ITR 2025: Old vs New Regime — Which Saves You More?
The July 31 ITR deadline is approaching. Choosing between the old and new tax regime can save or cost you thousands. Here is how to figure out which one works better for your income and expenses.
Skipping the wrong tax regime costs more than 6 months of your grocery bill.
Your tax liability can drop this much by picking the right regime
Key Takeaways
List all your eligible deductions (80C, 80D, HRA, home loan interest) — if they exceed ₹3.75 lakh, the old regime likely saves you more.
Use the income tax department's free tax calculator at incometax.gov.in to compare your exact liability under both regimes before filing.
File before July 31 to avoid a late fee of up to ₹5,000 under Section 234F — do not wait for your employer's Form 16.
The July 31 ITR deadline is approaching. Choosing between the old and new tax regime can save or cost you thousands. Here is how to figure out which one works better for your income and expenses.
Here's what happened: ITR filing for FY 2025-26 (AY 2026-27) is open — the deadline for salaried individuals is July 31, 2025.. The new tax regime is now the default; taxpayers must actively opt for the old regime while filing.. Both regimes have different slab rates and deduction rules, meaning your tax liability can vary by thousands of rupees..
What you should do: List all your eligible deductions (80C, 80D, HRA, home loan interest) — if they exceed ₹3.75 lakh, the old regime likely saves you more.. Use the income tax department's free tax calculator at incometax.gov.in to compare your exact liability under both regimes before filing.. File before July 31 to avoid a late fee of up to ₹5,000 under Section 234F — do not wait for your employer's Form 16..
If your annual salary is under ₹7.75 lakh and you have no major deductions, the new regime with its standard deduction gives you zero tax liability — no paperwork needed.
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- [1]“Filing income-tax returns? Here's how to calculate your ITR dues under new tax regime and old tax regime” mint - money · 27 Jul 2026
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