Kolkata: The old tax regime and the new tax regimeare the two choices before the taxpayer today. While the new regime offers some well-publicised benefits
such as higher rebates and lower tax rates, there are some benefits in the old tax regime too. Therefore, before you proceed to file your income tax return, it is important to understand the differences between old and new income tax regime. Though the old regime removes most of the deductions and exemptions, it still carries a few benefits that taxpayers depend on to bring down their taxes. The new regime also allows a few allowances and perquisites. Usually July 31 is the deadline every year to file the ITR for the previous year. It means you have to file tax returns for FY26 by this date. You have to know the differences between the old and new tax regimes, particularly in terms of deductions, exemptions and overall payable tax.
Old vs new tax regime: What has changed in the new regime
Free food voucher
Old Tax Regime
Rs 200 per meal
New Tax Regime
Rs 200 per meal
Children Education Allowance
Old Tax Regime
Rs 3,000 per month per child
(max two kids)
New Tax Regime
NA
House Rent Allowance
Old Tax Regime
Hyderabad, Pune, Ahmedabad, Bengaluru added to list of metro cities which are entitled to 50% HRA.
For verifying HRA claims, employees must disclose any relationship with the landlord. Employers need to collect copy of the rent agreement
New Tax Regime
NA
Hostel allowance for kids
Old Tax Regime
Rs 9,000 per month per child
(Max 2 kids)
New Tax Regime
NA
Increase in Interest-free/Concessional loan amount
Old Tax Regime
Now Rs 2 lakh
New Tax Regime
NA
Employer Owned Car
Old Tax Regime
Rs 8,000 per month (of which Rs 3,000 for driver)
Also applicable on an EV
New Tax Regime
Rs 8,000 per month (of which Rs 3,000 for driver)
Also applicable on an EV
Leave Travel Concession
Old Tax Regime
Economy class airfare restriction abolished. Exemption based on the airfare applicable to the class of travel entitled.
If there is no recognised public transport system, the existing limit equivalent to the AC Class I rail fare is proposed to be revised to INR 30 per km for the shortest route.
New Tax Regime
NA
Value of any gift and voucher to employee
Old Tax Regime
Rs 15,000
New Tax Regime
Rs 15,000
