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News18
19 hours ago
- Business
- News18
Income Tax Return: Old Regime Vs New Regime, Which One Should You Choose For AY 2025-26?
ITR Filing 2025: While the new regime is now the default, the government still gives individuals the option to choose what works best for their finances. Check detailed comparison. Old Income Tax Regime Vs New Regime For ITR Filing 2025: With the income tax return (ITR) filing season for the assessment year 2025-26 (financial year 2024-25) underway, taxpayers are again facing the question: Should I opt for the old tax regime or the new one? While the new regime is now the default, the government still gives individuals the option to choose what works best for their finances. Here's a detailed comparison between the old income tax regime and the new regime: What Is the Old Tax Regime? The old tax regime is the income tax system that offers a wide range of exemptions and deductions, allowing taxpayers to reduce their taxable income by claiming benefits such as Section 80C (up to ₹1.5 lakh) for investments in PPF, ELSS, LIC, etc; house rent allowance (HRA); leave travel allowance (LTA); interest on home loan (Section 24); health insurance premium (Section 80D); education loan interest (Section 80E); and standard deduction (Rs 50,000 for salaried individuals). Old Regime Tax Slabs (FY 2024-25): Note: Rebate under Section 87A is available for taxable income up to Rs 5 lakh (i.e., no tax liability if total income is within Rs 5 lakh). Introduced in Budget 2020 and revamped in Union Budget 2023, the new tax regime offers lower tax rates but no major exemptions or deductions (except a few like NPS employer contribution and standard deduction from FY 2023-24). Note: Standard deduction of Rs 50,000 is allowed for salaried/pensioners from FY 2023-24 onwards, even under the new regime. Key Differences Between Old and New Regimes: Who Should Choose the Old Regime? 'You may benefit from the old regime if you claim large deductions under 80C, 80D, HRA, or home loan interest; you have invested in tax-saving instruments like PPF, ELSS, NSC, etc; your employer provides components like HRA, LTA, or reimbursements that reduce taxable salary; or you're a senior citizen availing multiple deductions," said Aman Sharma, a Delhi-based chartered accountant. Giving an example, he said, 'If your gross income is Rs 10 lakh and you claim deductions of Rs 2.5-3 lakh, your taxable income goes down to Rs 7 lakh, making the old regime more attractive." Who Should Choose the New Regime? He added that the new regime is ideal for salaried individuals who don't claim many deductions; freelancers, gig workers, or those with simplified income; young earners who have just started working and haven't made tax-saving investments yet; and individuals who prefer lower tax rates without documentation hassles. Sharma cited an example and said, 'A salaried person earning Rs 9 lakh with no major deductions may pay less tax under the new regime due to lower slab rates and the Rs 50,000 standard deduction." Section 87A Rebate: What Is Applicable For AY 2025-26? Under the new regime, no tax is payable for income up to Rs 7 lakh after the rebate, making it attractive for lower and middle-income earners. Default Regime Status from FY 2023-24 From FY 2023-24, the new tax regime is the default. The CA said if you want to stay in the old regime, you must actively opt for it while filing your ITR. Salaried individuals can inform their employer about their choice at the beginning of the financial year. Switching Regimes: What You Should Know Salaried taxpayers can choose their regime every year while filing ITR. You can tell your employer your preferred regime for TDS purposes, but it's not final as you can change it when filing ITR. It is important to know that business or professional taxpayers can switch only once without restrictions. Which Regime is Better in 2025? Sharma said there's no one-size-fits-all answer. The right regime for you depends on how much you earn, how much you invest or spend on eligible deductions, and your preference for simplicity vs savings. As a thumb rule, choose the new regime if you have fewer deductions and want simplicity, he added. 'Stick to the old regime if you can claim significant tax deductions, especially if your income is above Rs 10 lakh," he said. Taxpayers are advised to use the income tax department's calculator or consult a tax advisor to make an informed choice before filing your ITR for AY 2025-26. ITR Filing Last Date 2025 top videos View all The last date to file the income tax return for AY 2025-26 (FY 2024-25) is September 15, 2025. However, for the ITRs that require audit, the deadline is October 31, 2025. About the Author Mohammad Haris Haris is Deputy News Editor (Business) at He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously More Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates—only on News18. Also Download the News18 App to stay updated! tags : income tax income tax return ITR filing Location : New Delhi, India, India First Published: July 02, 2025, 12:29 IST News business » tax Income Tax Return: Old Regime Vs New Regime, Which One Should You Choose For AY 2025-26?
