ITR Filing 2025: If you have opted for the new tax regime, then you will get a rebate of Rs 75,000 under standard deduction on TDS deduction by the employer in Form 16. On the other hand, if a person switches from the new tax regime to the old tax regime, then he can claim only Rs 50,000 as standard deduction.
ITR Filing 2025: A big news is coming for those who file ITR. Form 16 for the financial year 2024-25 will be available to almost all salaried employees by June 15. Due to the implementation of the announcement made in the budget, many big changes will be seen in this year’s Form 16. This time Form 16 will give details of TDS on income from other sources and TCS (Tax Collected at Source) taken on certain special expenses etc.
However, this will be possible only if you have submitted Form 12BBA to your employer. Actually, the income tax rules were amended in the budget, so that salaried persons can inform their employer about the TCS taken on specific expenses along with TDS on other sources of their income.
This TDS and TCS can be adjusted (deducted) against the total tax deductible from the employee’s salary. This will help the employee and less TDS will be deducted from the salary than before. Apart from this, the government has increased the standard deduction for salaried people in the budget from Rs 50,000 to Rs 75,000 under the new income tax regime.
What will those in the new tax regime get?
In such a situation, if you have chosen the new tax regime, then you will get a rebate of Rs 75,000 under standard deduction on TDS deduction by the employer in Form 16. At the same time, if a person switches from the new tax regime to the old tax regime, then he can claim a standard deduction of only Rs 50,000.
Apart from this, if the employee has opted for the new tax regime for the financial year 2024-25 (assessment year 2025-26), then he can claim more tax exemption from his gross taxable income on the employer’s contribution to NPS.
Claim for deduction up to 14 percent of basic salary
In the new tax regime, employees can claim deduction of up to 14 percent of their basic salary under section 80CCD (2). This deduction can be claimed on the employer’s contribution to the employee’s National Pension System (NPS) account. This higher deduction will be reflected in your Form 16 only if you have opted for the new tax regime for TDS from salary.
At the same time, if the tax regime is changed from new to old while filing ITR, the deduction will be reduced. In the old tax regime, the employee will be eligible to claim deduction of only 10 percent of his basic salary under section 80CCD (2) on the employer’s contribution to NPS.
