Introduction

Tax planning often feels overwhelming, right? However, every salaried person constantly looks for legitimate ways to reduce taxable income while staying compliant with the Income Tax Act. Among several deductions, Section 80TTA stands out as a small yet effective benefit. It allows you to claim an exemption on savings account interest, directly lowering your tax liability.

Meanwhile, preparing taxes manually usually leads to stress and errors. Fortunately, the Automatic Income Tax Preparation Software All-in-One in Excel for F.Y.2025-26 simplifies everything. With this tool, you save time, ensure accuracy, and claim deductions such as 80TTA effortlessly.

Understanding Section 80TTA

Section 80TTA, introduced under the Income Tax Act, provides relief on savings account interest.

• Eligibility: Individuals and Hindu Undivided Families (HUFs) qualify for this deduction.
• Maximum Limit: You can claim up to ₹10,000 per financial year.
• Applicable Accounts: Savings accounts with banks, post offices, and co-operative banks.

Applicability for F.Y.2025-26

As per the Budget 2025, Section 80TTA continues to apply. Salaried persons and HUFs may claim up to ₹10,000 on savings account interest. However, senior citizens cannot use this section because they must claim under Section 80TTB, which offers higher deductions.

Benefits of Section 80TTA

You should care about 80TTA because:

1. It directly reduces taxable income.
2. It promotes savings as a financial habit.
3. It provides relief, especially for those with modest earnings.

Exclusions under Section 80TTA

Not all interest qualifies. Therefore, you cannot claim deductions for:

• Fixed deposit (FD) interest
• Recurring deposit (RD) interest
• Corporate bond or debenture interest
• Senior citizen claims (covered under Section 80TTB)

Practical Example of 80TTA Calculation

Assume you earned ₹14,000 interest from savings accounts in F.Y.2025-26.

• Eligible deduction: ₹10,000 (under 80TTA)
• Taxable portion: ₹4,000

Thus, instead of paying tax on ₹14,000, you only pay on ₹4,000. Although this deduction looks small, it creates a big difference when you combine it with other exemptions.

Role of Automatic Income Tax Preparation Software

Manual tax calculations often cause mistakes. Conversely, Excel-based All-in-One Tax Software ensures accuracy. With this tool, you can:

• Generate salary sheets automatically
• Calculate HRA exemptions instantly
• Incorporate deductions like 80TTA automatically
• Prepare ready-to-file tax computation sheets

Features of All-in-One Excel Software

This Excel software suits non-government employees perfectly. Moreover, it offers:

• Pre-built salary structures
• Automatic HRA exemption under Section 10(13A)
• Auto-prepared Form 10E for arrears relief (Section 89(1))
• A consolidated tax computation sheet

Step-by-Step Guide to Using Excel Tax Software

Follow these steps to prepare your taxes easily:

1. Download the Excel Tool from the below given link.
2. Enter salary details by inputting your pay structure.
3. Add savings account interest for the year.
4. Apply Section 80TTA exemption; the tool auto-deducts ₹10,000.
5. Review the tax sheet to see your revised liability.

In this way, you minimise errors and save valuable time.

Common Mistakes Taxpayers Make

You should avoid these mistakes to ensure smooth tax filing:

• Skipping savings account interest reporting.
• Claiming deductions meant for senior citizens under 80TTB.
• Exceeding the ₹10,000 cap.

Importance of Claiming 80TTA Properly

If you fail to claim correctly, you may receive income tax notices. Therefore:

• Collect yearly interest certificates from banks.
• Maintain records for future reference.
• Ensure deductions are applied only once across all accounts.

Comparison with Other Deductions

Section 80TTA works well with deductions like 80C (PF, LIC, ELSS) and 80D (health insurance). Unlike 80C, which requires specific investments, 80TTA applies automatically since your savings account already qualifies.

Conclusion

Section 80TTA may appear small, but it plays a significant role in reducing taxable income. By combining it with other deductions, you can lower your liability substantially. Thanks to the Automatic Income Tax Preparation Software All-in-One in Excel for F.Y.2025-26, claiming this deduction has never been easier.

Smart tax planning isn’t only about big deductions—it’s about not missing the small ones. So, use Section 80TTA wisely and let Excel software handle the heavy lifting.

FAQs

Q1. Who can claim a deduction under Section 80TTA?
Individuals below 60 years and HUFs with savings account interest can claim it.

Q2. Can NRIs claim 80TTA benefits?
Yes, NRIs with savings accounts in Indian banks qualify.

Q3. What is the maximum deduction limit?
The limit is ₹10,000 per financial year.

Q4. Does 80TTA apply to joint accounts?
Yes, but each holder must claim proportionately.

