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Income Tax: New Regime vs Old Regime

Which Income Tax Regime have you opted for in ITR?

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2025

TF Legend
Which Income Tax Regime have you opted for in ITR?
1. Old Regime
2. New Regime
3. Don't Have Taxable Income
4. Prefer not to disclose

Update:
CBDT expects 95-97% of people to opt for the new tax regime in the coming days/years.
The current rate is 72-75%.

Reference:
1. https://www.businesstoday.in/latest...for-salary-up-to-rs-12-lakh-463170-2025-02-03
2. https://pib.gov.in/PressReleasePage.aspx?PRID=2040669

---------
Related thread on income tax slab for FY 2025-26: https://www.technofino.in/community/threads/income-tax-slab-rate-for-fy-2025-26.36101/
 
Last edited:
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2025 said:
Which Income Tax Regime have you opted for in ITR?
1. Old Regime
2. New Regime
3. Don't Have Taxable Income
4. Prefer not to Disclose
Click to expand...
This is how I see the things going forward.

Everyone / most of us will be moved to New Regime..
This option will only be a temporary thing.

How they make us move to new regime is yet to be seen..
1) They either make new tax regime very attracitve or
2) They make the old regime more penalizing.( or less beneficial)

So, people will automaticaly choose the new tax regime..
Currently we are in tranisition period..

Another big news is:

They are totally revamping the Income tax act 1961.. They are rewriting the whole income tax act.. It is in the works as of now..
Very soon , Income tax Act 1961 will be replaced with brand new Income Tax Act iwth brand new chapters .. If not the coming year, the year after , you will see the brand new simplified Income tax act(compared to now) ..... Lets see what happens..

All the best..
 
Last edited:
SSV said:
This is how I see the things going forward.

Everyone / most of us will be moved to New Regime..
This option will only be a temporary thing.

How they make us move to new regime is yet to be seen..
1) They either make new tax regime very attracitve or
2) They make the old regime more penalizing.( or less beneficial)

So, people will automaticaly choose the new tax regime..
Currently we are in tranisition period..

Another big news is:

They are totally revamping the Income tax act 1961.. They are rewriting the whole income tax act.. It is in the works as of now..
Very soon , Income tax Act 1961 will be replaced with brand new Income Tax Act iwth brand new chapters ..
All the best..
Click to expand...
out of everything you've written, I liked the last three words the most.

With the economy slowing completely due to RBI as per "Finance ministry"(https://timesofindia.indiatimes.com/business/india-business/rbi-policies-may-have-contributed-to-eco-slowdown-finance-ministry/articleshow/116692791.cms#:~:text=The finance ministry's report indicates,corporate hiring practices as contributors.)

It is imperative that the new tax regime gives some comfort to the middle class to improve spending. Expect no changes to old tax structure but new one to have 15L tax free. No improvements to PPF interest rate or deductions as they are already puny after rupee touched 86 to a Dollar.


 
jhanishdev said:
out of everything you've written, I liked the last three words the most.

With the economy slowing completely due to RBI as per "Finance ministry"(https://timesofindia.indiatimes.com/business/india-business/rbi-policies-may-have-contributed-to-eco-slowdown-finance-ministry/articleshow/116692791.cms#:~:text=The finance ministry's report indicates,corporate hiring practices as contributors.)

It is imperative that the new tax regime gives some comfort to the middle class to improve spending. Expect no changes to old tax structure but new one to have 15L tax free. No improvements to PPF interest rate or deductions as they are already puny after rupee touched 86 to a Dollar.


Click to expand...
if they do 15L tax free in new scheme....where will the govt get the money to give out as freebies???
 
jhanishdev said:
It is imperative that the new tax regime gives some comfort to the middle class to improve spending. Expect no changes to old tax structure but new one to have 15L tax free. No improvements to PPF interest rate or deductions as they are already puny after rupee touched 86 to a Dollar.

