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.
Therefore,
Particulars Old Regime New Regime
Net profit for discount is Rs. 5 Lakh. Rs.7 Lakhs
In other words, the Reduction of standard Rs. 50,000 Rs. 50,000
However, a Tax-free salary without the investment of Rs. 5 Lakh Rs. 7.5 Lakhs
87A Exemption (maximum amount) Rs. 12,500 Rs. 25,000
For instance, Discounts
Housing Rent Allowance (HRA) U//s10(13A) Yes No
Above all, Traveling Allowance (LTA) u/s 10(5) Yes No
In addition, Food Subsidy 10 (14) Yes No
After that, Exemption from voluntary retirement 10 (10C) Yes Yes
Similarly, Gratuity Exemption 10 (10) Yes Yes
Denial of holiday pays 10 (10AA) Yes No
Transportation assistance for the disabled Yes Yes
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 conclusion
* 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 All the Salaried Persons for the Financial Year 2023-24 and Assessment Year 2024-25 U/s 115BAC
Feature of this Excel Utility:-
1) In other words, This Excel Utility Prepare Your Income Tax as per your option U/s 115BAC perfectly.
2) However, This Excel Utility has all amended Income Tax Sections as per Budget 2023
3) Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E from the F.Y.2000-01 to F.Y.2023-24 (Updated Version)
4) For instance, Automated Calculation Income Tax House Rent Exemption U/s 10(13A)
5)In addition, Individual Salary Structure as per the Salaried Person’s Salary Pattern
6) Individual Salary Sheet
7) Individual Tax Computed Sheet
8) After that, Automated Income Tax Revised Form 16 Part A&B for the F.Y.2023-4
9) Similarly, Automated Income Tax Revised Form 16 Part B for the F.Y.2023-24
10) Automatic Convert the amount into the in-words without any Excel Formula
