Which Tax Regime is beneficial for Salaried Individual (below

60 years) for FY 2024-25-

New Tax or Old Tax?
The decision to opt for the old tax regime will depend on the amount of exemptions and deductions available
For example, if an individual has no deductions available to him under
to the assessee.
the old tax regime, it would be beneficial for him to opt for the New tax regime.
On the other hand, if an individual is availing of deductions under Section 80C, Section 80D, and the interest on
a housing loan under Section 24, and others, it would always be beneficial for him to opt for the old tax regime.

It's important to carefully consider the exemptions and deductions available to the assessee
when deciding whether or not to opt for the old tax regime. The breakeven points for
different situations, as outlined in the below table, can help a person determine
which option is more beneficial.

BY N.KRISHNAKUMAR (Retired IOBian)

 NEW TAX REGIME OR OLD TAX REGIME – WHICH IS BENEFICAL FOR SALARIED
INDIVIDUAL (BELOW 60 YEARS) FOR THE FINANCIAL YEAR 2024-25
Gross Standard Tax as Tax as
Income Deduction per per
without Rs. Old Tax New Tax Break even Investments / Payments
reducing Regime Regime
Standard in Rs. in Rs. /Incomes for Salaried individual (Below 60
Deduction Years)
Rs.
7,50,000 50,000 54,600 NIL Up to Rs.7,50,000/- GROSS INCOME, ONLY NEW TAX REGIME IS
BENEFICIAL
7,75,000 50,000 59,800 26,000
Old Tax Regime if deductions other than Standard Deduction
8,00,000 50,000 65,000 31,200 >1,62,500

8,25,000 50,000 70,200 33,800 Old Tax Regime if deductions other than Standard Deduction
>1,75,000

8,50,000 50,000 75,400 36,400 Old Tax Regime if deductions other than Standard Deduction
>1,87,500

8,75,000 50,000 80,600 39,000 Old Tax Regime if deductions other than Standard Deduction
>2,00,000

9,00,000 50,000 85,800 41,600 Old Tax Regime if deductions other than Standard Deduction
>2,12,500

BY N.KRISHNAKUMAR (Retired IOBian)

9,25,000 50,000 91,000 44,200 Old Tax Regime if deductions other than Standard Deduction
>2,25,000

9,50,000 50,000 96,200 46,800 Old Tax Regime if deductions other than Standard Deduction
>2,37,500

9,75,000 50,000 1,01,400 50,700 Old Tax Regime if deductions other than Standard Deduction
>2,43,750

10,00,000 50,000 1,06,600 54,600 Old Tax Regime if deductions other than Standard Deduction
>2,50,000

10,25,000 50,000 1,11,800 58,500 Old Tax Regime if deductions other than Standard Deduction
>2,56,250

10,50,000 50,000 1,17,000 62,400 Old Tax Regime if deductions other than Standard Deduction
>2,62,500

10,75,000 50,000 1,24,800 66,300 Old Tax Regime if deductions other than Standard Deduction
>2,68,750

11,00,000 50,000 1,32,600 70,200 Old Tax Regime if deductions other than Standard Deduction
>2,75,000

11,25,000 50,000 1,40,400 74,100 Old Tax Regime if deductions other than Standard Deduction
>2,81,250

11,50,000 50,000 1,48,200 78,000 Old Tax Regime if deductions other than Standard Deduction
>2,87,500

11,75,000 50,000 1,56,000 81,900 Old Tax Regime if deductions other than Standard Deduction

BY N.KRISHNAKUMAR (Retired IOBian)

 >2,93,750

12,00,000 50,000 1,63,800 85,800 Old Tax Regime if deductions other than Standard Deduction
>3,00,000

12,25,000 50,000 1,71,600 89,700 Old Tax Regime if deductions other than Standard Deduction
>3,06,250

12,50,000 50,000 1,79,400 93,600 Old Tax Regime if deductions other than Standard Deduction
>3,12,500

12,75,000 50,000 1,87,200 98,800 Old Tax Regime if deductions other than Standard Deduction
>3,12,500

13,00,000 50,000 1,95,000 1,04,000 Old Tax Regime if deductions other than Standard Deduction
>3,12,500

13,25,000 50,000 2,02,800 1,09,200 Old Tax Regime if deductions other than Standard Deduction
>3,12,500

13,50,000 50,000 2,10,600 1,14,400 Old Tax Regime if deductions other than Standard Deduction
>3,12,500

13,75,000 50,000 2,18,400 1,19,600 Old Tax Regime if deductions other than Standard Deduction
>3,16,666

14,00,000 50,000 2,26,200 1,24,800 Old Tax Regime if deductions other than Standard Deduction
>3,25,000

BY N.KRISHNAKUMAR (Retired IOBian)

