The Government of India allows taxpayers to choose between two regimes every financial year. While the New Tax Regime is now the default option, you can still opt for the Old Regime if it provides better savings through traditional deductions.
| Income Slab | New Regime (Default) | Old Regime (Optional) |
|---|---|---|
| Up to ₹3.0 Lakh | Nil | Nil (up to ₹2.5L) |
| ₹3.0L – ₹7.0 Lakh | 5% (Tax-free up to ₹7L*) | 5% |
| ₹7.0L – ₹10.0 Lakh | 10% | 20% |
| ₹10.0L – ₹12.0 Lakh | 15% | 30% |
| ₹12.0L – ₹15.0 Lakh | 20% | 30% |
| Above ₹15.0 Lakh | 30% | 30% |
*Under Section 87A, individuals with total income up to ₹7 Lakh pay Nil tax in the New Regime due to a full tax rebate.
Standard Deduction is ₹75,000 (for Salaried/Pensioners only). Focuses on lower rates without specific investment-based exemptions.
Ensures savings for those who claim 80C, 80D, HRA, and Home Loan Interest. Best suited for high-liability individuals.
An HUF is a separate taxable entity. While tax slabs for HUF are identical to those of individuals, there are critical differences in benefits and deductions.
| Income Slab | New Regime (HUF) | Old Regime (HUF) |
|---|---|---|
| Up to ₹2.5 Lakh | Nil | Nil |
| ₹2.5L – ₹3.0 Lakh | Nil | 5% |
| ₹3.0L – ₹5.0 Lakh | 5% | 5% |
| ₹5.0L – ₹7.0 Lakh | 5% | 20% |
| ₹7.0L – ₹10.0 Lakh | 10% | 20% |
| Above ₹10.0 Lakh | 15% to 30% | 30% |
HUF is NOT eligible for the ₹75,000 Standard Deduction. This benefit is reserved for salaried individuals and pensioners.
The "Zero tax up to ₹7L" rebate is NOT available to HUFs. Tax is payable on all income above the primary exemption limit.
HUFs can claim deductions for insurance premiums paid for members, but only under the Old Tax Regime.
Insurance products are cornerstones of both financial security and tax efficiency in the Old Regime.
Premiums for life insurance (Self/Spouse/Kids) are deductible up to ₹1.5 Lakh per year. This includes Term, Endowment, and Whole Life plans.
Deductions on Mediclaim premiums:
Life insurance maturity proceeds remain 100% Tax-Free provided the annual premium is less than 10% of the sum assured.
How your capital gains are taxed depends on the asset type and holding period (Revised LTCG rules).
| Product | Short Term (STCG) | Long Term (LTCG) |
|---|---|---|
| Equity Mutual Funds | 20% (if sold < 1 year) | 12.5% (above ₹1.25L gain) |
| Debt Mutual Funds | As per Income Slab | As per Income Slab |
| ULIPs | Nil (u/s 10(10D))* | Nil (u/s 10(10D))* |
| Listed Bonds | Income Slab (Interest) | 12.5% (Without Indexation) |
*ULIPs are tax-free if the aggregate annual premium does not exceed ₹2.5 Lakh. For higher premiums, they are taxed like equity MFs.
Maximize your "Keep" amount by leveraging instruments that offer zero tax on investment, interest, and maturity.
The gold standard for safe investing. 100% Tax-Free interest and maturity. Invest up to ₹1.5L/year.
Best for the girl child. Higher interest rates and completely tax-free proceeds.
Tax-free interest up to ₹2.5 Lakh annual contribution (for private employees).
The tax code offers additional breathing room for those aged 60 and above under the Old Regime.
Exemption limit is ₹3 Lakh for seniors (60-80 yrs) and ₹5 Lakh for super-seniors (80+ yrs).
Medical insurance premiums and even medical expenses (if no insurance) are deductible up to ₹50,000.
Senior citizens don't pay tax on interest income from banks/post offices up to ₹50,000 per year.
Don't miss out on these common deductions before the March 31st deadline.
Have you utilized the full ₹1.5 Lakh limit with LIC, PPF, or ELSS?
Claim up to ₹50,000 extra by paying health insurance for your senior parents.
Claim a deduction of ₹5,000 within your 80D limit.
Invest an extra ₹50,000 in NPS under section 80CCD(1B).
The rules can be complex, but we've made them simple. Use our professional tax calculator to see your exact savings based on your specific income and investments.
Go to Tax CalculatorsYes! Salaried individuals (those without business income) have the flexibility to choose the most beneficial regime each year at the time of filing their income tax return.
Actually, under the July 2024 Budget, the standard deduction for salaried individuals was increased to ₹75,000 ONLY for the New Tax Regime. In the Old Tax Regime, the standard deduction remains ₹50,000.
Typically, if you have significant deductions like Home Loan Interest (up to ₹2L), 80C, and 80D, the Old Regime usually results in lower tax. However, with the lower rates of the New Regime, it is always best to run a comparison calculation.
Under the Budget 2024 updates, the Long Term Capital Gains (LTCG) tax on property and other non-financial assets has been simplified to 12.5% without indexation. This replaces the earlier 20% with indexation benefit.
No. Under Section 56(ii) of the Income Tax Act, any sum of money or property received as a gift from "specified relatives" (including parents, spouse, siblings) is completely tax-exempt regardless of the amount.
You can claim an additional deduction of up to ₹50,000 under Section 80CCD(1B) by investing in the National Pension System (NPS). This is over and above the standard ₹1.5 Lakh limit of Section 80C.
Yes. Under Section 80D, if your parents are aged 60 or above and do not have health insurance, you can claim a deduction of up to ₹50,000 for their actual medical expenses in a financial year.