Click to expand...
15L tax free is too much too expect. Even Tax free upto 12L will bring much needed smile in the face of the middle class. They also need to push 20%, and 30% towards 24L, and 36L respectively. Continuation of cess not at all justified.
In this process I am ok even if they remove all optional deductions and exemptions. They should bring everyone under the tax net atleast should ask everyone to pay atleast Rs. 1 tax (voluntarily).

Rather than distributing freebees in different names to different categories of people by different agencies and governments, they should bring common minimum financial support to all citizens by central government. Why discriminate in the name of caste, gender, profession, domicile and what not?
 
i think 8.5 to 9 L tax free is still doable by govt.....that way most of middle class dont have to pay any income tax....they can do tax slabs as follows

9L to 10L - 5%
10L to 13L - 10%
13L - 17L - 15%
17L - 20L - 20%
20L - 25L - 25%
anything above 25L - 30%
 
It's not at all surprising that people now prefer the New Tax Regime.

I am wondering by the fact that none has opted for "no taxable income"?

It seems TF members are good tax paying citizens too.
 
if over all tax outgo is reduced by 15-20% I will opt for New tax regime
else does not make sense if one can claim all valid exemptions
 
oshan said:
if over all tax outgo is reduced by 15-20% I will opt for New tax regime
else does not make sense if one can claim all valid exemptions
Click to expand...
Why wait for a 15-20% reduction?
The new regime does not require much documentation. Hence, it is easy even if both offer the same benefits.
 
2025 said:
Why wait for a 15-20% reduction?
The new regime does not require much documentation. Hence, it is easy even if both offer the same benefits.
Click to expand...

I have all possible exemptions HRA, House Loan, 80C, 80D, LTA etc
after claiming all these I end up paying 15-20% lesser tax when compared to flat tax under new tax regime
If they reduce the total outgo of tax by 15% in the the NTR I will go for it
 
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The New Income Tax regime is the clear winner here. Let's see what tomorrow has in store for us.

Wealth Tax coming?
 
Last edited:
2025 said:
Which Income Tax Regime have you opted for in ITR?
1. Old Regime
2. New Regime
3. Don't Have Taxable Income
4. Prefer not to Disclose
Click to expand...
SSV said:
This is how I see the things going forward.

Everyone / most of us will be moved to New Regime..
This option will only be a temporary thing.

How they make us move to new regime is yet to be seen..
1) They either make new tax regime very attracitve or
2) They make the old regime more penalizing.( or less beneficial)

So, people will automaticaly choose the new tax regime..
Currently we are in tranisition period..

Another big news is:

They are totally revamping the Income tax act 1961.. They are rewriting the whole income tax act.. It is in the works as of now..
Very soon , Income tax Act 1961 will be replaced with brand new Income Tax Act iwth brand new chapters .. If not the coming year, the year after , you will see the brand new simplified Income tax act(compared to now) ..... Lets see what happens..

All the best..
Click to expand...
As expected, old tax regime will see its natural death slowly and new tax regime is going to be mainstream from now onwards…

And again as expected , new revamped and simplified income tax act will kick in soon ..

This govt is making big and rationalised changes to the tax system which was several decades old, paving the way for more modernised system.. all this keeping in view to aim for transitioning into a sort of developed economy in the decades to come.. an indication for preparing the ground for betterment of society as a whole…

All the best guys !!
 
CBDT expects 95-97% of people to opt for the new tax regime in the coming days / years.
The current rate is 72-75%.

Reference:
1. https://www.businesstoday.in/latest...for-salary-up-to-rs-12-lakh-463170-2025-02-03
2. https://pib.gov.in/PressReleasePage.aspx?PRID=2040669

Also, check this thread to know the reason.
2

Thread 'Income Tax Slab & Rate for FY 2025-26'

Hi Friends,

Below are the new income tax slab and applicable rate for FY 2025-26, as per the budget announcement by our Finance Minister dated Feb. 1, 2025.
I have also calculated taxpayers' net savings (based on reference income) for your quick reference based on the recent tax cut announcement after a long time.

Income Tax Slab & Rate (New Tax Regime): FY 2025-26 (Applicable for filling ITR in July/Sept., 2026)
For Individuals (Resident or Non-Resident) less...
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