14,25,000 50,000 2,34,000 1,30,000 Old Tax Regime if deductions other than Standard Deduction
>3,33,333

14,50,000 50,000 2,41,800 1,35,200 Old Tax Regime if deductions other than Standard Deduction
>3,41,666

14,75,000 50,000 2,49,600 1,40,400 Old Tax Regime if deductions other than Standard Deduction
>3,50,000

15,00,000 50,000 2,57,400 1,45,600 Old Tax Regime if deductions other than Standard Deduction
>3,58,333

15,25,000 50,000 2,65,200 1,50,800 Old Tax Regime if deductions other than Standard Deduction
>3,66,666

15,50,000 50,000 2,73,000 1,56,000

For Gross Income of Rs.15,50,000 and above
15,75,000 50,000 2,80,800 1,63,800
Old Tax Regime if deductions other than Standard Deduction
>3,75,000
16,00,000 50,000 2,88,600 1,71,600

BY N.KRISHNAKUMAR (Retired IOBian)

 TAX RATES
OLD TAX REGIME NEW TAX REGIME (Section 115BAC)

Net income range Rate Total Income Rate

Up to Rs. 2,50,000
Rs. 2,50,001- Rs.5,00,000
Rs. 5,00,001- Rs. 10,00,000
Above Rs. 10,00,000
For the old tax regime - In the case of a resident individual, a rebate of up to Rs. 12,500 is allowed under Section
87A from the amount of tax if the total income of such individual does not exceed Rs. 5,00,000.
NIL Upto Rs.3,00,000 NIL
5% of the amount by From 3,00,001 to 6,00,000 5% of the amount by
which the taxable which the taxable
income exceeds income exceeds
Rs.2,50,000/- Rs.3,00,000/-
Rs.12,500/- + 20% of the From 6,00,001 to 9,00,000 Rs.15,000/- + 10% of the
amount by which the amount by which the
taxable income taxable income
exceeds Rs.5,00,000/- exceeds Rs.6,00,000/-
Rs.1,12,500/- + 30% of From 9,00,001 to 12,00,000 Rs.45,000/- + 15% of the
the amount by which amount by which the
the taxable income taxable income
exceeds Rs.10,00,000/- exceeds Rs.9,00,000/-
From 12,00,001 to 15,00,000 Rs.90,000/- + 20% of the
amount by which the
taxable income
exceeds Rs.12,00,000/-
Above 15,00,000 Rs.1,50,000/- + 30% of
the amount by which
the taxable income
exceeds Rs.15,00,000/-
Rebate under Section 87A

BY N.KRISHNAKUMAR (Retired IOBian)

For the new tax regime - A resident individual paying tax as per the new tax regime under Section 115BAC shall
be allowed a higher amount of rebate under Section 87A if the total income is up to Rs. 7,00,000. Further, if the
total income of the resident individual marginally exceeds Rs. 7,00,000, he will be eligible for the marginal
rebate.

Health and Education Cess

Every person is liable to pay health and education cess at the rate of 4% on the amount of income tax plus
surcharge.

Default Tax Regime

From FY 2023-24 (AY 2024-25) onwards, the new tax regime will be the default tax regime for all taxpayers. This
means that when you will file your income tax return next year, the new tax regime will be selected
automatically. If you want to continue for the old tax regime, then you will have to specifically opt for it.

Switch between Tax Regimes

An individual can switch between the new tax regime and the old tax regime in every financial year. However,
the facility to switch between the new and old tax regimes is available only for those individuals having salaried
income and does not have business income

Can you opt for different income tax regime while filing ITR vis-à-vis employer?

The income tax laws allow an individual to choose any income tax regime irrespective of what was
communicated to the employer. As a result, if you choose the new tax regime with your employer, you can
also choose the old tax regime while completing your ITR. Ensure that your ITR is filed on or before July 31.
If you are planning to switch from new tax regime to old tax regime at the time of filing income tax return, you
must complete your tax-savings investments and expenditures by March 31, 2025.

BY N.KRISHNAKUMAR (Retired IOBian)

Comparison of exemption/deductions available under the old tax regime and new tax regime
of Section 115BAC

Particulars Old tax regime New tax regime

Standard Deduction of Rs.50,000 Available Available
[Section 16(ia)]
Leave Travel concession [Section Available Not Available
10(5)]
House Rent Allowance [Section Available Not Available
10(13A)]
Official and personal allowances Available Not Available
(other than those as may be
prescribed) [Section 10(14)]
Entertainment Allowance [Section Available Not Available
16((ii)]
Professional Tax [Section 16(iii)] Available Not Available
Section 24(b) – Deduction from Available Not Available for Self Occupied
Income from House Property on Property and
interest paid on housing loan & available for let out property
housing improvement loan. In
case of self- occupied property,
the upper limit for deduction of
interest paid on housing loan is
Rs. 2 lakh.
For Self Occupied Property, if the
loan was taken on or after
01.04.1999, for construction or
purchase of house property –
Maximum Limit is Rs.2,00,000/-
and for Repairs of House property

