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House Rent Allowance remains one of the most significant components of tax planning for salaried individuals in India. The rules, however, differ sharply between the old and new tax regimes in 2025. The old regime continues to offer HRA exemption under Section 10(13A) , while the new regime under Section 115BAC has removed this benefit entirely, even if HRA is part of the salary. Understanding how exemption is calculated, who qualifies, and when each regime becomes financia

Choosing between the old and new income tax regimes depends on correct form submission and awareness of the latest rule changes under the Income Tax Act, 1961. Form 10-IE was used earlier to opt into the new regime when the old regime was the default, while Form 10-IEA now serves as the declaration form for taxpayers opting out of the default new regime to choose the old one. These forms ensure accurate tax computation, correct TDS treatment, and smooth filing, especially for

Tax planning for FY 2024-25 revolves around using the revised income tax slabs, maximizing eligible deductions, and aligning investments with the latest Budget reforms. The government’s emphasis on a simplified new regime and increased standard deductions offers individuals more flexibility in optimizing their tax liability. By choosing the right mix of exemptions, salary structuring, and investments, taxpayers can significantly reduce their overall tax outgo while ensuring c

Switching between the  old and new tax regimes  online under the Income Tax Act, 1961 is designed to give flexibility and control to taxpayers. The process differs depending on whether income is from salary, pension, or business/profession. Salaried individuals can change regimes each year during ITR filing, while business or professional taxpayers must file Form 10-IEA before the ITR deadline. These changes reflect the government’s intent to simplify compliance and make regi

Section 115BAC  of the Income Tax Act, 1961, introduces India’s simplified “New Tax Regime,” offering lower tax rates but limited deductions compared to the traditional system. Applicable to individuals, HUFs, and NRIs, this regime aims to streamline tax computation and make compliance easier. With revised slab rates, enhanced standard deductions, and rebate limits, the government has further strengthened its appeal in Budget 2025. These reforms mark a strategic move toward a

The financial year 2024-25 brings a refined version of India’s new income tax regime, aligning simplicity with fairness. The revised tax slabs have widened the income thresholds, providing better relief to middle-income earners. With the rebate under Section 87A making income up to ₹7 lakh tax-free and a standard deduction of ₹50,000 for salaried individuals, the new regime aims to reduce compliance burdens. Health and education cess of 4% and a capped surcharge of 25% ensure

Choosing between the old and new tax regime  for FY 2025–26 depends on income level, deduction eligibility, and overall financial planning. The government’s refinements in Budget 2025, such as enhanced exemption limits and increased standard deduction under the new regime, have significantly altered how taxpayers evaluate both systems. The old regime continues to reward disciplined saving and investment habits, while the new regime simplifies compliance and offers relief thro

Section 87A of the Income Tax Act offers a direct rebate on tax liability for resident individuals whose taxable income falls below a specific threshold. For FY 2025-26 (AY 2026-27), the government has expanded this benefit, raising the new tax regime limit to ₹12 lakh and enhancing the maximum rebate to ₹60,000. This means many salaried and middle-income earners can now effectively pay zero income tax if their net taxable income is within the eligible range. The Section 87A

Employers in India now play a crucial role in managing how salaried employees declare their tax regime preference in Form 16 . From FY 2024–25, with the new regime set as the default under Section 115BAC, Form 16 has been revised to clearly reflect whether the employee chose the old or new regime. This impacts how deductions are considered, how TDS is calculated, and how final tax liability is reported. The updated reporting format reduces mismatches at the time of filing, gi

The New Tax Regime in India, introduced under Section 115BAC , offers simplified slab rates but restricts most commonly used Chapter VI-A deductions. While it reduces paperwork and compliance, taxpayers must weigh whether the Old Regime, with its wide range of exemptions, still provides greater benefits. The Finance Act 2024, applicable from FY 2025-26, revises standard deductions and clarifies which exemptions survive under the new system. Understanding this comparison is es