From 1 April 2025, a new tax structure will be implemented across the country. After this, those who get salary of up to 12 lakh will end the income tax tension, but for this they will have to choose the new tax regime. Now the question arises that those whose salary is more than 12 lakh rupees and they have chosen New Tax Regim, then they will benefit or disadvantage. Along with this, the second question arises, who have chosen the Old Tax Regime and their salary is more than 12 lakhs, then they will benefit or loss?
If you also have a similar question and you have not yet understood the difference between Old Tax Regim and New Tax Regim, then there is no need to get upset, because here we are telling you in detail in detail about both these tax regimens.
Users who switch to New Tax Reseem from Old Tax Reseem must first know that new tax regime will be better for them or will benefit in Old Tax Reseem. Let us tell you that in the Old Tax Reseam, there is a discount in section 80D for 80C, NPS, HRA, 80 TTA and health insurance premiums, while the new tax regime gets a few discounts, deducting under Section 80CCD (2) for the contribution of the employer to the NPS. Also, tax exemption is available on the amount for telephone and transportation.
For example, the CTC of an employee is currently Rs 25 lakh and who has always chosen the Old Tax Resetam to save income tax, the income tax slab is going to change in New Tax Reseam since April 1, 2025. In such a situation, now he will benefit from New and Old Tax Regies.
For example, the CTC of an employee is currently Rs 25 lakh and who has always chosen the Old Tax Resetam to save income tax, the income tax slab is going to change in New Tax Reseam since April 1, 2025. In such a situation, now he will benefit from New and Old Tax Regies.
The index below shows different details of CTC of Rs 25 lakh for Old Tax Reseam (OTR) and new tax regime (NTR). This is because the contribution of the employer in the NPS account vary. In the chronic tax system, a deduction of up to 10% of the basic salary under Section 80CCD (2) is allowed, while in the new tax system it is set to 14%.
| Description | Old Tax Regime | New tax regime |
| Total salary | 20,31,900 | 20,31,900 |
| Car Lease Perquisite Value (<00 CC Engine) | 21,600 | 21,600 |
| Gross pay | 20,53,500 | 20,53,500 |
| Mobile Reimbursment | 50,000 | 50,000 |
| Conveyance reimbursment | 2,40,000 | 2,40,000 |
| Car Leasing Amount | 3,00,000 | 3,00,000 |
| Net pay | 14,63,500 | 14,63,500 |
| Lta exemption | 1,00,000 | 0 |
| Standard deduction | 50,000 | 75,000 |
| Hra exemption | 2,60,000 | 0 |
| Food coupons | 26,400 | 0 |
| Taxable Salary | 10,27,100 | 13,88,500 |
| Section 80C deduction | 1,50,000 | 0 |
| Employer's NPS Contribution | 100,000 | 1,40,000 |
| NPS deduction of Rs 50000 | 50,000 | 0 |
| Exemption in section 80tta | 10,000 | 0 |
| Sexon 80D insurance premium discount | 50,000 | 0 |
| Net taxable salary | 6,67,100 | 12,48,500 |
| Tax amount | 47,757 | 50,440 |
However, if you have abolished the option for deduction and discounts and there is a possibility of paying more income tax under the old tax system, then switch to the new tax system. This will save more tax and the process will be more streamlined, as it eliminates the need to arrange evidence and keep records to claim cuts and discounts.
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