n<td>\u2705 INR 50,000 (from FY 2023-24 onwards)<\/td>\n<\/tr>\n<tr data-start=\"712\" data-end=\"866\">\n<td><strong data-start=\"714\" data-end=\"744\">HRA (House Rent Allowance)<\/strong><\/td>\n<td>\u2705 Allowed (subject to conditions)<\/td>\n<td>\u274c Not Allowed<\/td>\n<\/tr>\n<tr data-start=\"867\" data-end=\"1021\">\n<td><strong data-start=\"869\" data-end=\"901\">LTA (Leave Travel Allowance)<\/strong><\/td>\n<td>\u2705 Allowed<\/td>\n<td>\u274c Not Allowed<\/td>\n<\/tr>\n<tr data-start=\"1022\" data-end=\"1176\">\n<td><strong data-start=\"1024\" data-end=\"1062\">Section 80C (LIC, PPF, ELSS, etc.)<\/strong><\/td>\n<td>\u2705 Up to INR 1.5 lakh<\/td>\n<td>\u274c Not Allowed<\/td>\n<\/tr>\n<tr data-start=\"1177\" data-end=\"1331\">\n<td><strong data-start=\"1179\" data-end=\"1213\">Section 80D (Health Insurance)<\/strong><\/td>\n<td>\u2705 Up to INR 25,000 \/ INR 50,000 (senior citizen)<\/td>\n<td>\u274c Not Allowed<\/td>\n<\/tr>\n<tr data-start=\"1332\" data-end=\"1486\">\n<td><strong data-start=\"1334\" data-end=\"1378\">Section 80TTA \/ 80TTB (Savings Interest)<\/strong><\/td>\n<td>\u2705 INR 10,000 \/ INR 50,000 (senior citizens)<\/td>\n<td>\u274c Not Allowed<\/td>\n<\/tr>\n<tr data-start=\"1487\" data-end=\"1641\">\n<td><strong data-start=\"1489\" data-end=\"1530\">Section 80E (Education Loan Interest)<\/strong><\/td>\n<td>\u2705 Allowed<\/td>\n<td>\u274c Not Allowed<\/td>\n<\/tr>\n<tr data-start=\"1642\" data-end=\"1796\">\n<td><strong data-start=\"1644\" data-end=\"1682\">Section 24(b) (Home Loan Interest)<\/strong><\/td>\n<td>\u2705 Up to INR 2 lakh (Self-occupied property)<\/td>\n<td>\u274c Not Allowed<\/td>\n<\/tr>\n<tr data-start=\"1797\" data-end=\"1951\">\n<td><strong data-start=\"1799\" data-end=\"1826\">NPS (Section 80CCD(1B))<\/strong><\/td>\n<td>\u2705 Up to INR 50,000<\/td>\n<td>\u274c Not Allowed<\/td>\n<\/tr>\n<tr data-start=\"1952\" data-end=\"2106\">\n<td><strong data-start=\"1954\" data-end=\"1995\">Rebate u\/s 87A (For Income \u2264 \u20b97 lakh)<\/strong><\/td>\n<td>\u2705 INR 12,500 rebate<\/td>\n<td>\u2705 INR 25,000 rebate (for income up to INR 7 lakh)<\/td>\n<\/tr>\n<tr data-start=\"2107\" data-end=\"2263\">\n<td><strong data-start=\"2109\" data-end=\"2154\">Rebate u\/s 87A (For Income \u2264 INR 7L &#8211; INR 7.5L)<\/strong><\/td>\n<td>\u274c Rebate phases out<\/td>\n<td>\u2705 Effective rebate up to INR 7.5 lakh (via slab tweak)<\/td>\n<\/tr>\n<tr data-start=\"2264\" data-end=\"2420\">\n<td><strong data-start=\"2266\" data-end=\"2308\">Family Pension Deduction (u\/s 57(iia))<\/strong><\/td>\n<td>\u2705 Up to INR 15,000 or 1\/3rd of pension (whichever lower)<\/td>\n<td>\u2705 Allowed<\/td>\n<\/tr>\n<tr data-start=\"2421\" data-end=\"2575\">\n<td><strong data-start=\"2423\" data-end=\"2453\">Professional Tax (if paid)<\/strong><\/td>\n<td>\u2705 Allowed<\/td>\n<td>\u274c Not Allowed<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<h3 data-start=\"2582\" data-end=\"2621\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-29116\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/photo_2025-04-06_23-48-44.jpg\" alt=\"Comparison of Deductions under Old Regime vs New Regime for FY 2024-25\" width=\"1080\" height=\"1080\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/photo_2025-04-06_23-48-44.jpg 1080w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/photo_2025-04-06_23-48-44-300x300.