India Today
6 days ago
- Business
- India Today
Why saving 30% of your income isn't always possible, CA explains
Most of us have heard the golden money rule of saving at least 30% of your income every month. But is this really practical for everyone? Many young earners and families living in big cities would say no, and they're not finance advisor and CA Abhishek Walia argues that this rule doesn't accommodate the diverse financial realities many individuals wrote on LinkedIn, "Why saving 30% of your income isn't always possible (and that's okay). Save at least 30% of your income every month. You've probably heard this golden rule in every personal finance blog, podcast, or YouTube video." He added, "But here's the thing nobody tells you: if you're living in a metro, paying EMIs or high rent, supporting parents, or building your career from scratch... Saving 30% can feel impossible."This is the reality for millions today. Big city rents, loan repayments, daily expenses, and family responsibilities can make saving feel like a luxury. For those supporting families or beginning their careers, setting aside a significant portion of their income can be particularly further says that not meeting this savings benchmark should not lead to feelings of financial irresponsibility. "Personal finance is personal," he reminds us, emphasising that financial situations are varied and suggests that there are periods where saving even a modest 5-10% can be considered a success, and there are times when prioritising an emergency fund is more crucial than investing in systematic investment plans (SIPs).For some, investing in skills or education could be more useful than forcing big savings targets. 'There are years when investing in your skills brings better ROI than locking cash into ELSS,' Walia says.A practical framework suggested by him includes tracking expenses to understand where money is allocated, saving realistic amounts—even if it's just Rs 1,000 a month, and focusing on increasing income rather than merely cutting advocates for automating small financial wins and maintaining consistency over seeking perfection. "You're not behind - you're just building your base. And that's powerful in itself," he insights resonate with many who struggle to meet conventional savings goals. He stresses that everyone's financial journey is different and that financial advice is not one-size-fits-all.- EndsMust Watch
Time of India
6 days ago
- Business
- Time of India
Best gilt mutual funds to invest in June 2025
Mutual fund advisors are recommending gilt funds to 'aggressive' or 'sophisticated' debt investors as they believe that gilt funds are likely to offer superior returns when the RBI may start cutting interest rates. They say gilt funds have the potential to offer double-digit returns in a falling interest rate scenario. If you want to benefit from a likely fall in interest rates, you may take a close look at gilt mutual funds . However, be forewarned: gilt funds are risky and they are extremely sensitive to changes or likely changes in the interest rate scenario. That is why these schemes are recommended to only informed investors who are ready to take risk and have a long investment horizon. Also Read | Consistent performers: 10 equity mutual funds deliver over 30% CAGR in 3 and 5-year periods Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » Gilt funds are not recommended to regular debt investors because they are risky and volatile. Gilt funds suffer the most when the rates go up. The bond prices and yields move in opposite directions. When the rates go up, bond prices come down. This drags down the NAVs of schemes. What are gilt mutual funds? Gilt funds are debt mutual funds that invest in government-securities or G-secs. As per Sebi norms, these schemes must invest 80% of their corpus in government securities. As you see, these schemes invest in government papers or they lend to the government. Therefore, they don't have any credit risk or they face zero defaults. However, they are extremely sensitive to interest rate changes. Live Events These factors make investing in gilt funds extremely tricky. You should be well-informed about interest rate changes in the economy. For example, interest rates are supposed to go up in a few months. And interest rate cycles usually last for a few years. As said earlier, this will have an adverse impact on gilt schemes. Also Read | 5 ELSS mutual funds with highest cash holding in portfolios, Parag Parikh ELSS Tax Saver Fund holds maximum Does that mean you should not invest in these schemes? Not really. But you should invest only if you have the time to wait for the interest rate cycle to turn around. This will help investors to benefit from soft interest rates. These schemes have the potential to offer double-digit returns when rates start falling or in anticipation of interest rate falls. Here are our recommended gilt schemes. Nippon India Gilt Securities Fund has been in the third quartile for the last 10 months. The scheme had been in the fourth quartile earlier. Aditya Birla Sun Life Government Securities Fund has been in the third quartile for the last 14 months. Bandhan Government Securities Fund has been in the second quartile in the last month. The scheme had been in the third quartile earlier. Please follow our monthly updates to keep track of your investments. Best gilt funds to invest in June 2025: Nippon India Gilt Securities Fund Bandhan G-Sec Fund SBI Magnum Gilt Fund ICICI Prudential Gilt Fund Aditya Birla Sun Life Government Securities Fund Methodology: has employed the following parameters for shortlisting the debt mutual fund schemes. 1. Mean rolling returns: Rolled daily for the last three years. 2. Consistency in the last three years: Hurst Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H. i)When H = 0.5, the series of returns is said to be a geometric Brownian time series. This type of time series is difficult to forecast. ii)When H <0.5, the series is said to be mean reverting. iii)When H>0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the series 3. Downside risk: We have considered only the negative returns given by the mutual fund scheme for this measure. X =Returns below zero Y = Sum of all squares of X Z = Y/number of days taken for computing the ratio Downside risk = Square root of Z 4. Outperformance: Fund Return – Benchmark return. Rolling returns rolled daily is used for computing the return of the fund and the benchmark and subsequently the Active return of the fund. Asset size: For debt funds, the threshold asset size is Rs 50 crore
