{"id":5428,"date":"2018-12-28T12:21:53","date_gmt":"2018-12-28T06:51:53","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=5428"},"modified":"2024-05-22T01:05:04","modified_gmt":"2024-05-21T19:35:04","slug":"income-tax-updates-on-28th-december-2018","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/income-tax-updates-on-28th-december-2018\/","title":{"rendered":"INCOME TAX UPDATES : Old vs New Tax Regime"},"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-69e1acb5e6894\" 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-69e1acb5e6894\"  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\/income-tax-updates-on-28th-december-2018\/#INCOME_TAX_UPDATES_Old_vs_New_Tax_Regime\" title=\"INCOME TAX UPDATES : Old vs New Tax Regime\">INCOME TAX UPDATES : Old vs New Tax Regime<\/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\/income-tax-updates-on-28th-december-2018\/#Choosing_between_the_old_and_new_tax_regimes\" title=\"Choosing between the old and new tax regimes \">Choosing between the old and new tax regimes <\/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\/income-tax-updates-on-28th-december-2018\/#Understanding_the_Tax_Regimes\" title=\"Understanding the Tax Regimes\">Understanding the Tax Regimes<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/income-tax-updates-on-28th-december-2018\/#Old_Tax_Regime\" title=\"Old Tax Regime:\">Old Tax Regime:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/income-tax-updates-on-28th-december-2018\/#New_Tax_Regime\" title=\"New Tax Regime:\">New Tax Regime:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/income-tax-updates-on-28th-december-2018\/#What_are_basic_conditions_to_optin_for_New_Tax_Regime_in_Assessment_Year_2024-25\" title=\"What are basic conditions to optin for New Tax Regime in Assessment Year 2024-25\">What are basic conditions to optin for New Tax Regime in Assessment Year 2024-25<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/income-tax-updates-on-28th-december-2018\/#Implications_of_Choosing_the_Wrong_Tax_Regime\" title=\"Implications of Choosing the Wrong Tax Regime\">Implications of Choosing the Wrong Tax Regime<\/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\/income-tax-updates-on-28th-december-2018\/#Which_regime_is_beneficial_for_AY_2024-25\" title=\"Which regime is beneficial for AY 2024-25?\">Which regime is beneficial for AY 2024-25?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/income-tax-updates-on-28th-december-2018\/#Comparison_of_exemptiondeductions_available_under_the_old_tax_regime_and_new_tax_regime_of_Section_115BAC_for_AY_2024-25\" title=\"Comparison of exemption\/deductions available under the old tax regime and new tax regime of Section 115BAC for AY 2024-25\">Comparison of exemption\/deductions available under the old tax regime and new tax regime of Section 115BAC for AY 2024-25<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/income-tax-updates-on-28th-december-2018\/#Sum-Up\" title=\"Sum-Up\u00a0\">Sum-Up\u00a0<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"INCOME_TAX_UPDATES_Old_vs_New_Tax_Regime\"><\/span><span style=\"color: #000080;\">INCOME TAX UPDATES : Old vs New Tax Regime<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-24767\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/12\/Old-vs-New-Tax-Regime.-.jpg\" alt=\"Old vs New Tax Regime. \" width=\"986\" height=\"1280\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/12\/Old-vs-New-Tax-Regime.-.jpg 986w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/12\/Old-vs-New-Tax-Regime.--231x300.jpg 231w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/12\/Old-vs-New-Tax-Regime.--789x1024.jpg 789w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/12\/Old-vs-New-Tax-Regime.--768x997.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/12\/Old-vs-New-Tax-Regime.--800x1039.jpg 800w\" sizes=\"(max-width: 986px) 100vw, 986px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Choosing_between_the_old_and_new_tax_regimes\"><\/span><span style=\"color: #000080;\"><strong>Choosing between the old and new tax regimes <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"flex flex-grow flex-col max-w-full\">\n<div class=\"min-h-[20px] text-message flex flex-col items-start whitespace-pre-wrap break-words [.text-message+&amp;]:mt-5 juice:w-full juice:items-end overflow-x-auto gap-2\" dir=\"auto\" data-message-author-role=\"assistant\" data-message-id=\"fda99d85-6bfa-409f-82d5-58b0e6974af6\">\n<div class=\"flex w-full flex-col gap-1 juice:empty:hidden juice:first:pt-[3px]\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light\">\n<p>Choosing between the old and new tax regimes at the beginning of the financial year is crucial for salaried individuals, as it directly impacts the Tax Deducted at Source (TDS) on their salaries. Here&#8217;s a detailed overview of the implications and considerations for FY 2024-25:<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Understanding_the_Tax_Regimes\"><\/span><span style=\"color: #000080;\">Understanding the Tax Regimes<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Old_Tax_Regime\"><\/span><span style=\"color: #000080;\"><strong>Old Tax Regime:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><strong>Features:<\/strong> Includes various deductions and exemptions such as House Rent Allowance (HRA), Leave Travel Allowance (LTA), standard deduction, and deductions under Section 80C (investments in PPF, life insurance, etc.), 80D (health insurance premiums), etc.<\/li>\n<li><strong>Suitable For:<\/strong> Individuals who can maximize these exemptions and deductions, reducing their taxable income significantly.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"New_Tax_Regime\"><\/span><span style=\"color: #000080;\"><strong>New Tax Regime:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><strong>Features:<\/strong> Lower tax rates with no exemptions or deductions. Tax slabs are designed to provide straightforward, lower rates without the need for complex tax planning.<\/li>\n<li><strong>Suitable For:<\/strong> Individuals who do not have significant investments in tax-saving instruments or prefer a simpler tax calculation process.