Tag: old vs new tax regime india

📄 What is ITR-1 (Sahaj)?

ITR-1 is for resident individuals (not HUF) having:

• Income from Salary/Pension
• One House Property
• Other Sources (like interest)
• Total income up to ₹50 lakh

❌ Not applicable if:

• You’re a director in a company
• Own foreign assets
• Have capital gains or business income

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🧾 Documents Required

1. Form 16 – from your employer
2. Form 26AS – tax credit summary
3. AIS (Annual Information Statement) – full record of your income
4. Bank statement – for interest income
5. Investment proofs – 80C, 80D, etc.
6. Aadhaar, PAN, and bank account details

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📌 What is Form 26AS?

• It shows TDS (Tax Deducted at Source) details – by employer, banks, etc.
• Verify your tax has been correctly deducted and deposited.

🔽 Where to download:

1. Go to https://incometax.gov.in
2. Login → Go to e-File → Income Tax Returns → View Form 26AS

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📌 What is AIS (Annual Information Statement)?

• AIS shows a consolidated view of all your income – salary, interest, dividends, shares, etc.
• Cross-check your declared income.

🔽 Where to find:

1. Login to https://incometax.gov.in
2. Click AIS on the top menu
3. Download the PDF/JSON for verification

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🧮 How to File ITR-1: Step-by-Step

1. Login to the Income Tax Portal
2. Go to e-File → Income Tax Return
3. Select:
   • Assessment Year: 2025-26
   • ITR Form: ITR-1
   • Filing Type: Original
   • Submission: Online
4. Auto-filled data will appear from:
   • Form 26AS
   • AIS
   • PAN-Aadhaar linked info
5. Verify each section:
   • Personal Info
   • Salary Income
   • Deductions (80C, 80D, etc.)
   • Tax Details (TDS from Form 26AS)
6. Preview and Validate
7. Submit and e-verify (via Aadhaar OTP or Netbanking)

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💰 Example-wise Tax Comparison (Old vs New Regime)

Assumptions:

• Only salary income
• No business or capital gains
• Standard deduction: ₹50,000 (Old Regime only)
• Section 80C: ₹1,50,000
• Section 80D (health insurance): ₹25,000

Gross Salary	Old Regime (after deductions)	Tax (Old Regime)	Tax (New Regime)
₹5,00,000	₹2,75,000	₹0 (Rebate u/s 87A)	₹0 (Rebate u/s 87A)
₹7,00,000	₹5,25,000	₹10,400	₹0 (Rebate u/s 87A)
₹10,00,000	₹7,75,000	₹70,200	₹54,600
₹12,50,000	₹10,25,000	₹1,30,800	₹93,600
₹16,00,000	₹13,75,000	₹2,38,200	₹1,62,000
₹20,00,000	₹17,75,000	₹3,57,000	₹2,34,000
₹25,00,000	₹22,75,000	₹5,35,800	₹3,72,000

🧮 Tax calculated after standard deduction & 80C/80D for Old Regime.

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🆚 Old vs New Tax Regime Slabs (FY 2024-25)

✅ New Regime (Default):

Income Slab	Tax Rate
0 – ₹3,00,000	0%
₹3,00,001 – ₹6,00,000	5%
₹6,00,001 – ₹9,00,000	10%
₹9,00,001 – ₹12,00,000	15%
₹12,00,001 – ₹15,00,000	20%
Above ₹15,00,000	30%

No deductions (80C, 80D, etc.) but standard deduction ₹50,000 is now allowed in new regime from FY 2023-24 onwards.

✅ Old Regime:

Income Slab	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%

You can claim all deductions (80C, 80D, HRA, LTA, home loan interest, etc.)

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📌 Which regime is better?

• Up to ₹7 lakh: New Regime (100% tax rebate)
• ₹7–10 lakh: New regime may be better if you don’t have many deductions
• ₹10–20 lakh: If you claim full 80C + 80D + HRA + home loan, Old Regime may save more
• ₹20 lakh+ with fewer deductions: New Regime usually wins

✅ Use the Income Tax Calculator on the portal to compare.

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🎯 Final Checklist Before Submitting ITR

✔ Cross-check income from Form 16 with AIS & 26AS
✔ Declare all interest income
✔ Choose tax regime carefully
✔ E-verify after filing
✔ Keep ITR-V or acknowledgment safely

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