Filing your Income Tax Return (ITR) is now easier and more flexible than ever. For the financial year 2024-25, the Income Tax Department offers taxpayers a choice between the Old Tax Regime and the New Tax Regime—each with its own set of benefits. If you’re confused about which one is better for you, don’t worry. Here's a simple guide to help you compare both regimes and calculate your tax liability using the official e-filing portal.
You don’t need to hire a tax expert to figure out which regime suits you best. The Income Tax Department’s e-filing portal provides an easy calculator. Follow these steps:
Visit the e-filing portal.
Log in using your PAN number and name.
Choose the type of filer:
Individual
Firm
Company
Institution
Select your tax regime – Old or New.
Choose your age category:
Regular Citizen (below 60)
Senior Citizen (60–79)
Super Senior Citizen (80+)
Enter your total annual income and any deductions claimed (if using the old regime).
The portal will display:
Taxable income
Deductions
Tax under both regimes
Click ‘View Comparison’ to see which option saves more tax.
This online calculator provides a clear and accurate summary, making it easier to plan your finances and avoid errors during ITR filing.
| Criteria | New Tax Regime | Old Tax Regime |
|---|---|---|
| Income up to ₹12 lakh | Zero tax (under new slab) | Taxable with applicable deductions |
| Deductions | Limited (No 80C, 80D, HRA, etc.) | Extensive (80C, 80D, HRA, LTA, etc.) |
| Standard Deduction | ₹50,000 allowed | ₹50,000 allowed |
| Flexibility | Simple slabs, fewer exemptions | Multiple exemptions and rebates |
| Who should opt | Those with low investments/deductions | Those with high investments/deductions |
Yes! For salaried individuals, you can switch between tax regimes every year. However, for those with income from business/profession, the change can only be done once in a lifetime, unless the business ceases to exist.
Even if your income is below the taxable limit, filing your ITR can offer several advantages:
Required for loan approvals and visa processing
Helps in claiming tax refunds
Acts as proof of income
Necessary for high-value investments
Keeps your financial records clean and transparent
Zero tax for income up to ₹12 lakh under the new regime
Revised slabs introduced in Budget 2024 to benefit middle-class earners
Better clarity on deductions and compliance via online tools
Standard deduction retained under both regimes
If you want maximum tax savings and have invested in eligible schemes, the old tax regime might be the better option. However, if you prefer simplicity with minimal documentation, the new tax regime could save you time and effort.
Use the online calculator on the Income Tax portal to make an informed choice and file your ITR hassle-free.
