The financial year 2024-25 is over and the process of filing Income Tax Returns (ITR) has started. This year, the last date for filing returns is 31 July 2025. Taxpayers have the option to choose between the Old Tax Regime and the New Tax Regime. The New Tax Regime comes with easy slabs, but the exemptions and deductions are limited. In contrast, the Old Tax Regime offers the benefit of many exemptions. Today we are telling you about these exemptions in detail.

Exemption on investment in 80C
If you have made investments or expenses under provisions such as Section 80C (such as PPF, LIC premium), 80D (health insurance), 80G (donation), or 80E (interest on education loan), then you can avail of tax exemption on these in the Old Tax Regime. This can significantly reduce your tax liability.

You are eligible for an HRA exemption.
If you live in a rented house and your salary includes HRA, you can claim HRA exemption under Section 10(13A) under the old regime. This facility is not available in the new regime.

Your income falls in a higher tax bracket.
The highest tax rate of 30% in the old tax regime applies to income of Rs 10 lakh, while in the new tax regime, this limit is Rs 15 lakh. However, if you can avail full benefits of exemptions in the old tax regime, your tax liability can be significantly reduced.

Compare with a tax calculator to see the benefits.
Calculate tax in both regimes using a government or reliable tax calculator. The regime that shows lower taxes will be better for you. The tax system in the old tax regime may be more beneficial for taxpayers who take full advantage of exemptions and deductions. Review investments and expenses and compare both regimes before making a decision. With the right choice, you can reduce your tax liability and save more.

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