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Leave Travel Allowance (LTA) exemption for FY 2024-25 is available only to salaried employees opting for the old tax regime under Section 10(5) of the Income Tax Act, 1961. The exemption applies solely to travel within India and covers expenses incurred by the employee and eligible family members. It excludes accommodation, food, and other local costs. LTA can be claimed for up to two journeys in a four-year block, with the current block being 2022–2025. The claim amount is

House Rent Allowance (HRA) remains one of the most significant tax-saving components for salaried individuals. For FY 2024-25, the HRA exemption under Section 10(13A) of the Income Tax Act is available only under the old tax regime. It helps employees reduce their taxable income if they live in rented accommodation and meet specific eligibility conditions. With updated ITR reporting requirements and stricter documentation rules, understanding how to calculate and claim HRA e

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

Taxpayers in India often wonder if they can switch their tax regime after filing their Income Tax Return (ITR) . The Income Tax Act provides two options: the old regime with deductions and exemptions, and the new regime under Section 115BAC with lower rates but limited exemptions. While salaried individuals may have flexibility through revised returns, business and professional taxpayers face tighter restrictions. Understanding these rules is essential to avoid mistakes, pena

Choosing the right tax regime in India is one of the most important financial decisions for any taxpayer. With two options available under the Income Tax Act, 1961—the old regime with multiple deductions and exemptions, and the new regime with lower tax rates but limited benefits—picking the right one can significantly impact overall tax liability. Many individuals make avoidable mistakes such as failing to compare both regimes, claiming ineligible deductions, or not informin

The choice between the old and new tax regime  for pensioners in India depends on how tax slabs, deductions, and exemptions align with individual income patterns. Pension income, senior citizen-specific benefits, and interest exemptions play a critical role in determining the right option. Pensioners with significant deductions often benefit from the old regime, while those with simpler incomes may find the new regime easier. Table of Contents Regime Choice for Pensioners: Ol

The choice between the old and new tax regime is one of the most important financial decisions for salaried professionals in India. The old regime allows multiple deductions and exemptions, such as HRA, 80C, and 80D, while the new regime offers reduced tax rates with fewer deductions. Deciding which regime is better depends on salary structure, investments, and tax-saving preferences. Both systems serve different types of taxpayers, and a detailed comparison ensures that sala

The future of the old tax regime has been the subject of ongoing speculation, especially with the implementation of the new Income Tax Act, 2025. From April 1, 2026, the new regime becomes the default option, but the old regime remains available. Current reforms focus on modernising the law and simplifying compliance, not on removing the older system. Taxpayers can continue choosing the old regime if they prefer deductions and exemptions, making it clear that the government h

Assisted filing and DIY filing each offer distinct benefits when it comes to choosing the right income tax regime under the Indian Income Tax Act, 1961. The decision affects overall compliance, accuracy of reporting, and the ability to optimise deductions and exemptions. With evolving rules, adjusted tax slabs, and shortened compliance timelines, selecting between the old and new regimes is not just about saving tax but also about avoiding errors. Platforms like TaxBuddy h