Old vs New Income Tax Regime Which Tax Regime is Better for the A.Y.2024-25? In the Finance Bill, 2023 New Tax Regime has been introduced with some benefits compared to the previous New Tax Regime. The earlier New Tax regime was not so attractive but the latest amendment has made this new regime more attractive to change from the old regime for most people with a gross salary of 15.5 Lakh.
Particulars Old Regime New Regime
Net profit for discount is Rs. 5 Lakh. Rs.7 Lakhs
Reduction of standard Rs. 50,000 Rs. 50,000
Tax-free salary without investment Rs. 5 Lakh Rs. 7.5 Lakhs
87A Exemption (maximum amount) Rs. 12,500 Rs. 25,000
Housing Rent Allowance (HRA)U//s 10(13A) Yes No
Traveling Allowance (LTA) u/s 10(5) Yes No
Food Subsidy 10 (14) Yes No
Exemption from voluntary retirement 10 (10C) Yes Yes
Gratuity Exemption 10 (10) Yes Yes
Denial of holiday pays 10 (10AA) Yes No
Transportation assistance for the disabled Yes Yes
Exemptions under Section VI-A
Emissions 80C Yes No
Self Entry NPS u/s 80CCD (1B) Yes No
Self Entry NPS u/s 80CCD (2) Yes Yes
Health Insurance Premium – 80D Yes No
Interest on Education Loan – 80E Yes No
Interest on Electric Car Loan – 80EEB (Max 1,50,000) Yes No
Donation to Political Party / Foundation etc., – 80GGC / 80G Yes No
Savings Bank interest u/s 80TTA/80TTB Yes No
Disability – 80U Yes No
Related Disability – 80DD and 80DDB Yes No
* In the case of employees, you can choose any mode before filing your income tax return, provided you file it within the deadline.
* Old Mode is useful if a person gets more than 3.75 lakh deductions/exemptions.
- A person with income above 15 lakhs is benefited from the new scheme only if the deductions are less than 3.75 lakhs.
Download Automated Income Tax Preparation Excel-Based Software All in One for the Government & Non-Government (Private) Employees for the F.Y.2023-24 and A.Y.2024-25
Feature of this Excel Utility:-
1) This Excel utility prepares and calculates your income tax as per the New Section 115 BAC (New and Old Tax Regime)
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4) Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E from the F.Y.2000-01 to F.Y.2023-24 (Update Version)
5) Automated Income Tax Revised Form 16 Part A&B for the F.Y.2023-24
6) Automated Income Tax Revised Form 16 Part B for the F.Y.2023-24