For salaried taxpayers earning ₹30 lakh annually, the choice between the old and new tax regimes presents a clear advantage for the new regime. According to calculations by ClearTax, the new regime results in a tax liability of ₹4,75,800, while the old regime would require payment of ₹5,84,376, creating a tax saving of ₹1,08,576 under the new regime. This significant difference occurs despite the old regime offering several exemptions and deductions that are unavailable under the new regime. As per Bhaskar English, the new tax regime has been made the default option for Assessment Year 2026-27, meaning taxpayers must actively choose the old regime if they prefer it.
The new tax regime offers ₹75,000 standard deduction, which reduces the taxable income on a ₹30 lakh salary to ₹29.25 lakh. Additional deductions include employer contributions to the National Pension System under Section 80CCD(2), interest on let-out property home loan under Section 24, and exemptions on retirement benefits such as gratuity and leave encashment. For taxpayers with limited deductions, the lower tax rates under the new regime generally translate into a lower overall tax outgo, as reported by ClearTax. According to Bhaskar English, the government has increased the scope of tax exemption in the new system, with no direct tax on income up to ₹4 lakh and a tax rebate of up to ₹60,000 under Section 87A for taxable income up to ₹12 lakh, potentially making the entire tax liability zero.
The old regime continues to offer several exemptions including HRA, LTA, children's education allowance, deductions under Sections 80C, 80D and 80E, home loan benefits and employer contributions to the National Pension System. A taxpayer earning ₹30 lakh annually who claims deductions of ₹4.5 lakh would still pay ₹5.84 lakh in income tax under the old regime. The calculations show that even after claiming substantial exemptions and deductions, the old regime remains less tax-efficient for most salaried taxpayers at this income level. As per Bhaskar English, in the old regime, there is no tax on income up to ₹2.5 lakh and a rebate of ₹12,500 under Section 87A on taxable income up to ₹5 lakh, making it tax-free for certain income brackets.
According to ClearTax, taxpayers would need to claim more than ₹8 lakh in total deductions and exemptions for the old regime to become more beneficial than the new regime. This threshold could apply to individuals with substantial HRA exemptions, home loan interest deductions, higher employer NPS contributions and other eligible tax benefits. For most salaried taxpayers earning ₹30 lakh, however, the lower slab rates under the new regime continue to outweigh the benefits available under the old regime, making it the more tax-efficient option. As per Bhaskar English, the old regime remains beneficial only for taxpayers with substantial deductions, as it offers more exemptions and deductions compared to the new regime.
The last date for filing Income Tax Return (ITR) is July 31, with late fees of ₹1,000 on annual income up to ₹5 lakh and ₹5,000 on income exceeding ₹5 lakh for delayed submissions. The Income Tax Department has made the filing process easier through the e-filing portal, eliminating the need for Chartered Accountants in most cases. According to Bhaskar English, taxpayers can now file ITR themselves from home by visiting incometax.gov.in, logging in with PAN number, selecting the appropriate ITR form based on income source, and choosing the desired tax regime. The process requires careful verification of pre-filled information based on AIS and Form-16, with mandatory e-verification within 30 days through Aadhaar OTP or bank account.
