Confused between old and new tax system, these 5 tips will help you – India TV Hindi

Income Tax- India TV Paisa

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The new financial year 2024-25 starts from 1st April. In such a situation, people have to choose between the new tax system and the old tax system. If you do not select a tax system, the new tax system will automatically be selected by default.

In such a situation, many people are thinking that what is the difference between the old and new tax system? Today in this article we are going to tell you about these points, which can help you in choosing your tax system.

New tax system vs old tax system

  1. The major difference between the new and old tax system is that under the old tax system, you get various income tax exemptions under 80C, 80D, 80TTA. Also, no such exemption is available in the new tax regime. If you want to take advantage of tax exemptions, you will be better off with the old tax system.
  2. Only standard deduction of Rs 50,000 is available as exemption under the new tax regime. However, this benefit is also given to persons employed under the old tax system.
  3. Under the new tax regime, an income of Rs 7.5 lakh comes under the ambit of tax exemption. It offers 10% discount on income between 6 to 9 lakh, 15% on income between 9 to 12 lakh, 20% on income between 12 to 15 lakh and 30% on income above 15 lakh.
  4. Under the old tax system, income up to Rs 5 lakh is tax-free. While the tax is 20% on income between 5 to 10 lakh rupees and 30% on income above 10 lakh rupees.
  5. If you do not select a tax system while filing income tax, the new tax system will be selected automatically and you will have to file tax accordingly.

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