Old Income Tax Regime Vs New Regime: The income tax department has extended the last date for filing income tax returns (ITR) for FY 2024-25 till September 15, 2025, giving taxpayers an extra 45 days beyond
the earlier July 31 deadline.
The Central Board of Direct Taxes (CBDT) said the move comes “due to significant changes introduced in the notified ITRs and considering the time required for system readiness and rollout of ITR utilities for Assessment Year (AY) 2025-26”.
New Tax Regime Remains Default
For FY 2024-25 filings, the new tax regime will be the default option. Salaried individuals can still opt for the old regime at the time of filing. However, a belated ITR — filed after the due date — can only be submitted under the new regime.
| Income (₹) | Tax Rate (%) |
|---|---|
| 0-3,00,000 | 0 |
| 3,00,001-7,00,000 | 5 |
| 7,00,001-10,00,000 | 10 |
| 10,00,001-12,00,000 | 15 |
| 12,00,001-15,00,000 | 20 |
| Above 15,00,000 | 30 |
Key benefits:
Standard deduction: Rs 75,000 for salaried and pensioners.
Section 87A rebate: For residents with net taxable income up to Rs 7 lakh, rebate of up to Rs 20,000.
NPS deduction: Salaried employees can claim up to 14% of basic salary under Section 80CCD(2).
The government’s recent announcement of “zero tax on incomes up to Rs 12 lakh” applies only to FY 2025-26 (income from April 1, 2025 to March 31, 2026) and does not impact the current filing year.
Old Tax Regime Slabs for FY 2024-25
The old tax regime is the income tax system that offers a wide range of exemptions and deductions, allowing taxpayers to reduce their taxable income by claiming benefits such as Section 80C (up to Rs 1.5 lakh) for investments in PPF, ELSS, LIC, etc; house rent allowance (HRA); leave travel allowance (LTA); interest on home loan (Section 24); health insurance premium (Section 80D); education loan interest (Section 80E); and standard deduction (Rs 50,000 for salaried individuals).
Below 60 years:
| Income (₹) | Tax Rate (%) |
|---|---|
| 0-2,50,000 | 0 |
| 2,50,001-5,00,000 | 5 |
| 5,00,001-10,00,000 | 20 |
| Above 10,00,000 | 30 |
60 to below 80 years:
| Income (₹) | Tax Rate (%) |
|---|---|
| 0-3,00,000 | 0 |
| 3,00,001-5,00,000 | 5 |
| 5,00,001-10,00,000 | 20 |
| Above 10,00,000 | 30 |
80 years and above:
| Income (₹) | Tax Rate (%) |
|---|---|
| 0-5,00,000 | 0 |
| 5,00,001-10,00,000 | 20 |
| Above 10,00,000 | 30 |
Which Tax Regime Should You Choose?
The right regime for you depends on how much you earn, how much you invest or spend on eligible deductions, and your preference for simplicity vs savings.
As a thumb rule, choose the new regime if you have fewer deductions and want simplicity, he added.
Taxpayers are advised to use the income tax department’s calculator or consult a tax advisor to make an informed choice before filing your ITR for AY 2025-26.
