Overview

• The government pushed the AY 2025-26 return deadline to September 15, 2025, allowing filers a longer window to decide between regimes.
• Under the new tax framework, individuals with annual income up to Rs 12 lakh qualify for a full rebate and face virtually no tax liability.
• Salaried employees and pensioners can switch between the old and new regimes each year, while those with business or professional income must file Form 10-IEA and face a one-time lock-in.
• The old regime continues to offer allowances such as HRA, LTA, home-loan interest under Section 24(b) and broad deductions under Sections 80C to 80U.
• Losses from house property, capital gains or business income cannot be carried forward under the new regime, a factor that may influence long-term tax planning.