Tax slab budget 2025 New resign VS Old resign comparison.

TAX BUDGET 2025 Summary 

Indian Tax System: Old vs. New Tax Regime

The Indian tax system offers two options for taxpayers: the old tax regime and the new tax regime. Here's a comparison of the two, keeping in mind the 2025 budget changes:

Old Tax Regime

Tax Slabs:

  • Income up to Rs 2,50,000: No tax
  • Rs 2,50,001 to Rs 5,00,000: 5%
  • Rs 5,00,001 to Rs 10,00,000: 20%
  • Above Rs 10,00,000: 30%

Deductions and Exemptions:

Allows for various deductions and exemptions under sections like 80C, 80D, HRA, etc. This can significantly reduce taxable income.

Higher Tax Rates:

Generally has higher tax rates compared to the new regime.

New Tax Regime

Tax Slabs:

  • Income up to Rs 4,00,000: No Tax
  • Rs 4,00,001 to Rs 8,00,000: 5%
  • Rs 8,00,001 to Rs 12,00,000: 10%
  • Rs 12,00,001 to Rs 16,00,000: 15%
  • Rs 16,00,001 to Rs 20,00,000: 20%
  • Rs 20,00,001 to Rs 24,00,000: 25%
  • Above Rs 24,00,000: 30%

Lower Tax Rates:

Offers lower tax rates for various income slabs.

Limited Deductions:

Does not allow for many deductions and exemptions available in the old regime.

Comparison

  • Tax Rates: The new regime generally has lower tax rates, especially for lower income slabs.
  • Deductions: The old regime allows for a wide range of deductions and exemptions, which can significantly reduce taxable income. The new regime offers limited deductions.
  • Choice: Taxpayers can choose between the old and new regimes based on their individual financial situation and preferences.

Which Regime to Choose?

  • Individuals claiming many deductions: The old regime might be more beneficial for those who utilize various deductions and exemptions.
  • Individuals with simpler finances: The new regime might be simpler and more beneficial for those with fewer deductions to claim.

Note: The information provided here is based on the 2025 budget announcements. It's always advisable to consult with a financial advisor or refer to the official income tax department website for the most accurate and up-to-date information.


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