New Income Tax Regime Vs Old Income Tax Regime 2024-25: Selecting the most tax-efficient income tax regime, either the old or new, can be a challenging decision for many salaried taxpayers. April is the first month of the new financial year, and employers would have asked salaried individuals to share their choice of preferred income tax regime for the purpose of TDS. One must remember that the new income tax regime is now the default tax regime and in case you don’t tell your employer your chosen tax regime, your TDS will be deducted as per the new tax regime. If at the time of filing your tax return you want to switch regimes, you can, provided the ITR is filed within the due date provided by the Income Tax Department.

What income tax regime will work for you? Do you want to understand the old and the new income tax regime better? Then register and join TOI Masterclass on New Tax Regime vs Old Tax Regime on April 26, 2024 at 3:00 PM. Click here to registerNew Vs Old Tax Regime: Understanding the break-even

of deductions that can be claimed from gross total income to reduce taxable income. If taxpayers are aware of their gross total income and the minimum deductions required to pay the same tax under both regimes, the decision becomes more straightforward.

When the claimable deductions exceed this minimum amount, the old tax regime proves more beneficial, while the new tax regime saves more tax if the deductions fall below this threshold, explains an ET analysis.

It is crucial to note that the minimum deductions necessary to equalize the tax outgo in both regimes vary based on the income level. The table provided below as part of an ET analysis illustrates the minimum deduction amounts that individuals at different gross taxable income levels must claim to achieve equal income tax payable, also known as their break-even level of deductions