BY N.KRISHNAKUMAR (Retired IOBian)

– Maximum Limit is Rs.30,000/-
if the loan was taken before
01.04.1999, for construction or
purchase of house property –
Maximum Limit is Rs.30,000/- and
for Repairs of House property also
– Maximum Limit is Rs.30,000/-
For let out property, For
Construction or purchase of house
property - Actual value without
any limit.
Deduction under Sections 80C like Available Not Available
Contribution to PF/PPF/NPS, LIC
premium, Payment towards annuity
Plan, NSC+interest, ULIP, ELSS of
mutual funds, Housing Loan
Principal, Tuition fees for children,
Tax Saver Deposits, Sukanya
Samruddhi Scheme – Maximum
Rs.1,50,000/-
Additional Contribution towards NPS Available Not Available
–Sec 80 CCD(1B) – Max Rs.50,000/-
Deduction towards payments Available Not Available
made to Health Insurance Premium
& Preventive Health Check Up
For Self / Spouse or Dependent
Children Rs.25,000/- (Rs.5,000/- for
preventive health check up,
included in above Limit)
For Parents Rs.25,000/- (Rs.50,000/-
if any person is a Senior Citizen)

BY N.KRISHNAKUMAR (Retired IOBian)

(Rs.5,000/- for preventive health
check up, included in above Limit)
Deduction towards Medical
Expenditure incurred on a Senior
Citizen, if no premium is paid on
health insurance coverge.
Deduction towards payments Available Not Available
made towards maintenance or
medical treatment of a Disabled
Dependent or Paid / Deposited
any amount under relevant
approved scheme (u/s 80DD)
Flat deduction of Rs. 75,000
available for a person with
Disability, irrespective of expense
incurred. The deduction is
Rs. 1,25,000 if the person has Severe
Disability (80% or more)
Please note: If Taxpayer is
claiming deduction u/s 80DD then
its recommended to file form 10-IA
also before filing of return. F
Actual payment towards medical Available Not Available
treatment of self or dependent for
specified diseases (u/s 80DDB)
Deduction limit of
Rs. 40,000 (Rs. 1,00,000 if Senior
Citizen)
Deduction towards interest Available Not Available
payments made on loan for higher
education of self or relative

BY N.KRISHNAKUMAR (Retired IOBian)

(u/s 80E) – Total amount paid
towards interest on loan taken
Deduction towards interest Available Not Available
payments made on loan taken for
acquisition of residential house
property where the loan is
sanctioned between 1st April 2016
to 31st March 2017 (Section 80 EE) –
Deduction limit of Rs.50,000/- on the
interest paid on loan taken
Deduction available only to Available Not Available
individuals towards interest
payments made on loan taken
for acquisition of residential
house property for the first time
where the loan is sanctioned
between 1st April 2019 to 31st
March 2022 & deduction
should not have been claimed
u/s 80EE (Section 80 EEA) -
Deduction limit of
Rs.1,50,000/- on the interest
paid on loan taken
Deduction towards interest Available Not Available
payments made on loan for
purchase of Electric Vehicle where
the loan is sanctioned between 1st
April 2019 to 31st March 2023
(Section 80 EEB) - Deduction limit of
Rs.1,50,000 on the interest paid on
loan taken

BY N.KRISHNAKUMAR (Retired IOBian)

Donations to Charitable Institutions Available Not Available
or Funds (Sec 80 G)
Deduction towards rent paid for Available Not Available
house & applicable to only those
who are self-employed or for
whom HRA is not part of Salary
(Sec 80 GG)

Least of the following shall be

allowed as deduction

I) Rent paid reduced by 10%

of Total Income before this
deduction
II) Rs 5,000 per month
III) 25% of Total Income
(excluding long term
capital gains, short term
capital gains under
section 111A or income
under section 115A or
115D)

Note: Form 10BA to be filled for

claiming this deduction.
Deduction on interest received on Available Not Available
saving bank accounts by Non-
Senior Citizens (u/s 80TTA) –
Maximum of Rs.10,000/-
Deductions for a Available Not Available
resident individual taxpayer with

BY N.KRISHNAKUMAR (Retired IOBian)

Disability (u/s 80U)

-Flat Rs. 75,000 deduction for a

person with Disability, irrespective
of expense incurred

Flat Rs. 1,25,000 deduction for a

person with Severe Disability (80%
or more), irrespective of expense
incurred

Please note: If Taxpayer is

claiming deduction 80U then it is
recommended to file form 10-IA
also before filing of return.

BY N.KRISHNAKUMAR (Retired IOBian)