Old vs new tax regime: Consider income and deductions before you pick

If you declared one regime to your employer for TDS but later find the other more beneficial, you can still switch when filing your income-tax return
Himali Patel Mumbai
Listen to This Article
A study by 1 Finance of 1,865 information technology (IT) professionals found that 68 per cent could have saved an average of ₹49,094 in taxes in the financial year (FY) 2024–25. Of those surveyed, 33 per cent selected the wrong tax regime. Among them, 86 per cent should have switched from the old to the new regime, while the rest would have benefited by shifting in the opposite direction.
Understand the differences
The old regime provides an exemption limit of ₹2.5 lakh, with a maximum slab rate of 30 per cent on income above ₹10 lakh. It features four tax

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Time of India

an hour ago

• Time of India

ITR filing due date extended but deadline to pay final tax without penalty is July 31 or Sept 15 now for FY 2024-25?

Will penal interest be applicable if self-assessment tax is deposited after July 31, 2025? Academy Empower your mind, elevate your skills Penal interest will be applicable on advance tax What is penal interest on delay in payment of self-assessment tax? The income tax department has extended the due date to file an income tax return for FY 2024-25 (AY 2025-26) from July 31, 2025, to September 15, 2025. The last date to file the ITR has been extended beyond July 31 for taxpayers whose accounts are not required to be audited, such as salaried taxpayers, NRIs, and July 31 is also the due date for taxpayers to deposit their self-assessment tax . It is the amount of tax that a taxpayer is liable to pay after deducting the TDS, TCS and advance tax payments. If a belated ITR is filed (i.e., the income tax return is filed after the due date) and the self-assessment tax is also paid after the due date, then the taxpayer has to pay penal interest under Section 234A on the self-assessment tax deadline to file ITR has been extended, but does this mean taxpayers can deposit their self-assessment tax without penalty till September 15, 2025, i.e., has the due date for payment of self-assessment tax for FY 2024-2025 (AY 2025-26) also been extended? ET Wealth online asks experts for their opinions:Also Read: What are the changes in the Form 16 this year? Tarun Garg, Director, Deloitte India, says, "Interest under Section 234A of the Income Tax Act, 1961 is applicable when the ITR is filed after the due date as specified under Section 139(1), and the self-assessment tax remains unpaid as of that due date. With the ITR filing due date for FY 2024-25 (AY 2025-26) being extended to 15 September 2025, this revised date will be considered as the "due date" for the purposes of Section 234A. Accordingly, interest under Section 234A of the Act will not be levied provided the due amount of tax is paid on or before the extended timeline of 15 September 2025. This position is supported by the Supreme Court's ruling in CIT vs. Prannoy Roy [309 ITR 231 (2009)], and CBDT Circular No. 2/2015, which accepted the Court's decision."Also Read: Income tax slabs for ITR filing FY 2024-25 are different Tarun Kumar Madaan, Practising Chartered Accountant, says, "In the present case, since the due date under Section 139(1) has been extended to 15th September 2025, interest under Section 234A should not be applicable if the ITR is filed, and the entire self-assessment tax is paid, on or before this extended date. In several past instances where the due date for filing the return was extended, the CBDT had expressly clarified that such extension would not apply for the purposes of Section 234A, and interest would still be computed from the original due date. However, Circular No. 6/2025 contains no such caveat. Given that the extension has been granted due to reasons beyond the taxpayer's control (such as non-availability of return filing utilities), it is reasonable to interpret that no interest under Section 234A should be charged if the return is filed by 15th September 2025."Shubham Jain, Associate Director, Nangia Andersen India, says, "Interest under section 234A is chargeable at the rate of 1% on unpaid tax if the ITR is filed beyond the due date specified in Section 139(1). The CBDT circular announcing the due date extension specifies that the due date itself, as provided under Section 139(1), has been extended from July 31, 2025, to September 15, 2025. Thus, interest under Section 234A should technically not be levied in cases where the ITR is filed after 31 July but before 15 September. Further, considering that the ITR due date extension has been announced much before the release of the ITR utility, one would hope that the date extension would be natively built into the ITR utility, as otherwise the ITR utility would automatically levy the interest under Section 234A if the return is filed after 31 July 2025."It is important to note that taxpayers will have to pay penal interest for the non-payment/shortfall of advance tax payments for FY 2024-25 (AY 2025-26), as is the norm. Penal interest under Section 234B is applicable if the taxpayer has not paid advance tax in full by the due dates. Penal interest under Section 234C is levied if the taxpayer has paid advance tax less than the prescribed though the due date is extended, the penal interest on non-payment/shortfall of advance tax will says, "Although the ITR filing deadline has been extended, interest under Sections 234B and 234C of the Act will continue to be applicable."Madaan says, "The penal interest under Section 234B and Section 234C is independent of the tax return filing due date and continues to apply where advance tax provisions are not complied with. The extension of the tax return filing due date does not affect the computation or applicability of interest under Section 234B and Section 234C."Penal interest at 1% per month is applicable for both Section 234B and self-assessment tax is paid after the extended due date for ITR filing, i.e., September 15, 2025, then penal interest at 1% per month will be applicable.

