New tax regime
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Here are the sources of income that remain completely tax-free under the new tax regime in India.
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Under the new tax regime, deduction on home loan interest can be opted for let-out properties. Such deductions can be fully claimed against the property's rental income.
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Salaried employees have the option to choose between the old and the new income tax regimes while filing their returns though the new income tax regime continues to remain the default option.
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How to pay 0 tax on 14.65 lakh salary Save taxes under New Tax Regime Calculations, deductions explained
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While ELSS funds continue to deliver market-linked returns like other equity mutual funds, the tax incentive that once made them popular has reduced significantly for taxpayers who opt for the new regime.
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The old tax regime refers to the system of income tax calculation and slabs that existed before the introduction of the new tax regime.
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The Finance Act 2025 introduced comprehensive changes to the Personal Income Tax structure under the New Tax Regime (NTR), leaving more money in taxpayers’ hands.
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Income tax is zero for those earning up to Rs 12 lakh per annum underNew Tax Regime.
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Under the old tax regime, House Rent Allowance (HRA) is exempted under section 10(13A) for salaried individuals. However, this exemption is not available in the new tax regime.
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One of the stark differences betweenNew Tax Regime and OldTax Regimeis that the tax slabs and rates are different. Additionally, various deductions and exemptions are allowed in Old tax regime, which is not applicable inNew Tax Regime. The new regime offers lower rates of taxes but permits limited deductions and exemptions. Despite these limitations, it is a good idea to invest in a few savings instruments. Know the reasons and benefits.
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The New Income Tax Bill 2025 will come into force from April 1, 2026. It will replace the Income Tax Act, 1961, in operation since April 1, 1962.
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Salaried employees or pensioners without business income can change their tax regime at any time prior to filing their ITR every year by simply selecting the relevant option on the ITR-1 or ITR-2 form.
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Before choosing a regime, consider your income, pay structure, and tax-saving investments. Salaried individuals with minimal deductions may benefit from the new regime.
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If you have chosen old tax regime, you need to be mindful of the deadline and the fallout in the event of missing those.
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INCOME TAX FILING 2025: If you choose the new tax regime, you would not be able to claim the following 7 major deductions, check them out.
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Old Tax Regime Vs New Tax Regime:The new tax regime under Section 115BAC of the Income Tax Act offers lower tax rates in exchange for giving up most exemptions and deductions.
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CBDT has announced several changes in the ITR forms this including that in ITR-1 (SAHAJ) and ITR-4. Here are 6 Changes regarding ITR-1 (SAHAJ) that salaried individuals should know.
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Are you planning to shift from old to new tax regime during actual ITR filing this fiscal? keep the following things in mind.
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ITR Filing For FY 2024-25:The Income Tax Act allows individuals to switch between the old and new tax regimes while filing their ITR.
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ITR Forms 2025-26 For Senior Citizens:Adding further, many senior citizens mistakenly assume that filing returns isn't necessary if tax is already deducted at source (TDS) on their income. However, this is incorrect.
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You can switch between the old and new tax regimes every year if your income comes from salary, interest, or rent (non-business income).
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