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ITR Filing Made Easy in 2025: How to Choose Between Old vs New Tax Regime and Calculate Tax Online
Siddhi Jain | May 21, 2025 11:15 PM CST

Filing your Income Tax Return (ITR) is now easier and more flexible than ever. For the financial year 2024-25, the Income Tax Department offers taxpayers a choice between the Old Tax Regime and the New Tax Regime—each with its own set of benefits. If you’re confused about which one is better for you, don’t worry. Here's a simple guide to help you compare both regimes and calculate your tax liability using the official e-filing portal.

✅ Step-by-Step Guide to Calculate Your Tax Online

You don’t need to hire a tax expert to figure out which regime suits you best. The Income Tax Department’s e-filing portal provides an easy calculator. Follow these steps:

  1. Visit the e-filing portal.

  2. Log in using your PAN number and name.

  3. Choose the type of filer:

    • Individual

    • Firm

    • Company

    • Institution

  4. Select your tax regime – Old or New.

  5. Choose your age category:

    • Regular Citizen (below 60)

    • Senior Citizen (60–79)

    • Super Senior Citizen (80+)

  6. Enter your total annual income and any deductions claimed (if using the old regime).

  7. The portal will display:

    • Taxable income

    • Deductions

    • Tax under both regimes

  8. Click ‘View Comparison’ to see which option saves more tax.

This online calculator provides a clear and accurate summary, making it easier to plan your finances and avoid errors during ITR filing.

🔍 New Tax Regime vs Old Tax Regime – What’s the Difference?

Criteria New Tax Regime Old Tax Regime
Income up to ₹12 lakh Zero tax (under new slab) Taxable with applicable deductions
Deductions Limited (No 80C, 80D, HRA, etc.) Extensive (80C, 80D, HRA, LTA, etc.)
Standard Deduction ₹50,000 allowed ₹50,000 allowed
Flexibility Simple slabs, fewer exemptions Multiple exemptions and rebates
Who should opt Those with low investments/deductions Those with high investments/deductions

🔁 Can You Switch Regimes?

Yes! For salaried individuals, you can switch between tax regimes every year. However, for those with income from business/profession, the change can only be done once in a lifetime, unless the business ceases to exist.

💡 Benefits of Filing ITR – Why You Shouldn't Skip It

Even if your income is below the taxable limit, filing your ITR can offer several advantages:

  • Required for loan approvals and visa processing

  • Helps in claiming tax refunds

  • Acts as proof of income

  • Necessary for high-value investments

  • Keeps your financial records clean and transparent

🆕 Tax Regime Highlights for FY 2024-25

  • Zero tax for income up to ₹12 lakh under the new regime

  • Revised slabs introduced in Budget 2024 to benefit middle-class earners

  • Better clarity on deductions and compliance via online tools

  • Standard deduction retained under both regimes

📌 Final Takeaway

If you want maximum tax savings and have invested in eligible schemes, the old tax regime might be the better option. However, if you prefer simplicity with minimal documentation, the new tax regime could save you time and effort.

Use the online calculator on the Income Tax portal to make an informed choice and file your ITR hassle-free.

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