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"What_are_basic_conditions_to_optin_for_New_Tax_Regime_in_Assessment_Year_2024-25\"><\/span><span style=\"color: #000080;\"><strong>What are basic conditions to optin for New Tax Regime in Assessment Year 2024-25<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-26132\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/12\/Conditions-to-optin-for-New-Tax-Regime-in-AY-2024-25.jpg\" alt=\"What are the Conditions to optin for New Tax Regime in Assessment Year 2024-2025\" width=\"1123\" height=\"1280\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/12\/Conditions-to-optin-for-New-Tax-Regime-in-AY-2024-25.jpg 1123w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/12\/Conditions-to-optin-for-New-Tax-Regime-in-AY-2024-25-263x300.jpg 263w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/12\/Conditions-to-optin-for-New-Tax-Regime-in-AY-2024-25-898x1024.jpg 898w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/12\/Conditions-to-optin-for-New-Tax-Regime-in-AY-2024-25-768x875.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/12\/Conditions-to-optin-for-New-Tax-Regime-in-AY-2024-25-800x912.jpg 800w\" sizes=\"(max-width: 1123px) 100vw, 1123px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Implications_of_Choosing_the_Wrong_Tax_Regime\"><\/span><span style=\"color: #000080;\">Implications of Choosing the Wrong Tax Regime<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>If you opt for the new tax regime but have significant eligible deductions and exemptions under the old regime, you might end up paying higher taxes since these benefits cannot be claimed under the new regime.<\/li>\n<li>Conversely, choosing the old regime without sufficient deductions can also lead to higher TDS compared to the new regime.Incorrect TDS deductions reduce your monthly take-home salary. This affects your cash flow and financial planning throughout the year.\n<ul>\n<li>If the wrong regime is chosen, you may need to make adjustments when filing your income tax return, leading to a potential refund or additional tax liability. This can complicate the tax filing process and delay potential refunds.<\/li>\n<li>Assess your annual income, possible deductions, and exemptions to calculate your tax liability under both regimes. Various online calculators and tools can help with this.<\/li>\n<li>Analyze your previous year\u2019s tax returns to understand your deductions and exemptions. This historical data can help predict your potential tax savings under the old regime.<\/li>\n<li>Inform your employer of your chosen tax regime promptly in April. This ensures accurate TDS calculation from the beginning of the financial year.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Which_regime_is_beneficial_for_AY_2024-25\"><\/span><span style=\"color: #000080;\"><strong>Which regime is beneficial for AY 2024-25?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #000080;\"><strong>NEW VS OLD TAX REGIME after Budget2023 announcement\u00a0for diff salaried incomes\u00a0<\/strong><\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-24990\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/12\/Which-regime-is-beneficial-for-AY-2024-25.jpg\" alt=\"Which regime is beneficial for AY 2024-25\" width=\"886\" height=\"594\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/12\/Which-regime-is-beneficial-for-AY-2024-25.jpg 886w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/12\/Which-regime-is-beneficial-for-AY-2024-25-300x201.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/12\/Which-regime-is-beneficial-for-AY-2024-25-768x515.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/12\/Which-regime-is-beneficial-for-AY-2024-25-800x536.jpg 800w\" sizes=\"(max-width: 886px) 100vw, 886px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Comparison_of_exemptiondeductions_available_under_the_old_tax_regime_and_new_tax_regime_of_Section_115BAC_for_AY_2024-25\"><\/span><span style=\"color: #000080;\">Comparison of exemption\/deductions available under the old tax regime and new tax regime of Section 115BAC for AY 2024-25<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-24983\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/12\/photo_2023-07-10_00-14-13.jpg\" alt=\"old vs new tax regime deductions\" width=\"855\" height=\"687\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/12\/photo_2023-07-10_00-14-13.jpg 855w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/12\/photo_2023-07-10_00-14-13-300x241.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/12\/photo_2023-07-10_00-14-13-768x617.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/12\/photo_2023-07-10_00-14-13-800x643.jpg 800w\" sizes=\"(max-width: 855px) 100vw, 855px\" \/><\/h2>\n<p>Assumption- 80C investment 1.5 lac ( even other than Home loan) &amp; 80D Mediclaim 25000 is claimed<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Sum-Up\"><\/span><strong>Sum-Up\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>New regime is default setting- You have to file form for opt old one<\/li>\n<li>For ppl having housing loan &#8211; Always Old regime is beneficial<\/li>\n<li>For ppl having NO housing loan &#8211; New regime is beneficial &#8211; It doesn&#8217;t make diff whether You are paying 80C+80D full<\/li>\n<li>Buis. ppl will have slight higher tax than above working as they wont get standard deduction of 50000<\/li>\n<li>Choosing the right tax regime is essential to manage your tax liability efficiently. Evaluate both regimes based on your financial situation and potential deductions.<\/li>\n<li>Making an informed choice in April will ensure proper TDS, better monthly cash flow, and smoother tax filing at the end of the financial year.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>INCOME TAX UPDATES : Old vs New Tax Regime Choosing between the old and new tax regimes Choosing between the old and new tax regimes at the beginning of the financial year is crucial for salaried individuals, as it directly impacts the Tax Deducted at Source (TDS) on their salaries. Here&#8217;s a detailed overview of &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[150,1,15],"tags":[6013,5998],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/5428"}],"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=5428"}],"version-history":[{"count":4,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/5428\/revisions"}],"predecessor-version":[{"id":26655,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/5428\/revisions\/26655"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=5428"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=5428"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=5428"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}