Old vs New Tax Regime: Which One Saves You More for FY 2024-25?

Chaitra Seetharam | Last updated: 22 July 2025

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For the financial year 2024-25, the new tax regime is the default option, but taxpayers can opt out for the old regime if it's more beneficial. The old regime allows for various deductions like HRA and Section 80C, while the new regime offers lower tax rates but significantly restricts these deductions. Choosing the right regime depends on your individual circumstances, particularly your investment and deduction claims.

The Finance Act 2023 amended Section 115BAC, making the new tax regime the default option from AY 2024-25 (FY 2023-24 onwards) for: Individuals HUFs (Hindu Undivided Families) AOPs (Association of Persons, excluding co-operative societies) BOIs (Body of Individuals) Artificial Jurid

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About the Author

Chaitra Seetharam

Finance Professional

I write on Income Tax, TDS, ITR filing, banking rules, investment schemes, and financial law updates in India. My articles simplify complex tax provisions, compliance requirements, and policy changes to help taxpayers, professionals, senior citizens, and businesses stay informed and financially aware.

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Old vs New Tax Regime: Which One Saves You More for FY 2024-25?

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