5-Step Guide to Help Choose Between Old Vs New Tax Regime as per New system of Income Tax by the Budget 2020

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While under the old tax regime the salaried
individuals can continue paying taxes, as they had been doing till now; under
the new regime, they will be liable to pay lower taxes, provided they forego their
deductions and exemptions.

 Budget 2020 has given taxpayers an option to continue
with the existing tax regime or opt for the new proposed tax regime. Employees
today are conflicted as to which regime they should really opt for and why?
While under the old tax regime the salaried individuals can continue paying
taxes, as they had been doing till now; under the new regime, they will be
liable to pay lower taxes, provided they forego their deductions and exemptions.
Difference between the
two tax regimes

 Deductions/Exemptions

Main
exemptions that taxpayers will have to forego if they opt for the new regime
are Standard Deduction of Rs. 50,000 to salaried tax payers, House Rent
Allowance for individuals staying in rented accommodation, Interest on housing
loan for self-occupied property, Leave Travel Allowance twice in block of four
years, the most commonly claimed deduction under section 80C for provident fund
contribution, life insurance premium, school tuition fee for children, ELSS, PPF
etc.

None
of the above can be claimed under the new tax regime. A total of 70 exemptions
have been done away with in the new tax regime.

Steps to opt for your
preferred Tax Regime:

Step 1:
Understand what suits you best

If
your taxable income is below 5 lakhs or above 15 lakhs, then tax rates are same in both; hence
the older regime that allows exemptions is more suited

Step 2:
Check the exemptions

Out
of all the exemptions that have been removed, check how many are applicable for
you and how much money you can save by opting for those. This will help you in
the next step.

Based
on your net taxable income post exemptions/deductions, calculate total income
tax under old as well as new regime.

Step 4:
Go beyond the numbers

Apart
from taxable income, your lifestyle, life stage, short- and long-term
priorities along with financial goals are excellent parameters to decide what
type of tax regime you should opt for. With inflation, rising consumerism and
growing needs, it’s important to start saving early and spend smart. The power
of compounding has a great role to play in achieving your financial goals.

Step 5:
Remember to plan well

It’s
important to note that it is possible to change tax regimes every financial
year, as both will exist simultaneously. First – time taxpayers may decide to
choose the new tax regime as it’s simple to follow and translates to lower tax
liability. However, in the long run, investments have financial benefits and
taxpayers will want to go for the old regime as that will be more beneficial.

The current budget announcement has gone the extra
mile to provide ample freedom of choice to each salaried individual. It’s best
to understand every variable as you go along this checklist before making the
switch. Freedom is yours, use it wisely.



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Calculating income tax often feels like solving a complicated puzzle, doesn’t it? You gather salary slips, deductions, exemptions, and slabs, yet confusion remains. However, things do not have to be this stressful anymore. An Automatic Income Tax Calculator in Excel for Govt & Non-Govt Employees (FY 2025-26) works like a smart assistant that does the heavy lifting for you. In fact, it calculates tax automatically, accurately, and instantly. Moreover, it saves time, reduces errors, and gives you peace of mind. So, whether you are a government employee, a private-sector professional, or even a pensioner, this article will guide you step by step. Additionally, it will help you understand why Auto Calculate Income Tax Preparation Software in Excel is becoming the preferred choice for the general public across India. 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As a result, you can choose the most beneficial option without stress. 4. Who Can Use This Excel Tax Calculator Interestingly, this tool is not limited to one group. Government employees, private employees, PSU staff, teachers, bank employees, and even consultants can use it. Additionally, pensioners and senior citizens can benefit as well. Therefore, it truly serves the general public. 5. Key Features of Automatic Income Tax Calculator Some standout features include: Automatic tax calculation Built-in tax slabs for FY 2025-26 Old vs New regime comparison Support for deductions under Chapter VI-A Simple, user-friendly interface Moreover, these features work together seamlessly. Hence, even beginners can use the calculator confidently. 6. Benefits for Government Employees For government employees, salary structures include DA, HRA, and other allowances. Therefore, tax calculation becomes tricky. However, this Excel calculator automatically adjusts these components. 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Yes, absolutely. The calculator is designed for both government and non-government employees. Does this calculator support FY 2025-26 tax slabs? Yes, it includes updated slabs and rules applicable for FY 2025-26. Can I compare old and new tax regimes using this software? Yes, the calculator automatically compares both regimes and shows tax savings. Is Excel-based tax calculation accurate? Yes, because predefined formulas reduce manual errors significantly. Is my data safe when using this Excel income tax calculator? Yes, since it works offline, your financial data remains fully secure. Download Automatic Income Tax Calculator in Excel for Govt & Non-Govt Employees (FY 2025-26) Key Features of this Excel Utility are:- Firstly, automatic tax calculation: The Excel tool instantly calculates income tax as soon as you enter salary details, thereby eliminating manual effort and confusion. Secondly, updated tax slabs for FY 2025-26: It automatically applies the latest income tax slabs, hence ensuring accuracy and compliance with current rules. Moreover, old vs new tax regime comparison: The calculator compares both regimes side by side, so you can easily choose the most tax-saving option. Additionally, support for Govt & Non-Govt employees: Whether you work in the government sector or the private sector, the calculator adjusts calculations accordingly. Furthermore, built-in deductions and exemptions: It covers major sections like 80C, 80D, 80CCD, HRA, and standard deduction, therefore reducing errors. As a result, real-time auto updates: Whenever you change any value, the tax payable updates instantly, thus saving time. Likewise, user-friendly Excel format: Since most people are familiar with Excel, the software feels simple, clear, and easy to operate. 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Calculating income tax often feels like solving a complicated puzzle, doesn’t it? You gather salary slips, deductions, exemptions, and slabs, yet confusion remains. However, things

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February 11, 2026 No Comments
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