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/photo_2025-04-06_23-48-44-1024x1024.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/photo_2025-04-06_23-48-44-150x150.jpg 150w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/photo_2025-04-06_23-48-44-768x768.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/photo_2025-04-06_23-48-44-800x800.jpg 800w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/h3>\n<h3 class=\"\" data-start=\"2582\" data-end=\"2621\"><span class=\"ez-toc-section\" id=\"Tax_Slabs_Comparison\"><\/span><span style=\"color: #000080;\"><strong data-start=\"2589\" data-end=\"2621\">Tax Slabs Comparison\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"2623\" data-end=\"2669\">\u2705 <strong data-start=\"2630\" data-end=\"2650\">Old Regime Slabs<\/strong> (with deductions):<\/p>\n<ul data-start=\"2670\" data-end=\"2742\">\n<li class=\"\" data-start=\"2670\" data-end=\"2689\">\n<p class=\"\" data-start=\"2672\" data-end=\"2689\">Up to INR 2.5L \u2013 Nil<\/p>\n<\/li>\n<li class=\"\" data-start=\"2690\" data-end=\"2706\">\n<p class=\"\" data-start=\"2692\" data-end=\"2706\">INR 2.5L\u2013INR 5L \u2013 5%<\/p>\n<\/li>\n<li class=\"\" data-start=\"2707\" data-end=\"2723\">\n<p class=\"\" data-start=\"2709\" data-end=\"2723\">INR 5L\u2013INR 10L \u2013 20%<\/p>\n<\/li>\n<li class=\"\" data-start=\"2724\" data-end=\"2742\">\n<p class=\"\" data-start=\"2726\" data-end=\"2742\">Above INR 10L \u2013 30%<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"2744\" data-end=\"2826\"><span style=\"color: #000080;\">\u2705 <strong data-start=\"2751\" data-end=\"2771\">New Regime Slabs<\/strong> <em data-start=\"2772\" data-end=\"2825\">(Post Budget 2023, default from FY 2023-24 onwards)<\/em>:<\/span><\/p>\n<ul data-start=\"2827\" data-end=\"2939\">\n<li class=\"\" data-start=\"2827\" data-end=\"2846\">\n<p class=\"\" data-start=\"2829\" data-end=\"2846\">Up to INR 3L \u2013 Nil<\/p>\n<\/li>\n<li class=\"\" data-start=\"2847\" data-end=\"2863\">\n<p class=\"\" data-start=\"2849\" data-end=\"2863\">INR 3L\u2013INR 6L \u2013 5%<\/p>\n<\/li>\n<li class=\"\" data-start=\"2864\" data-end=\"2881\">\n<p class=\"\" data-start=\"2866\" data-end=\"2881\">INR 6L\u2013INR 9L \u2013 10%<\/p>\n<\/li>\n<li class=\"\" data-start=\"2882\" data-end=\"2900\">\n<p class=\"\" data-start=\"2884\" data-end=\"2900\">INR 9L\u2013INR 12L \u2013 15%<\/p>\n<\/li>\n<li class=\"\" data-start=\"2901\" data-end=\"2920\">\n<p class=\"\" data-start=\"2903\" data-end=\"2920\">INR 12L\u2013INR 15L \u2013 20%<\/p>\n<\/li>\n<li class=\"\" data-start=\"2921\" data-end=\"2939\">\n<p class=\"\" data-start=\"2923\" data-end=\"2939\">Above INR 15L \u2013 30%<\/p>\n<\/li>\n<\/ul>\n<h3 class=\"\" data-start=\"1746\" data-end=\"1762\"><span class=\"ez-toc-section\" id=\"_Key_Consideration_Tips\"><\/span><span style=\"color: #000080;\"><strong data-start=\"1753\" data-end=\"1761\">\u00a0<\/strong><strong data-start=\"2953\" data-end=\"2975\">Key Consideration\u00a0<\/strong><\/span><span style=\"color: #000080;\"><strong data-start=\"1753\" data-end=\"1761\">Tips\u00a0<\/strong><\/span><span style=\"color: #000080;\"><strong data-start=\"2953\" data-end=\"2975\">:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"1763\" data-end=\"2068\">\n<li class=\"\" data-start=\"1763\" data-end=\"1819\">\n<p class=\"\" data-start=\"1765\" data-end=\"1819\">Use a tax regime calculator or consult a professional.