ITR Filing 2025: Like every year, this year too the last date for filing Income Tax Return (ITR) is approaching. In such a situation, questions arise in the minds of taxpayers whether to choose the old tax regime or the new tax regime. Especially for those whose annual income is around Rs 12 lakh.
ITR Filing 2025: The time has come to file income tax, especially employees working in private companies have started manipulating. Meanwhile, most of the employed people are still confused about whether they should go with the new tax slab or the old tax slab is best for them. Under the new income tax regime, there is no tax on income up to Rs 3 lakh.
5% tax is levied on income between Rs 3 to 7 lakh. There will be a 10% tax on income between Rs 7 to 10 lakh. 15% tax will be levied on income between Rs 10 to 12 lakh. 20% tax on income between Rs 12 to 15 lakh and 30% tax on income above Rs 15 lakh will remain the same as before.
You cannot claim many types of tax deductions under the new tax regime. Under the new tax regime, you will not be able to avail tax deductions on section 80C, section 80D, home loan etc. However, you do not have to pay any tax on income up to Rs 12 lakh under this. If you do not want to pay any tax on income up to Rs 12 lakh, then you will have to use the new tax regime for this. Because you do not get this offer under the old tax regime.
| Annual Income | Tax Rate |
|---|---|
| 3 lakh | 0% |
| 3 to 6 Lakh | 0.5% |
| 6 to 9 Lakh | 10% |
| 9 to 12 Lakh | 15% |
| 12 to 15 lakhs | 20% |
| More than 15 lakhs | 30% |
Old Tax Regime
The old regime offers over 70 exemptions and deductions. The most popular deduction is under section 80C, which allows up to Rs 1.5 lakh deduction from taxable income. Some of the major deductions under the old tax regime include employee contribution to the Employees’ Provident Fund (EPF), exemption on Leave Travel Allowance (LTA), exemption on House Rent Allowance (HRA), employer contribution to NPS under section 80 CCD (2) and health insurance premium deduction under section 80D.
| Annual Income | Tax Rate |
|---|---|
| 2.5 lakh | 0% |
| 2.5 lakh to 5 lakh | 05% |
| 5 to 7 Lakh | 20% |
| 10 to 12.5 Lakh | 30% |
| More than 15 lakhs | 30 |
1 – In the old tax regime, no tax is to be paid on annual income up to Rs 2.5 lakh.
2 – Taxpayers whose annual income is between Rs 2.5 lakh and Rs 5 lakh will have to pay tax at the rate of 5%.
3 – Whereas, if the annual salary is between Rs 5 lakh to Rs 10 lakh, then tax will have to be paid at the rate of 20 percent.
4 – If the annual income is more than Rs 10 lakh then 30 percent tax will be levied.
ITR Filing Last Date 2025: What is the last date for filing ITR, which taxpayers will benefit?