Time of India

6 hours ago

• Time of India

Rising prices for shrinking houses: How lavish lifestyle comes at the cost of higher loading factor; check this before you buy

Imagine an Olympic-size swimming pool, a swanky multistorey clubhouse, badminton and tennis courts, and landscaped gardens. A few years ago, you would have been picturing a luxury retreat nestled somewhere in the hills. But what was once a dreamy escape is now part of everyday life for many. An oasis of calm, comfort and luxury awaits Indian homeowners within plush housing complexes mushrooming amid the hustle-bustle of its big cities. However, this elevated living comes with a sharp trade-off: homebuyers are paying through the nose for open spaces, while making do with less living space. Lavish living, cramped spaces When you buy an apartment, you do not just pay for the liveable area within its four walls. A portion of the cost also goes toward shared spaces in the housing society—this is known as the ' loading factor '. It refers to the proportionate share of ancillary common areas and amenities added to the carpet area (usable inner home area) and included in the price charged to the buyer. It essentially refers to the difference between the super built-up and the carpet area of an apartment. To put it simply, the carpet area refers to the floor space where you can actually lay a carpet. The built-up area includes the carpet area plus the space taken up by the walls and ducts. The super built-up area includes the built-up area along with a proportionate share of common spaces such as the staircases, lift shafts, entrance lobbies, corridors, parking areas, and amenities. 'In India, property prices are usually calculated based on the super built-up area. While developers market homes based on this figure, the real value lies in the carpet area,' points out Akhil Rathi, Head– Financial Advisory at 1 Finance. A recent report by ANAROCK throws light on the steep premium homebuyers are paying for their lap of luxury. According to the real estate consultancy, the average loading factor in apartments across India's top seven markets has climbed sharply from 31% in 2019 to 40% in January-March 2025. This means that of the total space you are paying for, only 60% is the home interior, while 40% of the cost is for the common areas and amenities. In the past, a loading of 25-30% was the norm. Loading factor has surged MMR faces highest loading; Bengaluru sees steepest rise Homebuyers' preferences for a certain lifestyle is contributing to this trend. Nowadays, homebuyers covet expansive lounge areas with cafes, state-of-the-art gymnasiums, rooftop decks and multi-purpose utility areas. Experts point out that the loading factor is directly proportional to the amenities in a project. The cost of additional amenities provided by the developer is usually passed on to customers in the form of loading charges. Invariably, loading will be higher for larger projects, where more space is allotted to amenities and common areas. Live Events Prashant Thakur, Regional Director & Head–Research & Advisory, ANAROCK Group, observes, 'Today, higher amenity loading has become the norm across most projects partly because homebuyers are no longer satisfied with basic lifestyle amenities— they expect fitness centres, clubhouses, park-like gardens, and grand lobbies.' Additionally, regulatory and safety requirements, such as fire escapes, utility zones, and larger elevators, further increase the common areas, thereby adding to the loading, points out Rahul Purohit, Cofounder & Chief Business Officer, Square Yards. But the flip side is that homebuyers end up giving up on actual living spaces. Buyers often end up paying a premium for homes with less actual living area because the pricing is based on the super built-up area, not the space the residents actively use, Rathi explains. 'While such facilities may enhance the community living experience, they also reduce the size of individual units, resulting in tighter bedrooms or smaller living spaces,' he says. Jayesh Rathod, Co-Founder and Director of The Guardian Real Estate Advisory, asserts, 'Homebuyers are increasingly paying a significant portion of their total home cost for shared spaces rather than actual liveable space.' 'While high loading doesn't automatically lower resale prices, it may narrow the pool of interested buyers due to perceived space inefficiency", says Akhil Rathi, Head – Financial Advisory, 1 Finance. According to the ANAROCK report, Mumbai Metropolitan Region continues to see the highest loading among the top seven cities, with 43% in January-March 2025. Bengaluru has seen the highest percentile jump in average loading over the last seven years–from 30% in 2019 to 41% in January-March 2025. The ANAROCK report suggests this dovetails with the increasingly higher saturation of modern amenities that developers now include to cater to the higher lifestyle ask in the IT hub. Chennai, on the other hand, has the least average loading rise in January-March 2025 with 36%, aligning with a city-specific demand profile where homebuyers prefer to pay more for