The Most Asked Question after Budget 2025 Question: Which Regime is More beneficial New or Old? Answer: If you have deductions u/s 80C, 80D and Intere
The Most Asked Question after Budget 2025
Question: Which Regime is More beneficial New or Old?Answer: If you have deductions u/s 80C, 80D and Interest on Home Loan u/s 24 and Your Income was taxable at the NORMAL rate of tax then Old Regime is Never Beneficial to you, which means in most such cases New Regime is Always Beneficial.
Old Regime is beneficial in some cases like
Old Regime is beneficial
1st Example
Particulars | Amount |
---|---|
Business Income | 4,00,000.00 |
STCG after 23rd July | 1,00,000.00 |
Total Taxable Income | 5,00,000.00 |
Tax in Old Regime | 27,500.00 |
Less: 87A Rebate | -12,500.00 |
Tax Payable | 15,000.00 |
Cess @ 4% | 6,00.00 |
Total Tax | 15,600.00 |
2nd Example
Particulars | Amount |
---|---|
Business Income | 6,00,000.00 |
STCG after 23rd July | 1,00,000.00 |
Total Taxable Income | 7,00,000.00 |
Less: 80C Deductions | -1,50,000.00 |
Less: 80D Deductions | -50,000.00 |
Net Taxable Income | 5,00,000.00 |
Tax in Old Regime | 27,500.00 |
Less: 87A Rebate | -12,500.00 |
Tax Payable | 15,000.00 |
Cess @ 4% | 600.00 |
Total Tax | 15,600.00 |
Tax in New Regime | 30,000.00 |
Less: 87A Rebate | -10,000.00 |
Tax Payable | 20,000.00 |
Cess @ 4% | 800.00 |
Total Tax | 20,800.00 |
Conclusion: if there is a special income and total taxable income after deductions if any is up to Rs.5 lakh then due to the availability of rebate u/s 87A in Old Regime, the old regime is beneficial in such cases but if income was taxable a Normal rate then in most of the instances New Regime is Beneficial
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