Confused in selecting previous and new tax regime, these 5 ideas will assist you – India TV Hindi

The brand new monetary 12 months 2024-25 has began from April 1. In such a state of affairs, individuals have to decide on between the brand new tax regime and the previous tax regime. If you don’t choose any tax regime, the brand new tax regime will mechanically be chosen by default.

In such a state of affairs, many individuals are questioning what’s the distinction between the previous and new tax regime. At the moment on this article we’re going to let you know about these factors, which might help you in selecting your tax regime.

New Tax Regime VS Outdated Tax Regime

1. One of many largest variations between the brand new and previous tax regime is that below the previous tax regime, you get many sorts of earnings tax exemptions below 80C, 80D, 80TTA. On the similar time, no such exemption is accessible within the new tax regime. If you wish to reap the benefits of tax exemption, then the previous tax regime can be higher for you.
2. Solely customary deduction of Rs 50,000 is accessible as exemption within the new tax regime. Nevertheless, this profit can also be given to employed individuals within the previous tax regime.
3. Below the brand new tax regime, earnings of Rs 7.5 lakh comes below the ambit of tax exemption. On this, 10 % low cost is accessible on earnings between 6 to 9 lakh, 15 % on earnings between 9 to 12 lakh, 20 % on earnings between 12 to fifteen lakh and 30 % on earnings above 15 lakh.
4. Within the previous tax regime, earnings as much as Rs 5 lakh is tax free. Whereas earnings of Rs 5 to Rs 10 lakh is taxed at 20 % and earnings of greater than Rs 10 lakh is taxed at 30 %.
5. If you don’t choose any tax regime whereas submitting earnings tax, then the brand new tax regime will mechanically be chosen and you’ll have to deposit tax accordingly.

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