India Today
24-06-2025
- Business
- India Today
Over 25.5 percent of women filed ITRs in FY24, up from last year
The number of women filing income tax returns in India has increased strongly by 25.3 per cent in the last four years, from 1.83 crore in the assessment year (AY) 2019-20 to more than 2.29 crore in AY 2023-24, according to studies carried out by the Income Tax shows that more women are getting well-paid jobs or running their own business, a senior official total number of income tax returns (ITRs) - both by individuals and corporates - exceeded 7.97 crore during AY data revealed that Maharashtra had the highest number of women ITRs with 36,83,457 in AY24, with a growth of 23 per ranked second with 22,50,098 women filing ITRs with a significant growth of 24.4 per cent, while Uttar Pradesh came third with 20,43,794 ITRs and a strong growth of 29.2 per cent during this period. Growth rates were similarly noted in other larger states as well. The number of women filing ITR in Tamil Nadu grew by over 20 per cent from AY20 to AY24, rising from 12,92,028 in AY20 to 15,51,769 in AY24. In Karnataka, the increase was 20 per cent from AY20 to AY24, with women filers growing from 11,34,903 to 14,30,345. Similarly, in Punjab, the increase recorded was 36.23 per cent, growing from 9,70,801 in AY20 to 13,22,580 in AY24, while Rajasthan's increase was 25.49 per cent to 13,52, of Women Filing ITRs2019-201.83 crore2020-211.87 crore2021-222.02 crore2022-232.15 crore2023-242.29 croreadvertisementSimilar gains were recorded in lower-population states and Union Territories, with J&K and Mizoram recording a substantial rise in the number of women filing income-tax returns between 2019-20 and recorded a 96 per cent increase in the number of women filers (2,090), while J&K recorded a 49.2% increase in women filing income-tax returns, an increase of 1,17, an income tax return may sound difficult, but it's quite easy now, especially with everything available online. Here's a step-by-step guide:Step 1: Register on the Income Tax WebsiteGo to the official portal: on 'Register' (if new user) or 'Login' (if already registered).Use your PAN number, email, and mobile number to sign 2: Choose the Correct Assessment YearFor income earned in April 2023–March 2024, choose AY 2024– 3: Select the Right ITR FormSalaried individuals generally use you have business or freelance income, it could be ITR-3 or 4: Collect All DocumentsForm 16 (from the employer)Bank statementsTDS certificatesInvestment proofs (LIC, PPF, ELSS etc.)Aadhaar, PAN, and bank account detailsStep 5: Fill in the DetailsUse the 'e-File' option after logging can choose pre-filled ITR to make it easier—just cross-check and 6: Verify Your ReturnAfter submission, e-verify it through Aadhaar OTP, bank account, or net step is mandatory to complete the 7: Keep Acknowledgement SafeAfter successful submission, download the ITR-V (acknowledgement receipt).You can use this for a visa, loans, or financial if your income is below the taxable limit, filing ITR helps in building a financial record. It's useful for applying for visas, credit cards, home loans, or even for job background checks.- Ends
Time of India
16-06-2025
- Business
- Time of India
Mitra can save Rs 55,000 tax by opting for NPS, new tax regime
Academy Empower your mind, elevate your skills Madhulika Mitra is a consultant in a management consultancy firm in Gurugram. She earns well, but nearly 15% of her income goes in tax because she has invested in tax-inefficient instruments, doesn't claim all the deductions, and her salary structure is not has now decided to opt for the new tax regime because she will pay lower tax with this option. Even if her company rejigs the pay structure to include tax-friendly perks, tax savings will be lower for her in the old regime. The new regime offers very few deductions and exemptions, but the standard deduction is higher at Rs.75,000, tax slabs are wider and rates are ensure that she saves more tax in the new regime, she should opt for the NPS benefit offered by her company. Under Section 80CCD(2), up to 14% of the basic salary put in the NPS is tax-free. She can save Rs.52,416 if her employer rejigs her salary to reduce the taxable component and put it in the NPS instead. Mitra also pays Rs.2,683 as tax on income from bank deposits. If she switches to debt funds, instead of parking her money in the deposits, she will have to pay tax only at the time of the new tax regime, there is no deduction for health insurance premiums, but she should still consider buying it for her she decides to stay in the old regime, she can reduce her tax liability marginally by asking her employer to rejig her salary structure and offer more deductions. She could also consider reducing her investment in the ELSS funds and PPF to channelise it towards the NPS on her own under Section 80CCD(1b).Paying too much tax? Write to us at etwealth@ with 'Optimise my tax' as the subject. Our experts will tell you how to reduce your tax by rejigging your pay and investments
