Income Tax: Financial Year 2024-25 has been expired and the process of filing income tax returns (ITR) has started. This year, the last date for filing returns is 31 July 2025. Taxpayer has a chance to choose one of Old Tax Reseam and New Tax Regimulation. New tax regime comes with easy slabs, but it has limited discounts and cuttings. In contrast, many exemption in old tax regime is available. Today we are telling you in detail about these exemption.
Rebate on investment in 80C
If you have invested or spent under provisions like Section 80C (eg PPF, LIC premium), 80D (health insurance), 80G (donation) or 80G (interest on education loan), then you can avail tax exemption on these in Old Tax Period. This can reduce your tax liability significantly.
You are eligible for hra
If you live in a rented house and your salary includes HRA, then you can claim HRA exemption under Section 10 (13A) under the old system. This is not the facility in the new system.
Your income comes in high tax bracket
The highest tax rate of 30% in Old Tax Reset applies to an income of Rs 10 lakh, while this limit in New Tax Regime is Rs 15 lakh, but, if you are able to take full advantage of the exemption in the Olt Tax Reimb, then your tax liability can be reduced significantly.
Benefits are seen compared to tax calculator
Calculate tax in both arrangements using government or reliable tax calculator. The system that shows less tax will be better for you. Tax system in old tax regime