\u00a0 Save Form 12BB if you&#8217;re declaring under the old regime (to claim HRA, 80C, 80D, etc.). If your total deductions exceed INR 3 lakh, the Old Regime may be more beneficial.<\/p>\n<\/li>\n<li class=\"\" data-start=\"1910\" data-end=\"2068\">\n<p class=\"\" data-start=\"1912\" data-end=\"2068\">You can switch regimes while filing your ITR, even if you declared otherwise to employer (except for business income taxpayers\u2014only one switch allowed). If not claiming many deductions or you prefer simplicity, the New Regime offers lower rates and ease of filing.<\/p>\n<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Checklist_for_Salaried_Employee_in_New_Regime_FY_2025-26\"><\/span><span style=\"color: #000080;\"><strong>Checklist for Salaried Employee in New Regime (FY 2025-26)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-29307\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/photo_2025-05-18_16-08-48.jpg\" alt=\"Checklist for Salaried Employee in New Regime (FY 2025-26)\" width=\"1251\" height=\"1251\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/photo_2025-05-18_16-08-48.jpg 1251w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/photo_2025-05-18_16-08-48-300x300.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/photo_2025-05-18_16-08-48-1024x1024.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/photo_2025-05-18_16-08-48-150x150.jpg 150w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/photo_2025-05-18_16-08-48-768x768.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/photo_2025-05-18_16-08-48-800x800.jpg 800w\" sizes=\"(max-width: 1251px) 100vw, 1251px\" \/><\/p>\n<ul>\n<li>Opt for Corporate NPS (National Pension Scheme) : Claim tax benefit under section 80CCD(2) on employer&#8217;s contribution. Deduction up to 14% of basic salary is allowed (for central government employees) or up to 10% (for others).<\/li>\n<li>Disclose All Additional Incomes: Include Dividend Income, Rental Income, and Interest Income from Banks, etc., in your return.<\/li>\n<li>TDS on House Rent: Deduct 2% TDS if you are paying house rent above \u20b950,000\/month under section 194-IB.<\/li>\n<li>Post Office Interest Income: Exempt up to:\n<ul>\n<li>\u20b93,500 per year (single account)<\/li>\n<li>\u20b97,000 per year (joint account)<\/li>\n<\/ul>\n<\/li>\n<li>Interest in Home Loan: If you earn rental income, then deduct home loan interest under Income from House Property. (Note: Deduction under section 24(b) for self-occupied property is not allowed in the new regime.)<\/li>\n<li>LTCG on Shares: Long-Term Capital Gains (LTCG) on sale of listed shares\/stocks are exempt up to \u20b91.25 lakh\/year under section 112A.<\/li>\n<li>Advance Tax Payment: Pay your advance tax timely to avoid interest under section 234B &amp; 234C for delayed payments.<\/li>\n<\/ul>\n<h3 data-start=\"217\" data-end=\"272\"><span class=\"ez-toc-section\" id=\"Key_Improvements_in_FY_2025%E2%80%9326_vs_FY_2024%E2%80%9325\"><\/span><span style=\"color: #000080;\"><strong data-start=\"223\" data-end=\"272\">Key Improvements in FY 2025\u201326 vs FY 2024\u201325:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Difference of Exemptions &amp; Deductions Available for New Tax Regimes for Financial Year 2024-25 &amp; Financial Year 2025-26, Specifically for Salaried Persons.