usable space within their homes rather than for common areas. In 2019, Chennai's average loading percentage was 30%. Same budget, different loading factors Knowing the loading factor helps assess value. Balancing act For homebuyers, the loading factor of an apartment is critical when evaluating projects with extensive amenities and open spaces. It is indicative of the functionality of the house. It also reveals the real value behind the price tag. Loading ratio tells you how much space you get for the money you spend. If the ratio is higher, it implies that you are paying a higher price per square foot than the advertised cost. Homebuyers can effectively compare relative value proposition of different projects. For example, if two apartments—Unit A and Unit B—each have a super built-up area of 1,000 sq ft and are priced atRs.75 lakh, but their loading factors are 25% and 33% respectively, it means Unit A offers more liveable space at 800 sq ft compared to Unit B's 750 sq ft. This trade-off between amenities and functional space begs careful consideration. 'This trade-off, paying more for less private space, has become a growing concern among urban homebuyers, especially in cities where affordability is already a challenge,' says Rathi. Individual preferences may differ, so buyers should evaluate offers accordingly. 'Higher amenity loading has become the norm across most projects partly because homebuyers are no longer satisfied with basic lifestyle amenities," says Prashant Thakur, Regional Director & Head -Research & Advisory, Anarock. 'For buyers who value access to curated amenities and community experiences, the premium associated with such projects can be well worth it, even if it means a slightly smaller functional space,' avers Purohit. Conversely, for those who prioritise maximum carpet area and functional layouts over lifestyle features, choosing a project with minimal loading and fewer amenities might be more suitable, he adds. Loading may also impact the resale value of your house. It can bolster or dilute the appeal of the tenement, depending on buyer preferences in the secondary market, experts say. Housing prices have shot up sharply Bengaluru has seen highest jump; Mumbai commands biggest premium. 'On one hand, projects with premium amenities and lifestyle-driven features often appeal to a certain segment of buyers looking for comfort, convenience, and community living. However, if the functional space feels significantly compromised, it could limit the resale pool or affect price appreciation over time,' contends Purohit. 'Higher loading may affect the resale value in some cases, particularly when similar properties in the vicinity or even nearby locations offer more usable space at the same price,' Thakur remarks. How to calculate loading factor Buyers must verify charges to avoid overpaying for less space. If super built-up area is 1,000 sq ft and carpet area is 750 sq ft: Older or more thoughtfully designed homes with minimal loading and better space distribution often attract greater interest during resale, Rathi points out. However, if a new project is developed by a well-known builder and offers premium amenities, some buyers may still find value in the overall lifestyle offering. 'So, while high loading doesn't automatically lower resale prices, it may narrow the pool of interested buyers due to perceived space inefficiency,' Rathi adds. Get clarity on the loading factor For homebuyers, clarity on the loading factor and actual living area is essential. Unfortunately, the practise of 'loading' in real estate is shrouded in a web of secrecy. Developers conveniently do not mention the loading factor in their glossy sales brochures. Regulations do not mandate developers to disclose this figure either. This leaves homebuyers in the dark about the value they are getting. To be sure, the Real Estate (Regulation and Development) Act, 2016, requires developers to mention the total carpet area provided to homebuyers. But not all states enforce the law. 'In most cases, buyers across cities, except in Maharashtra, are unaware of how much they pay towards the overall usable space within their apartment,' avers Thakur. Besides, there is no law that currently limits the loading factor in residential housing. It is left to the discretion of the developers, who justify higher loading for the amenities provided. In the absence of any regulation, some developers charge loading as high as 50% or more for their projects, experts point out. The onus is on buyers to remain vigilant. Here's what you can do: Ask your builder, the exact carpet area you are paying for and compare it with the super built-up area. 'Request a clear breakdown of costs, what portion goes to actual usable space and what is for common amenities,' says Rathod. Compare carpet-to-super built-up ratios across similar projects, thoroughly study floor plans, and, if needed, consult an architect or a real estate adviser. 'Comparing loading percentages across projects can highlight anomalies and offer a strong basis for negotiation, especially if the loading appears excessive,' Purohit comments.

