New vs Old Regime: Which is better in AY 24-25?

Income Tax Tax Savings & Deductions
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21

Hey @Shiv_Katira,

Yes, in the case of just salary income, the regime can be switched every FY. There’s no restriction on the same.

22

If i have ltcg of 4lakhs will I get basic exemption limit of 3 lakhs plus 1 lakh ltcg limit or will I have to pay tax for 1 lakh ,if I have 0 salry or other income

23

Hey @venu206,

If you are filing under the new tax regime, in this case, your tax liability would be zero.

24

Hi @Surbhi_Pal ,

Do I need to file Form 10IE to file with New Tax Regime ? My Form 16 will be issued with Old Tax Regime. But I want to file in New Tax Regime only.

And based on the previous replies I would be filing ITR-3 this time. As you mentioned previously that once ITD releases forms for ITR-3 this would be clear.

25

Hey @enigma,

As the new regime is made default FY 23-24 onwards, form 10-IE was discontinued.
So, if you have income from business or profession, you will have to file form 10-IEA to opt for the new regime.

Here’s a thread that would clarify more: Form 10IEA for opting into old regime

26

Hi @Surbhi_Pal ,

While checking Form 10-IEA it seems that there is no option to opt for new regime. Opting to Old regime is the default option (and greyed out). The other fields are editable.
Does this mean I do not have to file Form 10-IEA since I am staying with New Regime while filing ITR AY 24-25, although with my employer I had selected Old Regime for FY 23-24 ?

27

Form 10-IEA is for taxpayers with business/profession income who want to opt for the old regime.

If you are staying with the default regime, i.e., the new regime, you do not have to file Form 10-IEA.

29

@Surbhi_Pal
So this time I can directly start filing in New Tax Regime without any issue. If I had to stay in Old Regime which I had selected with my employer at the start of the FY 23-24 then I would need to file Form 10-IEA provided I would be filing ITR-3 for AY 24-25.

I hope my understanding is correct ?

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30

Yes, that is correct.

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31

Thank you @Surbhi_Pal

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32

Thank you maam. You only helped me in this selection of Old and New Regime.

33

Thank you for sharing.

34

Hi Quicko has a great tool to compare new and old tax regimes. Please update it for current financial year 2024-25.

https://tools.quicko.com/income-tax-calculator/

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35

Hi @radhesh23k,

I’ve passed on the message to the product team:)

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36

Hi @Surbhi_Pal,

Can I expect new comparison table for the proposed rate changes? And are these proposed changes applicable for the income earned during FY 24-25?

37

Hey @Shiv_Katira,

Yes, these rates will be applicable from FY 24-25. Will write about the comparison in detail soon:)

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38

Hi @Surbhi_Pal , just following up. Have you posted new comparison?

39

I’ve posted in this thread: Which tax regime to choose after changes announced in Budget 2024? | AY 2025-26

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