<\/p>\n<div class=\"_tableContainer_80l1q_1\">\n<div class=\"_tableWrapper_80l1q_14 group flex w-fit flex-col-reverse\" tabindex=\"-1\">\n<table class=\"w-fit min-w-(--thread-content-width)\" data-start=\"274\" data-end=\"1642\">\n<thead data-start=\"274\" data-end=\"356\">\n<tr data-start=\"274\" data-end=\"356\">\n<th data-start=\"274\" data-end=\"319\" data-col-size=\"sm\">Particulars<\/th>\n<th data-start=\"319\" data-end=\"332\" data-col-size=\"sm\">FY 2024\u201325<\/th>\n<th data-start=\"332\" data-end=\"345\" data-col-size=\"sm\">FY 2025\u201326<\/th>\n<th data-start=\"345\" data-end=\"356\" data-col-size=\"md\">Remarks<\/th>\n<\/tr>\n<\/thead>\n<tbody data-start=\"439\" data-end=\"1642\">\n<tr data-start=\"439\" data-end=\"590\">\n<td data-start=\"439\" data-end=\"483\" data-col-size=\"sm\">Rebate eligibility u\/s 87A<\/td>\n<td data-col-size=\"sm\" data-start=\"483\" data-end=\"496\">\u20b97,00,000<\/td>\n<td data-col-size=\"sm\" data-start=\"496\" data-end=\"509\">\u20b912,00,000<\/td>\n<td data-col-size=\"md\" data-start=\"509\" data-end=\"590\">Huge increase \u2014 effective tax-free salary income increased significantly.<\/td>\n<\/tr>\n<tr data-start=\"591\" data-end=\"731\">\n<td data-start=\"591\" data-end=\"635\" data-col-size=\"sm\">Effective Tax-Free Salary Income<\/td>\n<td data-col-size=\"sm\" data-start=\"635\" data-end=\"648\">\u20b97,75,000<\/td>\n<td data-col-size=\"sm\" data-start=\"648\" data-end=\"661\">\u20b912,75,000<\/td>\n<td data-col-size=\"md\" data-start=\"661\" data-end=\"731\">Due to higher rebate limit and deductions like standard &amp; pension.<\/td>\n<\/tr>\n<tr data-start=\"732\" data-end=\"857\">\n<td data-start=\"732\" data-end=\"777\" data-col-size=\"sm\">Rebate u\/s 87A<\/td>\n<td data-col-size=\"sm\" data-start=\"777\" data-end=\"790\">\u20b925,000<\/td>\n<td data-col-size=\"sm\" data-start=\"790\" data-end=\"803\">\u20b960,000<\/td>\n<td data-col-size=\"md\" data-start=\"803\" data-end=\"857\">Rebate increased proportionally with income limit.<\/td>\n<\/tr>\n<tr data-start=\"858\" data-end=\"944\">\n<td data-start=\"858\" data-end=\"902\" data-col-size=\"sm\">Family Pension Deduction<\/td>\n<td data-col-size=\"sm\" data-start=\"902\" data-end=\"914\">Not Applicable<\/td>\n<td data-col-size=\"sm\" data-start=\"914\" data-end=\"926\">Applicable<\/td>\n<td data-col-size=\"md\" data-start=\"926\" data-end=\"944\">Newly allowed.<\/td>\n<\/tr>\n<tr data-start=\"945\" data-end=\"1049\">\n<td data-start=\"945\" data-end=\"989\" data-col-size=\"sm\">Gifts up to \u20b950,000<\/td>\n<td data-col-size=\"sm\" data-start=\"989\" data-end=\"1001\">\u00a0Not Applicable<\/td>\n<td data-col-size=\"sm\" data-start=\"1001\" data-end=\"1013\">Applicable<\/td>\n<td data-col-size=\"md\" data-start=\"1013\" data-end=\"1049\">Newly exempted under the new regime.<\/td>\n<\/tr>\n<tr data-start=\"1050\" data-end=\"1152\">\n<td data-start=\"1050\" data-end=\"1094\" data-col-size=\"sm\">VRS Exemption (Sec 10(10C))<\/td>\n<td data-col-size=\"sm\" data-start=\"1094\" data-end=\"1106\">\u00a0Not Applicable<\/td>\n<td data-col-size=\"sm\" data-start=\"1106\" data-end=\"1118\">Applicable<\/td>\n<td data-col-size=\"md\" data-start=\"1118\" data-end=\"1152\">Now eligible under the new regime.