Old vs new regime for salaried employees: tell the employer, choose in the ITR, Sec 202 (old Sec 115BAC)

Tax planning

Old vs new regime for salaried employees: tell the employer, choose in the ITR, Sec 202 (old Sec 115BAC)

What this means, checked by a CA

Every year you can choose the new regime (lower rates, few deductions) or the old regime (higher rates, HRA, 80C and others). We compute your tax both ways, tell you what to tell HR for TDS, and file your return under the cheaper one.

₹999

a year, + 18% GST

  • Same day after salary and deduction details
  • Due: Tell the employer at the start of the tax year (for TDS); final choice in the return filed by the due date under Sec 263(1) (Sec 139(1) for FY 2025-26)

How we do it: IDFD

Every case runs through the same four steps: Information, Discussion, Forms, Deliverables. You see each one ticked as it happens.

InformationWhat we need from you · 7 items
  1. Salary break-up or CTC

    Base for both computations

  2. Rent paid and cityOptional

    HRA only in old regime

  3. Home loan interest certificateOptional

    Self-occupied interest only in old regime

  4. 80C, 80D and other investmentsOptional

    Old regime deductions

  5. Employer NPS contributionOptional

    Allowed in both regimes

  6. Other income and capital gains

    Rebate and slab effect

  7. Any business or professional income

    Decides the switch rule

DiscussionWhat we discuss · 5 items
  1. Any business or freelance income?

    Then the once-only rule applies

  2. Which deductions will you really make?

    Old regime only pays if claims are large

  3. Is income near ₹12 lakh?

    Rebate and marginal relief swing the answer

  4. What did you tell HR this year?

    Mismatch means refund or extra tax at filing

  5. Large special-rate gains this year?

    Rebate does not cover them

FormsForms we file · 5 items
  1. Compute tax under both regimes for the year

    New: salary minus ₹75,000 at Sec 202(1) slabs, rebate and marginal relief; Old: salary minus ₹50,000, HRA, LTA, home loan interest, Chapter VIII deductions at old slabs; add 4% cess; compare

    Where: Our working sheet. Due: Start of the tax year and again before filing

  2. Tell the employer which regime to use for TDS

    Where: Employer payroll or HRMS portal. Due: When the employer asks, usually April

  3. If old regime, submit Form 124 with claims

    Where: Employer payroll or HRMS portal. Due: Before the proof cut-off (SAL-DEC-01)

  4. Exercise the final choice in the ITR (option to opt out of the new regime)

    Where: https://www.incometax.gov.in. Due: With the return by the due date under Sec 263(1) (Sec 139(1) for FY 2025-26)

  5. Claim refund of excess TDS or pay balance tax

    Where: https://www.incometax.gov.in. Due: With the return

DeliverablesWhat you get · 2 items
  1. Two-regime comparison note

    When: Same day

  2. ITR filed under the chosen regime

    When: By the due date

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+ 18% GST

Book Old vs new regime for salaried employees: tell the employer, choose in the ITR, Sec 202 (old Sec 115BAC)