Income Tax: What is the difference between the new and old regime, know which regime is better..

Income Tax: Recently, the Income Tax Department has issued all the forms related to ITR. Whereas, the last date for filing ITR is 31st July. It is also necessary to file an income tax return on time to get a tax refund on time. Also, one has to choose between the old and the new tax regime.

While filing income tax, you will get two options.

While filing an income tax return, you will get two options from the Income Tax Department. You can choose between the old tax regime and the new tax regime. Both regimes have their advantages and disadvantages. Income tax filers are also confused about which regime to choose.

Exemption for salaried person

According to the Income Tax Department, recently, only salaried taxpayers have the exemption that they can switch from the new tax regime to the old tax regime from one financial year to another. They can do the opposite as well.

Provisions in the old tax regime

Let us tell you that in the old tax regime, taxpayers are given the benefit of section 80C, leave travel allowance, and rent allowance. At the same time, the benefit of section 80C can also be availed by investing in different tax savings. Tax (Income Tax) of Rs 1.5 lakh can be waived in section 80C.

In such a situation, if you have applied for any such scheme where you get the benefit of section 80C or any allowance is given, you can reduce tax. The old tax regime (Income Tax) will be the better option.

For whom is the new tax scheme right

At the same time, recently in February, the new tax regime was made more affordable in the budget by the central government. Taxpayers get tax free income up to Rs 12.75 lakh. There is no tax on income up to Rs 12 lakh. If you are not getting the benefit of 80C then the new tax regime (Income Tax) is better for you.

Easy calculation of tax

In the new tax regime, the calculation of tax has been made easy. You can also decide by calculating tax in both the tax (Income Tax) regimes. Tax calculation will help you choose which regime you should stay in. You can calculate this by visiting the website of the Income Tax Department.

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