Salaried and earning ₹8-15 lakh or above? Know when Old Tax Regime can save you more in ITR 2025

There are just 15 days left before the end of the ITR filing deadline for FY 2024-25 (AY 2025-26). Ahead of the due date, many salaried taxpayers are still confused about whether to opt for the old tax regime or the new tax regime.

The biggest question before many salaried taxpayers is how to know which tax regime is better. If you are also among those taxpayers, here are a few quick tips to help you out amid the ITR filing rush.

Second, if your income from sources such as a salary, interest, etc., is up to ₹7.75 lakh, then going with the new tax regime is a no-brainer. This is because income up to ₹7.75 lakh is tax-free in the new regime due to the ₹25,000 tax rebate provided under Section 87A and the ₹75,000 standard deduction.

Whether this rebate applies to long-term and short-term capital gains from equity shares and mutual funds? You may ask. Well, this is a legal grey area.

Third, if your salary income is between ₹8 lakh and ₹15 lakh, then you can choose your tax regime based on whether you claim the following amount of deductions and allowances:

• ₹8 lakh salary: Old tax regime is beneficial if the total deduction is above ₹2.5 lakh

• ₹9 lakh salary: Old tax regime is beneficial if the total deductions is above ₹3 lakh, else go for the new regime.

• ₹10 lakh salary: Old tax regime is beneficial if the total deductions and allowances is above ₹3.5 lakh, else go for the new regime

• ₹12 lakh salary: Old tax regime is beneficial if the total deductions is above ₹4.18 lakh, else go for the new regime

• ₹15 lakh salary: Old tax regime is beneficial if the total deductions and allowances are above ₹4.58 lakh, else go for the new regime

• Salary above ₹15.75 lakh: Check this income tax calculator; old regime may be better up to some income level if you can claim deductions over ₹4.83 lakh.

Please note, the new tax regime is the default regime on the ITR e-filing portal of the Income Tax Department.

However, salaried individuals having no income from any business or profession are allowed to switch from the new regime to the old regime at the time of filing ITR every year.