<\/td>\n<\/tr>\n<tr data-start=\"1153\" data-end=\"1260\">\n<td data-start=\"1153\" data-end=\"1197\" data-col-size=\"sm\">Gratuity Exemption \u2013 Sec 10(10)<\/td>\n<td data-col-size=\"sm\" data-start=\"1197\" data-end=\"1209\">\u00a0Not Applicable<\/td>\n<td data-col-size=\"sm\" data-start=\"1209\" data-end=\"1221\">Applicable<\/td>\n<td data-col-size=\"md\" data-start=\"1221\" data-end=\"1260\">Significant for retiring employees.<\/td>\n<\/tr>\n<tr data-start=\"1261\" data-end=\"1364\">\n<td data-start=\"1261\" data-end=\"1305\" data-col-size=\"sm\">Leave Encashment \u2013 Sec 10(10AA)<\/td>\n<td data-col-size=\"sm\" data-start=\"1305\" data-end=\"1317\">\u00a0Not Applicable<\/td>\n<td data-col-size=\"sm\" data-start=\"1317\" data-end=\"1329\">Applicable<\/td>\n<td data-col-size=\"md\" data-start=\"1329\" data-end=\"1364\">Now available under a new regime.<\/td>\n<\/tr>\n<tr data-start=\"1365\" data-end=\"1449\">\n<td data-start=\"1365\" data-end=\"1409\" data-col-size=\"sm\">Daily Allowance<\/td>\n<td data-col-size=\"sm\" data-start=\"1409\" data-end=\"1421\">\u00a0Not Applicable<\/td>\n<td data-col-size=\"sm\" data-start=\"1421\" data-end=\"1433\">Applicable<\/td>\n<td data-col-size=\"md\" data-start=\"1433\" data-end=\"1449\">Newly added.<\/td>\n<\/tr>\n<tr data-start=\"1450\" data-end=\"1556\">\n<td data-start=\"1450\" data-end=\"1494\" data-col-size=\"sm\">Transport for specially-abled<\/td>\n<td data-col-size=\"sm\" data-start=\"1494\" data-end=\"1506\">\u00a0Not Applicable<\/td>\n<td data-col-size=\"sm\" data-start=\"1506\" data-end=\"1518\">Applicable<\/td>\n<td data-col-size=\"md\" data-start=\"1518\" data-end=\"1556\">Important social benefits are included.<\/td>\n<\/tr>\n<tr data-start=\"1557\" data-end=\"1642\">\n<td data-start=\"1557\" data-end=\"1601\" data-col-size=\"sm\">Conveyance Allowance<\/td>\n<td data-col-size=\"sm\" data-start=\"1601\" data-end=\"1613\">\u00a0Not Applicable<\/td>\n<td data-col-size=\"sm\" data-start=\"1613\" data-end=\"1625\">Applicable<\/td>\n<td data-col-size=\"md\" data-start=\"1625\" data-end=\"1642\">Now included.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<div class=\"sticky end-(--thread-content-margin) h-0 self-end select-none\">\n<div class=\"absolute end-0 flex items-end\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<h3 data-start=\"1649\" data-end=\"1691\"><span class=\"ez-toc-section\" id=\"Still_Not_Allowed_in_FY_2025%E2%80%9326\"><\/span><span style=\"color: #000080;\"><strong data-start=\"1655\" data-end=\"1691\">Still Not Allowed in FY 2025\u201326:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"1693\" data-end=\"2002\">\n<li data-start=\"1693\" data-end=\"1708\">\n<p data-start=\"1695\" data-end=\"1708\">HRA Exemption<\/p>\n<\/li>\n<li data-start=\"1709\" data-end=\"1714\">\n<p data-start=\"1711\" data-end=\"1714\">LTA<\/p>\n<\/li>\n<li data-start=\"1715\" data-end=\"1753\">\n<p data-start=\"1717\" data-end=\"1753\">80C Deductions (LIC, PPF, ELSS etc.)