Introduction
Are you scratching your head wondering, “Which tax regime should I select for F.Y. 2025-26?” You’re not alone. Every salaried and self-employed person in India faces this decision at the beginning of the financial year. With the Budget 2025 adding new updates and tweaks, it’s more important than ever to choose wisely. And guess what? You don’t have to do it alone. With the Automatic Income Tax Preparation Software in Excel (All in One), even this complex decision becomes as easy as pie.
In this article, we break down the old and new tax regimes in simple language. Plus, we’ll help you use the Excel software to file your taxes stress-free, for both Government and Non-Government employees, along with Form 10 compliance. Let’s dive in.
Table of Contents
| Sr# | Headings |
| 1 | Introduction |
| 2 | Understanding the Two Tax Regimes |
| 3 | Budget 2025: Key Updates |
| 4 | Who Should Choose the Old Regime? |
| 5 | Who Benefits More From the New Regime? |
| 6 | Comparing Slab Rates: Old vs. New |
| 7 | Standard Deduction in the New Regime |
| 8 | Standard Deduction in New Regime |
| 9 | What is Form 10E and Why Is It Important? |
| 10 | How Excel-Based Tax Software Helps |
| 11 | Automatic Income Tax Software Features |
| 12 | Steps to Use the Excel Software |
| 13 | Tax Planning Tips for 2025-26 |
| 14 | Final Thoughts on Choosing the Right Regime |
| 15 | Frequently Asked Questions (FAQs) |
Understanding the Two Tax Regimes
India offers two tax systems: the Old Regime, packed with deductions and exemptions, and the New Regime, which offers lower slab rates but no major deductions. Think of it like choosing between a buffet (old regime) and an à la carte menu (new regime). One gives you variety with conditions; the other gives simplicity with fixed prices.
Budget 2025: Key Updates
The Union Budget 2025 made some critical updates to tax rates, rebates, and deductions. For example:
- New Regime is now the default.
- Standard deduction extended to the new regime.
- Revised rebate limits under Section 87A.
- No changes in old regime slab rates.
These updates mean that you’ll need to evaluate your income, deductions, and tax planning habits before selecting a regime.
Who Should Choose the Old Regime?
Choose the Old Tax Regime if:
- You claim multiple deductions like 80C, 80D, HRA, LTA, home loan interest, etc.
- You invest regularly in PPF, EPF, ELSS, or insurance.
- Your total deductions exceed ₹2.5–₹3 lakh annually.
The Old Regime rewards planners. If you’re someone who believes in saving and tax planning, this one might suit you better.
Who Benefits More From the New Regime?
Opt for the New Tax Regime if:
- You don’t claim many deductions.
- You prefer simple, no-fuss taxation.
- You are a young professional or freelancer without housing loan/HRA deductions.
This regime gives you lower slab rates but skips all the deductions. It’s great for those who want more cash in hand now rather than locking money in savings instruments.
Comparing Slab Rates: Old vs. New
Here’s a quick look:
| Income Range | Old Regime | New Regime |
| Up to ₹2.5 lakh | NIL | NIL |
| ₹2.5 – ₹5 lakh | 5% | 5% |
| ₹5 – ₹7.5 lakh | 20% | 10% |
| ₹7.5 – ₹10 lakh | 20% | 15% |
| ₹10 – ₹12.5 lakh | 30% | 20% |
| ₹12.5 – ₹15 lakh | 30% | 25% |
| ₹15 lakh+ | 30% | 30% |
As seen, the new regime has lower tax rates, but no deductions.
Dedications and Exemptions in the Old Regime
The Old Regime allows:
- Section 80C: Up to ₹1.5 lakh
- 80D: Health insurance
- HRA
- Home loan interest
- Education loan (Section 80E)
- LTA
- And more…
These can significantly reduce taxable income if used well.
Standard Deduction in the New Regime
Thanks to Budget 2025, the standard deduction of ₹50,000 is now available in both regimes. That’s a big plus for salaried individuals under the new regime who earlier missed this benefit.
What is Form 10E and Why Is It Important?
Form 10E must be filed if you’re claiming tax relief under Section 89(1) for salary arrears. Without it, your claim can be rejected even if valid. It’s mandatory for both regimes when you’re managing arrears or advance salary.
