Two Tax Regime: New Regime u/s 115BAC (Default) and Old Regime

New Regime

✔ Basic Exemption Limit is 3 Lakh

Tax Rebates u/s 87A is Rs.25,000/- subject to total income of Rs.7 Lakh

Savings Bank Interest is fully Taxable and not exempt upto Rs. 10,000

New Regime is always beneficial if you have Deduction u/s 80C only

✔ For Income from Salary, Standard Deduction of Rs.50,000 available in New Regime also

Old Regime.

Basic Exemption Limit is 2.5 Lakh (3 Lakh for senior citizens and 5 lakh for super senior citizens)

Tax Rebates u/s 87A is Rs.12,500/- subject to total income of Rs.5 Lakh

Savings Bank Interest is exempt upto Rs. 10,000

Old Regime is always beneficial if you have Deduction u/s 80C/80D and 24 (Home Loan Interest)

Late Fee

Late Fee is payable if ITR Filed after due date u/s 139(1)

No Late Fee if Gross Total Income(GTI) upto ₹2,50,000

• Late Fee is ₹1,000 if GTI above ₹2,50,000

✔ Losses if any cannot be carried forward if ITR filed after due date u/s 139(1)

• Late Fee is ₹5,000 if Total Income is above ₹5,00,000.

• Selection of Regime.

ITR 1 and ITR 2 filers can select any regime while filling ITR u/s 139(1)

+ITR 3 and ITR 4 filers have to file Form 10IEA on or before the due date u/s 139(1) to opt for old regime or to opt out from old regime (Option once excercise can not be withdrawn for same financial year)

(Once he had opted for old regime then after he can opt out from old regime only once and after that he is not eligible to opt for old regime in future unless he will become eligible to file ITR 1 or ITR 2)

Whatever you have opted till AY 23-24 have no impact on the regime selection option from AY 24-25 (AY 24-25 is the first year for filing form 101EA for opting for the old tax regime for ITR 3 or ITR 4)

Conclusion

For FY 2023-24, Majority of Individuals were filing ITR in the New Tax Regime because New Tax Regime is always beneficial if tax payers have No Deductions or Deductions u/s 80C only.