Understanding the New Tax Regime vs. Old Tax Regime for FY 2024-25

Key Highlights at a Glance

• The new tax regime now offers up to ₹12.75 lakh tax-free income for salaried individuals.
• The old regime allows multiple deductions like 80C, 80D, HRA, etc.
• The new regime is now the default option unless you choose otherwise.
• If switching back to the old regime (for those with business/profession income), Form 10-IEA must be submitted.
• You can block your tax filing slot with udChalo for just ₹99 and file later with expert help.

The 2025 tax season brings a key question: Which tax regime should you choose—Old or New? With changing slabs, limited deductions, and government encouragement towards the new regime, making the right choice is essential, especially for defence families looking to save more.

Let’s break it down in simple terms.

What Is a Tax Regime?

A tax regime refers to the set of rules and slab rates that determine how much income tax you pay in a financial year. India now offers two:

• Old Tax Regime: Offers many exemptions and deductions.
• New Tax Regime: Offers lower tax rates but fewer deductions.

New Tax Regime 2025: Key Features

Key Benefits:

• Standard deduction of ₹50,000 for salaried individuals.
• Effective tax-free income up to ₹12.75 lakh (with rebate under 87A and standard deduction).
• Simplified tax structure.
• Limited deductions allowed: NPS (employer contribution), EPF, standard deduction.

Old Tax Regime: What It Offers

Good For: Individuals with housing loans, high investments, or multiple deductions.

New vs. Old Tax Regime: A Quick Comparison

How to Choose the Right Regime

1. Calculate your total income.
2. List your deductions (HRA, 80C, 80D, etc.).
3. Use a tax calculator to compare both regimes.
4. If you are a salaried individual, you can switch each year.
5. If you earn from business or profession, submit Form 10-IEA to opt for the new regime and re-submit if switching again.

What is Form 10-IEA?

Form 10-IEA is a declaration filed with the income tax department if you want to opt into or out of the new tax regime for business/profession income. It must be filed before the ITR due date.

udChalo Makes Tax Filing Easy & Safe

Serving defence personnel with care, udChalo now offers tax filing services starting at just ₹99.
You can block your ITR filing slot now and file later—stress-free and secure.

Plus, you get expert help in:

• Choosing the right regime
• Form 10-IEA submission
• Error-free ITR filing

Why Tax Regime Selection Matters for Defence Personnel

• Many defence families live in government accommodation, so no HRA claim.
• The new regime could benefit those without large investments.
• If you have invested in ELSS, LIC, or have health policies, the old regime might save more.

Always compare before filing.

Final Thoughts

Choosing between the new tax regime and the old one is no longer just about slab rates. It’s about your income structure, deductions, and financial goals. Defence families, especially those with fewer investments or housing benefits, may find the new regime useful.

But don’t decide without comparing.

Use trusted platforms like udChalo to calculate, compare, and file your ITR securely and affordably.

Ready to file?

Block your ITR filing for just ₹99 on udChalo and stay stress-free this tax season.

FAQs

1. Which tax regime is better for salaried defence personnel?
   It depends on your deductions. If you claim many deductions, the old regime may be better.
2. Can I switch regimes every year?
   Yes, if you are salaried. Business/profession income earners must submit Form 10-IEA.
3. Is the new tax regime mandatory?
   It’s the default. You can still choose the old regime if it benefits you.
4. What is the standard deduction?
   A flat ₹50,000 reduction allowed for salaried individuals in both regimes.
5. Can I claim 80C in the new regime?
   No, 80C is only allowed in the old regime.
6. How do I file Form 10-IEA?
   Through the income tax portal before filing your ITR. udChalo can help you file it correctly.
7. How is udChalo’s ₹99 ITR price lock useful?
   It lets you block your tax filing at today’s price and file later, even closer to the deadline.
8. Can I file taxes myself using udChalo?
   Yes. You get guided support, or you can let their experts handle it.
9. Is tax filing via udChalo safe?
   Absolutely. Your data is encrypted and secure with expert-reviewed filing.
10. Is there a tax calculator available on udChalo?
    Yes, you can compare the new and old regimes using the tax calculator on udChalo.