How Excel-Based Tax Software Helps
Imagine having a personal accountant sitting in your computer. That’s what the Automatic Income Tax Preparation Software in Excel does. It’s:
- User-friendly
- Accurate with the latest slab rates
- Suitable for the Govt. & Non-Govt. employees
- Integrated with Form 10E utility
- Compatible with Budget 2025 updates
This tool helps you analyse, compare, and file your taxes in minutes.
Automatic Income Tax Software Features
- Auto Calculation of Income, Deductions & Tax
- Option to switch between regimes
- Form 10E integrated
- Compatible with F.Y. 2025-26
- One-click computation for multiple salary heads
- Designed for both Govt. & Private Sector
Steps to Use the Excel Software
- Download the Excel utility from the link below
- Enter your basic details like name, PAN, FY, etc.
- Input your income from all sources.
- Declare deductions under 80C, 80D, etc.
- Compare tax liability under both regimes.
- Choose the one that saves you the most.
- Generate and print Form 10E if applicable.
- Submit details to your employer or use it for filing returns.
Tax Planning Tips for 2025-26
- Don’t just chase lower tax — focus on total financial health.
- Plan your investments at the start of the financial year.
- Use the Excel software to simulate outcomes for both regimes.
- Keep documents and proofs organised and backed up.
- Review your tax regime choice yearly — it’s not permanent!
Final Thoughts on Choosing the Right Regime
Choosing the Old or New Regime for F.Y. 2025-26 doesn’t have to be overwhelming. Think of it like selecting between two meal plans — one rich with variety and savings (old regime), the other simple, efficient, and predictable (new regime). Your decision should reflect your income pattern, lifestyle, and financial goals.
By using the Automatic Income Tax Preparation Software in Excel, you not only simplify the process but also make an informed decision backed by data. Whether you are a Government or Non-Government employee, smart decisions now can lead to big savings later.
Frequently Asked Questions (FAQs)
1. What is the major difference between the old and new tax regimes?
The old regime offers various deductions and exemptions, while the new regime provides lower tax rates but no deductions (except the standard deduction).
2. Can I switch between tax regimes every year?
Yes, salaried individuals can choose a different regime every financial year. Business owners have stricter rules.
3. Is Form 10E mandatory for claiming relief under Section 89(1)?
Yes, without Form 10E, your relief claim will be denied even if you are eligible.
4. Is the Excel tax preparation software suitable for both salaried and pensioners?
Yes, it’s designed for both Government and Private sector employees, as well as pensioners.
5. Which tax regime is better for someone with no investments or deductions?
Usually, the new regime is more beneficial for individuals with no deductions, due to its lower slab rates.
Download automatic income tax preparation Excel-based software all-in-one with Form 10E for the Government and Non-Government Employees for the F.Y. 2025- 26 as per Budget 2025
What Makes This Excel Utility All-in-One?
This Excel-based software does more than just compute your taxes. It offers a complete package that automates every crucial step of income tax preparation:
✅ Calculates Income Tax as per the Latest Budget 2025 Slabs
The software automatically determines your tax liability according to the latest income tax slabs introduced in Budget 2025. You don’t have to input the new rates manually—it’s already updated and ready to use.
✅ Includes an Inbuilt Salary Structure for Govt and Non-Govt Employees
Whether you’re a central/state government employee or working in the private sector, the software offers pre-defined salary structures tailored to your employment category. It captures allowances, deductions, and exemptions accurately for precise tax calculation.
✅ Auto Calculates H.R.A. Exemption Under Section 10(13A)
Calculating H.R.A. exemption can be complex, but this utility simplifies it by automatically computing the eligible HRA exemption based on your inputs, like basic salary, rent paid, and city of residence.
✅ Auto-fills the Salary Sheet
Manually entering every salary component can be both time-consuming and prone to errors. This tool automatically fills out the salary sheet, making the process smooth and error-free while maintaining accuracy across all fields.
✅ Auto Calculates Arrears Relief Under Section 89(1) with Form 10E
If you received salary arrears, this software computes the Relief U/s 89(1) automatically. It also auto-generates Form 10E, which is mandatory to claim the relief, saving you the burden of manual calculation.
✅ Automatically Generates Form 16 – Part A & B and Part B Only
Once your income and tax details are entered, the software instantly prepares Form 16 (Part A & B) and Part B also
