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The document compares the New Tax Regime (NTR) and Old Tax Regime (OTR) in India, highlighting the differences in tax rates, surcharges, and exemptions. The NTR features improved tax rates and a default option for employees, while the OTR remains unchanged with various exemptions and deductions. Key changes in the NTR include a tax rebate for incomes up to ₹12 lakh and a standard deduction of ₹75,000.

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Rishi Sahu
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8 views1 page

P - Tax Snippet - P

The document compares the New Tax Regime (NTR) and Old Tax Regime (OTR) in India, highlighting the differences in tax rates, surcharges, and exemptions. The NTR features improved tax rates and a default option for employees, while the OTR remains unchanged with various exemptions and deductions. Key changes in the NTR include a tax rebate for incomes up to ₹12 lakh and a standard deduction of ₹75,000.

Uploaded by

Rishi Sahu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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CS&S PAYROLL, ACCENTURE INDIA

New Tax Regime vs Old Tax Regime TAX SNIPPET


NEW TAX REGIME (NTR) OLD TAX REGIME (OTR)
A. BASE TAX RATES (TAX RATES IMPROVED FOR NTR & NO CHANGES FOR OTR)
Upto ₹4 Lakh Nil
₹4 to ₹8 Lakh 5% on taxable income exceeds ₹4 Lakh
Upto ₹2.5 Lakh Nil
₹8 to ₹12 Lakh ₹20,000 + 10% of taxable income exceeds ₹8 Lakh
₹2.5 to ₹5.0 Lakh 5% of taxable income exceeds ₹2.5 Lakh
₹12 to ₹16 Lakh ₹60,000 + 15% of taxable income exceeds ₹12 Lakh
₹5.0 to ₹10.0 Lakh ₹12,500 + 20% of taxable income exceeds ₹5.0 Lakh
₹16 to ₹20 Lakh ₹120,000 + 20% of taxable income exceeds ₹16 Lakh

₹20 to ₹24 Lakh ₹200,000 + 25% of taxable income exceeds ₹20 Lakh Above ₹10.0 Lakh ₹1,12,500 + 30% of taxable income exceeds ₹10.0 Lakh

Above ₹24 Lakh ₹300,000 + 30% of taxable income exceeds ₹24 Lakh
B. SURCHARGE ON BASE TAX (RATES IMPROVED FOR NTR AND NO CHANGES FOR OTR)
Up to ₹50 Lakh Nil Up to ₹50 Lakh Nil
₹50 to ₹100 Lakh 10% of entire Base Tax ₹50 to ₹100 Lakh 10% of entire Base Tax
₹100 to ₹200 Lakh 15% of entire Base Tax ₹100 to ₹200 Lakh 15% of entire Base Tax
Above ₹200 Lakh 25% of entire Base Tax ₹200 to ₹500 Lakh 25% of entire Base Tax
Above ₹500 Lakh 37% of entire Base Tax
C. EDUCATION CESS (NO CHANGE FOR BOTH NTR AND OTR)
4% of Base Tax & Surcharge
HIGHLIGHTS OF FINANCE BILL 2025 (FY 2025-26) EXEMPTIONS & DEDUCTIONS
Type NTR OTR
• Default Regime is New Tax Regime. If employees want to go with Old Tax
Standard Deduction Yes Yes
regime, they have to opt it on Payroll tool.
Professional Tax No Yes
• No changes in Old tax regime
House Rent Allowance Exemption No Yes
• Individual can declare up to two properties as self-occupied, but the total
exemption on interest on housing loan remains ₹2 lakh only LTA Exemption No Yes

• Increased TCS Limit: Threshold raised from INR 7 lakh to INR 10 lakh. Housing Loan Interest No Yes

The changes proposed for New Tax Regime are: Chapter VIA (80C, 80D, 80E, 80G etc.) No Yes

• For revised Tax Rates - refer the above table NPS Employee Contribution (Tier 1) No Yes

• The tax rebate under Section 87A is available for taxable incomes up to ₹12 Pluxee Meal Card No Yes
lakh. Conveyance Exemption for disabled Yes Yes
• The standard deduction remains ₹75,000
Employer Contribution to NPS (max 7.5 Lakh incl PF) Yes Yes

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