<\/p>\n<\/li>\n<li data-start=\"1754\" data-end=\"1783\">\n<p data-start=\"1756\" data-end=\"1783\">Medical Insurance (Sec 80D)<\/p>\n<\/li>\n<li data-start=\"1784\" data-end=\"1810\">\n<p data-start=\"1786\" data-end=\"1810\">Education Loan (Sec 80E)<\/p>\n<\/li>\n<li data-start=\"1811\" data-end=\"1837\">\n<p data-start=\"1813\" data-end=\"1837\">Donation to Trusts (80G)<\/p>\n<\/li>\n<li data-start=\"1838\" data-end=\"1873\">\n<p data-start=\"1840\" data-end=\"1873\">Savings Bank Interest (80TTA\/TTB)<\/p>\n<\/li>\n<li data-start=\"1874\" data-end=\"1917\">\n<p data-start=\"1876\" data-end=\"1917\">Home Loan Interest (Self-occupied\/Vacant)<\/p>\n<\/li>\n<li data-start=\"1918\" data-end=\"1952\">\n<p data-start=\"1920\" data-end=\"1952\">Deduction for Disabled (Sec 80U)<\/p>\n<\/li>\n<li data-start=\"1953\" data-end=\"1970\">\n<p data-start=\"1955\" data-end=\"1970\">EV Loan (80EEB)<\/p>\n<\/li>\n<li data-start=\"1971\" data-end=\"2002\">\n<p data-start=\"1973\" data-end=\"2002\">Other Chapter VI-A Deductions<\/p>\n<\/li>\n<\/ul>\n<h3 data-start=\"2009\" data-end=\"2044\"><span class=\"ez-toc-section\" id=\"Still_Allowed_both_FYs\"><\/span><span style=\"color: #000080;\"><strong data-start=\"2015\" data-end=\"2044\">Still Allowed (both FYs):<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"2046\" data-end=\"2183\">\n<li data-start=\"2046\" data-end=\"2066\">\n<p data-start=\"2048\" data-end=\"2066\">Standard Deduction<\/p>\n<\/li>\n<li data-start=\"2067\" data-end=\"2102\">\n<p data-start=\"2069\" data-end=\"2102\">Employer\u2019s NPS Contribution (14%)<\/p>\n<\/li>\n<li data-start=\"2103\" data-end=\"2138\">\n<p data-start=\"2105\" data-end=\"2138\">Perquisites for official purposes<\/p>\n<\/li>\n<li data-start=\"2139\" data-end=\"2183\">\n<p data-start=\"2141\" data-end=\"2183\">Home Loan Interest (let-out property only)<\/p>\n<\/li>\n<\/ul>\n<h3 data-start=\"2190\" data-end=\"2212\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><span style=\"color: #000080;\"><strong data-start=\"2197\" data-end=\"2212\">Conclusion:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"2214\" data-end=\"2299\">The FY 2025\u201326 New Tax Regime brings significant improvements, especially by Broadening the rebate slab and Adding crucial exemptions like gratuity, leave encashment, pension, daily\/travel allowances, and VRS benefits.\u00a0However, deductions under Chapter VI-A (like 80C, 80D, 80E, 80G) remain inapplicable, which could still make the Old Tax Regime preferable for taxpayers with high investments in those areas.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Quick breakdown for\u00a0Choosing Old or New Tax Regime for\u00a0FY 2025-26 (AY 2026-27) Choosing Old or New Tax Regime for FY 25-26: Time to declare to employer\u00a0 it\u2019s a crucial time for salaried individuals to optimize TDS deductions for FY 2025-26. Choosing Old vs New Tax Regime for FY 2025-26, Employees must declare their tax regime &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[150],"tags":[10305],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29113"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=29113"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29113\/revisions"}],"predecessor-version":[{"id":29543,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29113\/revisions\/29543"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=29113"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=29113"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=29113"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}