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    Comprehensive Guide to Income Tax Regimes in India: Old, New, and Proposed (2025-26)

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    Income tax 2025

    Optimize Your Tax Savings with Updated Slabs, Deductions, and Calculations

    Introduction

    Understanding India’s income tax regimes is critical for maximizing savings. With the 2025-26 budget introducing a proposed regime, taxpayers now have three options: the Old RegimeNew Regime (2023-24), and Proposed Regime (2025-26). This article compares all three, calculates tax liability for a ₹32.36 lakh salary, and identifies the most beneficial option.


    1. Old Tax Regime (FY 2023-24)

    Key Features:

    • Deductions/Exemptions: HRA, LTA, Section 80C (₹1.5L), 80D (₹50k), home loan interest (₹2L), and standard deduction (₹50k).
    • Tax Slabs:
      • Up to ₹2.5L: 0%
      • ₹2.5–5L: 5%
      • ₹5–10L: 20%
      • Above ₹10L: 30%

    Calculation for ₹32.36L Salary:

    ComponentDeduction (₹)
    Gross Salary32,36,800
    Standard Deduction50,000
    Section 80C1,50,000
    Section 80D (Health)50,000
    Section 24(b) (Home Loan)2,00,000
    NPS (80CCD(1B))50,000
    Professional Tax2,500
    Taxable Income27,34,300

    Tax Liability:

    • Up to ₹2.5L: ₹0
    • ₹2.5–5L: ₹12,500
    • ₹5–10L: ₹1,00,000
    • Above ₹10L: ₹5,20,290 (30% of ₹17.34L)
    • Total Tax: ₹6,32,790 + 4% cess (₹25,311) = ₹6,58,100

    2. New Tax Regime (FY 2023-24)

    Key Features:

    • Deductions: Only ₹50k standard deduction.
    • Tax Slabs:
      • Up to ₹3L: 0%
      • ₹3–6L: 5%
      • ₹6–9L: 10%
      • ₹9–12L: 15%
      • ₹12–15L: 20%
      • Above ₹15L: 30%

    Calculation for ₹32.36L Salary:

    ComponentDeduction (₹)
    Gross Salary32,36,800
    Standard Deduction50,000
    Taxable Income31,86,800

    Tax Liability:

    • Up to ₹3L: ₹0
    • ₹3–6L: ₹15,000
    • ₹6–9L: ₹30,000
    • ₹9–12L: ₹45,000
    • ₹12–15L: ₹60,000
    • Above ₹15L: ₹5,06,040 (30% of ₹16.86L)
    • Total Tax: ₹6,56,040 + 4% cess (₹26,242) = ₹6,82,282

    3. Proposed Tax Regime (2025-26)

    Key Changes:

    • Standard Deduction: Increased to ₹75,000.
    • Tax Slabs:
      • Up to ₹4L: 0%
      • ₹4–8L: 5%
      • ₹8–12L: 10%
      • ₹12–16L: 15%
      • ₹16–20L: 20%
      • ₹20–24L: 25%
      • Above ₹24L: 30%
    See also  कुंभ मेले में पितृ दोष निवारण: आध्यात्मिक उपाय और रहस्यमयी महत्व

    Calculation for ₹32.36L Salary:

    ComponentDeduction (₹)
    Gross Salary32,36,800
    Standard Deduction75,000
    Taxable Income31,61,800

    Tax Liability:

    • Up to ₹4L: ₹0
    • ₹4–8L: ₹20,000
    • ₹8–12L: ₹40,000
    • ₹12–16L: ₹60,000
    • ₹16–20L: ₹80,000
    • ₹20–24L: ₹1,00,000
    • Above ₹24L: ₹2,28,540 (30% of ₹7.61L)
    • Total Tax: ₹5,28,540 + 4% cess (₹21,142) = ₹5,49,682

    Comparison of Tax Liability

    RegimeTax Payable (₹)Savings vs. Old Regime
    Old (2023-24)6,58,100
    New (2023-24)6,82,282-₹24,182
    Proposed (2025-26)5,49,682₹1,08,418

    Key Takeaways

    1. Old Regime (2023-24): Best if you can maximize deductions (e.g., home loan, investments).
    2. New Regime (2023-24): Suitable for those with minimal deductions.
    3. Proposed Regime (2025-26): Most beneficial due to revised slabs and higher standard deduction, saving ₹1.08L vs. the old regime.

    FAQs

    Q: Can I claim deductions in the proposed 2025-26 regime?
    A: No, only the ₹75,000 standard deduction is allowed.

    Q: Which regime should I choose?
    A: If the proposed regime is implemented, it offers the lowest liability. For FY 2023-24, the old regime is better for high earners with deductions.

    Q: Are HRA/LTA available in the new regime?
    A: No. The new and proposed regimes exclude most exemptions.


    Conclusion

    The proposed 2025-26 regime simplifies taxes and offers significant savings for ₹32.36L earners. However, always evaluate deductions under the old regime to optimize savings. Consult a tax advisor for personalized planning.

    अचार्य अभय शर्मा एक अनुभवी वेदांताचार्य और योगी हैं, जिन्होंने 25 वर्षों से अधिक समय तक भारतीय आध्यात्मिकता का गहन अध्ययन और अभ्यास किया है। वेद, उपनिषद, और भगवद्गीता के विद्वान होने के साथ-साथ, अचार्य जी ने योग और ध्यान के माध्यम से आत्म-साक्षात्कार की राह दिखाने का कार्य किया है। उनके लेखन में भारतीय संस्कृति, योग, और वेदांत के सिद्धांतों की सरल व्याख्या मिलती है, जो साधारण लोगों को भी गहरे आध्यात्मिक अनुभव का मार्ग प्रदान करती है।

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