Why the New Tax Regime is More Beneficial to Salaried Persons as per the Budget 2025 | With Automatic Income Tax Preparation Software All in One in Excel for the Non-Government Employees for the F.Y. 2025-26

Introduction

When the Union Budget 2025 rolled out, one of the biggest talking points for salaried employees was the New Tax Regime U/s 115 BAC. With lower tax rates, simplified slabs, and reduced compliance headaches, this regime aims to make life easier for working professionals. For non-government employees, especially, these changes mean more money in hand and less time spent calculating taxes.

But here’s the twist—understanding these benefits and calculating your exact liability can still be tricky. That’s where Automatic Income Tax Preparation Software All-in-One in Excel comes to the rescue. It’s like having your tax accountant inside your laptop—minus the coffee breaks!

Let’s explore why the New Tax Regime may be your best bet this year, along with how to make tax filing effortless using the right tools.

Table of Contents

1. Understanding the New Tax Regime U/s 115 BAC

The New Tax Regime U/s 115 BAC was introduced to simplify the income tax system in India. It offers lower tax rates compared to the old regime but removes most deductions and exemptions. This means instead of collecting bills, proofs, and receipts, you can simply pay tax based on your income slab.

Think of it like switching from an à la carte menu to a buffet—you don’t get individual discounts on each item, but the overall deal may still save you money.

2. Key Changes in Budget 2025 for Salaried Persons

Budget 2025 has made the New Tax Regime more attractive by:

• Increasing the standard deduction from ₹50,000 to ₹75,000.
• Expanding the zero-tax limit to ₹7.5 lakh (after rebates).
• Offering simplified tax slabs with reduced rates.
• Making the New Tax Regime the default option unless you opt out.

These changes are designed to ensure salaried employees keep more of their earnings.

3. Old Tax Regime vs. New Tax Regime – Which Wins?

If you are someone who invests heavily in instruments like PPF, ELSS, and NPS, the old regime might still benefit you. But if you prefer simplicity and don’t claim many deductions, the new regime is likely better.

4. Tax Slabs under the New Tax Regime

For F.Y. 2025-26, the slabs are:

• Up to ₹3 lakh – Nil
• ₹3,00,001 to ₹7,00,000 – 5%
• ₹7,00,001 to ₹10,00,000 – 10%
• ₹10,00,001 to ₹12,00,000 – 15%
• ₹12,00,001 to ₹15,00,000 – 20%
• Above ₹15,00,000 – 30%

These rates, combined with the rebate under Section 87A, mean you pay zero tax if your income is up to ₹7.5 lakh.

5. Benefits of the New Tax Regime for Salaried Employees

• Lower tax rates mean more take-home pay.
• Reduced documentation makes filing faster.
• No need to track multiple deductions.
• Ideal for those with fewer investments.

For example, if your annual income is ₹9 lakh and you have minimal tax-saving investments, you could save several thousand rupees compared to the old regime.

6. Who Should Choose the New Tax Regime?

The new regime is particularly beneficial if:

• You don’t invest heavily in tax-saving instruments.
• You want to avoid collecting and submitting multiple proofs.
• You value simplicity over maximising deductions.

7. How the New Tax Regime Simplifies Compliance

Under the old regime, you needed to submit proofs for HRA, insurance, home loans, etc. In the new regime, you simply declare your income and pay based on slabs. This saves time and reduces errors.

8. Challenges of the New Tax Regime

• Loss of popular deductions like 80C, 80D, and HRA.
• Not suitable for heavy investors in tax-saving schemes.
• Requires careful calculation before switching.

9. Introduction to Automatic Income Tax Preparation Software

This All-in-One Excel-based software is designed for non-government employees to easily calculate their income tax under both regimes. It’s user-friendly, offline, and does not require advanced technical skills.

10. Features of the All-in-One Excel Tax Software

• Calculates tax under both old and new regimes.
• Auto-fills Form 16.
• Supports multiple allowances and incomes.
• Works for multiple financial years.
• Includes Form 10E for arrears relief.

11. How to Use the Excel Tool for Tax Calculation

1. Enter your personal details (Name, PAN, etc.).
2. Fill in income details from salary slips.
3. Choose your tax regime.
4. View auto-generated tax liability.
5. Save or print your calculation for records.

12. Step-by-Step Guide to Filing Taxes Under the New Regime

• Step 1: Download and open the Excel tool from the link below
• Step 2: Enter income details.
• Step 3: Select “New Tax Regime”.
• Step 4: Review tax liability and confirm.
• Step 5: File ITR online using these figures.

13. Tips to Maximise Benefits Under the New Tax Regime

• Use the standard deduction effectively.
• Explore employer benefits that remain tax-free.
• Avoid unnecessary investments just for tax savings.

14. Common Mistakes to Avoid

• Switching regimes without comparing both.
• Ignoring exemptions that still apply (like employer contribution to NPS).
• Forgetting to select the correct regime in your ITR.

15. Final Verdict – Is the New Tax Regime Worth It?

For many salaried employees, especially those in the non-government sector without heavy investments, the New Tax Regime U/s 115 BAC is a clear winner. Combine it with the right tools, like the Automatic Income Tax Preparation Software, and you’ll have a hassle-free, accurate tax experience.

16. Why Non-Government Employees Stand to Gain More

Non-government employees often have fewer tax-free allowances compared to their government counterparts. While government staff enjoy benefits like higher HRA exemptions or additional allowances, private-sector employees depend more on cash salaries.

Under the New Tax Regime U/s 115 BAC, where most deductions are removed, this gap narrows significantly. Both groups face similar tax rules, but for those who already had fewer exemptions, the new structure often means more savings and less paperwork.

Conclusion

The New Tax Regime is more than just a tax option—it’s a shift towards simplicity. By reducing rates and paperwork it allows you to focus on what matters most: your work and personal life. And with Excel-based tax tools, filing your return can be as easy as filling out a grocery list.

FAQs

1. What is the New Tax Regime U/s 115 BAC?
   It’s a simplified tax system with lower rates and minimal deductions, introduced to reduce compliance burdens.
2. Can I switch between old and new regimes every year?
   Yes, salaried individuals can change their choice each financial year.
3. Is the standard deduction available in the New Tax Regime?
   Yes, as per Budget 2025, the standard deduction is ₹75,000.
4. Does the Excel tax software work offline?
   Yes, the software works without an internet connection.
5. Which regime is better for someone with no tax-saving investments?
   In most cases, the New Tax Regime will result in lower taxes for such individuals.

Download Automatic Income Tax Calculator All in One for Non-Government Employees in Excel for the F.Y. 2025-26

Features of this Excel Utility:

• This Excel Calculator prepares your Tax Computation Sheet instantly as per Budget 2025.

• It includes a built-in Salary Structure for Non-Government Employees.

• It generates your Salary Sheet automatically.

• It calculates H.R.A. Exemption U/s 10(13A automatically.

• It creates Form 16 Part A and Part B automatically.

• It prepares Income Tax Form 16 Part B automatically.

• It generates Income Tax Form 12BA automatically.