New vs. Old Tax Regime

 New vs. Old Tax Regime – FY 2024-25: Detailed Comparison for Tax Planning

As we step into the new financial year, many professionals and taxpayers face the question: 👉 Should I opt for the New Tax Regime or continue with the Old one? Here’s a complete side-by-side comparison of deductions, exemptions, and benefits available under both regimes for FY 2024-25, to help you make an informed choice: 🔍 Rebate: ✅ New Regime – ₹7,00,000 ✅ Old Regime – ₹5,00,000 💰 Capital Gains Rebate: ❌ STCG u/s 111A – Not available in New, ✅ Available in Old ❌ LTCG u/s 112A – Not available in New, ✅ Available in Old 📄 Standard Deduction: ✅ ₹75,000 (New) | ₹50,000 (Old) 🏠 Exemptions Not Available in New Regime (but ✅ Available in Old): House Rent Allowance (HRA) Leave Travel Allowance (LTA) Food Allowance Professional Tax LIC/PF/PPF (Section 80C) NPS Employee Contribution Mediclaim (Section 80D) Disabled Individual (Section 80U) Education Loan Interest (Section 80E) EV Loan (Section 80EEB) Political/Trust Donation (Section 80G/80GGC) Savings Bank Interest (Section 80TTA/80TTB) 💼 Exemptions/Deductions ✅ Available in Both Regimes: 30% Additional Employee Cost (Section 80JJAA) Reimbursement of Office Expense NPS Employer Contribution 14% for all (New) 12% (Non-Govt) / 14% (Govt) in Old Home Loan Interest (for Rent Property) Family Pension Deduction – ₹15,000 VRS Exemption (Section 10(10C)) Gratuity (Section 10(10)) Leave Encashment (Section 10(10AA)) Transport for specially-abled ❌ Not Available in New Regime but ✅ Valuable in Old: Home Loan Interest (Self-Occupied Property) 🧠 Conclusion: 🔹 The New Regime offers a higher rebate and standard deduction, and simplified compliance, but does not allow most exemptions and deductions. 🔹 The Old Regime continues to support tax-saving investments and expenses, ideal for those with housing loans, LIC, PF, HRA claims, etc. 💡 Tip: Use a tax calculator or consult a tax professional to choose the regime that best suits your income structure and financial goals.

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