Mint

8 hours ago

• Mint

Massive rise in betting ads: A call for vigilance

With the growing number of advertisements for illegal offshore betting platforms flooding the digital space, the Advertising Standards Council of India (ASCI) has had to take serious steps to protect consumers. Recognizing the scale and sophistication of these ads, ASCI instituted advanced digital monitoring systems and deployed specialized vigilance teams to detect and report misleading promotions. What these teams uncovered was alarming. Many of these platforms used artificial intelligence to create deepfake videos featuring fabricated testimonials—people claiming they had made so much money from betting that they no longer needed to work. These ads were not only deceptive but dangerously persuasive. In several cases, up to 60 different URLs directed users to the same illegal betting site—an elaborate strategy to bypass detection and takedown measures. Also read: Here's how to navigate complex TDS rules for ads, software subscriptions & more Even more concerning was how such promotions were embedded in seemingly innocent content. Cooking tutorials, lifestyle tips, and other harmless-looking videos were found to contain hidden links—via tickers, hashtags, or even bio links—leading viewers to betting platforms. Major social media platforms, despite their advanced ad systems, struggled to catch and block these ads. This raises a crucial question: Who is responsible for ensuring such illegal and misleading ads don't reach consumers? While ASCI continues to do its part through proactive monitoring, there is a clear need for stronger platform accountability to detect such violations of the law, and prevent such ads from appearing in consumer feeds. ASCI works closely with government regulators to report such breaches of the law, who then take them down; however addressing this at scale remains a challenge. Digital infrastructure growth and smartphone usage, while being critical economic drivers, have facilitated such potentially harmful targeting of consumers. As has the promotion of betting apps by celebrities and social media influencers. A Digital India Foundation report in March said that just four such platforms accounted for 1.6 billion visits in a mere three months. Organic search traffic to these sites was recorded at 184 million visits. Also read: Brands pile in, ads get shorter: IPL 18 rewrites the rules of cricket-time marketing: Report Another recent report, by the think tank Consumer Unity & Trust Society (CUTS) International, warned about the explosive growth of illegal online gambling platforms, of threats to minors, young adults and national financial integrity. Such platforms, the report said, had estimated annual deposits of about $100 billion and the top 15 illegal platforms logged 5.4 billion visits in FY25. The CUTS report further highlighted that these platforms often bypass basic safeguards such as Know Your Customer and age verification, giving minors and young adults unregulated access to gambling content. Some offshore operators even use tactics like cash-on-delivery, making it easier for minors who may lack digital payment access, to gamble. Such is their reach that in March 2025, one such platform outranked even universally popular sites like and as per reports. ASCI's recently released annual complaints report showed a sharp spike in the rise of illegal offshore betting and gambling ads. From 1,311 in 2023-24 to 3,081 in 2024-25, the number of cases reported more than doubled. ASCI enhanced monitoring resources and set up a special monitoring cell, under an MoU it signed with the federations representing Real Money Games, which are legally permitted and regulated in most states in India. Left unchecked, the gambling platforms can lead to addictive behaviour and financial risks. Additionally, they can expose consumers to risks like cyber attacks and unsafe online environments. Such unregulated activity can even threaten national security by acting as channels for money laundering and terror financing. Also read: From skincare to smartphones: Ads by Apple, Mamaearth, L'Oreal under scrutiny Hence, there is a serious risk for consumers and society. As digital infrastructure and access to it grows, such platforms have the potential to target more consumers who are unaware of their illegality and harmful impacts. Regular monitoring and collaborations between industry, self-regulators and the government will be the key to consumer protection in the days to come. In the long term, a comprehensive regulatory framework that addresses some of the challenges of online gambling will need to be established to provide systemic solutions to this large-scale consumer threat. Manisha Kapoor is chief executive officer and secretary general of the Advertising Standards Council of India.