Q5. What is the difference between 80TTA and 80TTB?
80TTA applies to individuals and HUFs below 60 with a ₹10,000 limit, whereas 80TTB applies to senior citizens with a higher ₹50,000 limit.

👉 Download the Automatic Income Tax Calculator All-in-One for Non-Government Employees in Excel for the F.Y.2025-26 and enjoy these powerful features:

  

• Firstly, this Excel Calculator prepares your Tax Computed Sheet as per Budget 2025.
• Moreover, it includes an inbuilt salary structure for non-government employees.
• In addition, it generates an automatic salary sheet for simple record-keeping.
• Furthermore, it calculates H.R.A. exemption U/s 10(13A) instantly.
• Next, it automatically prepares Income Tax Form 12BA without mistakes.
• Also, it generates Automatic Form 16 Part A and B for compliance.
• Finally, it prepares the Automatic Income Tax Form 16 Part B, making filing smooth.

On September 02, 2025 by www.taxexcel.net

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The Union Budget 2025, presented on 01 February 2025, introduced significant updates to the new tax regime under Section 115BAC. The changes primarily target salaried taxpayers, professionals, and high-income individuals, making tax planning simpler yet effective. With the help of the Automatic Income Tax Preparation Software All-in-One in Excel for FY 2025-26, taxpayers can calculate and manage their liabilities seamlessly. Below, we provide a comprehensive guide on exemptions, deductions, tax slabs, and the latest provisions announced in Budget 2025.

What is the New Tax Regime for FY 2025-26 (AY 2026-27)?

The new tax regime, introduced in Budget 2020, offered lower tax rates but restricted exemptions and deductions. With the Union Budget 2025, the government enhanced its scope, making it more attractive for taxpayers. For FY 2025-26, the following income tax slabs apply:

Income Range (₹)	Tax Rate (%)
0 to 4,00,000	Nil
4,00,001 to 8,00,000	5%
8,00,001 to 12,00,000	10%
12,00,001 to 16,00,000	15%
16,00,001 to 20,00,000	20%
20,00,001 to 24,00,000	25%
Above 24,00,000	30%

Under this structure, income up to ₹4 lakh remains tax-free, and the highest marginal rate of 30% applies to income above ₹24 lakh.

Standard Deduction and Default Tax Regime

The government announced that the new tax regime is the default choice for salary withholding and tax calculations. Key highlights include:

• Salaried individuals can claim a standard deduction of ₹75,000, offering relief and effectively increasing the tax-free threshold to ₹12.75 lakh.
• Family pensioners can claim a standard deduction of ₹25,000, which was raised from ₹15,000 earlier.
• Taxpayers preferring deductions and exemptions of the old regime must opt for it explicitly.

Comparison of the New Tax Regime vs the Previous Year

FY / AY	Income Range (₹)	Tax Rate (%)	Rebate Limit (₹)
FY 2024-25 / AY 2025-26	0–3,00,000	Nil	7,00,000
	3,00,001–7,00,000	5%
	7,00,001–10,00,000	10%
	10,00,001–12,00,000	15%
	12,00,001–15,00,000	20%
	Above 15,00,000	30%
FY 2025-26 / AY 2026-27	0–4,00,000	Nil	12,00,000
	4,00,001–8,00,000	5%
	8,00,001–12,00,000	10%
	12,00,001–16,00,000	15%
	16,00,001–20,00,000	20%
	20,00,001–24,00,000	25%
	Above 24,00,000	30%

Major Highlights of Exemptions and Benefits in Budget 2025

1. Increase in Tax Rebate Limit

The tax rebate under Section 87A increased to ₹12 lakh, providing complete tax relief for individuals earning up to ₹12.75 lakh (after standard deduction). This ensures zero tax liability for a large portion of the salaried middle class.

2. Increase in Basic Exemption Limit

The basic exemption limit rose from ₹3 lakh (FY 2024-25) to ₹4 lakh in FY 2025-26, offering additional relief to all taxpayers.

3. Section 80TTB Deductions and Standard Deductions

• Salaried individuals continue to enjoy a ₹75,000 standard deduction.
• Family pensioners can now claim a ₹25,000 deduction.
• No changes were made to other standard deductions.

4. Lower Surcharge for High-Income Earners

The surcharge on ultra-high incomes has been rationalised:

• Income above ₹5 crore, previously taxed at 37%, now attracts only 25% surcharge.
• This significantly reduces the effective tax rate for the wealthy.

5. Default Applicability of New Tax Regime

Employers will now deduct TDS under the new tax regime by default. However, employees can opt for the old regime by filing a declaration.

Exemptions and Deductions Not Allowed in the New Tax Regime

While the new regime simplifies tax filing, it removes most exemptions. Taxpayers cannot claim:

• HRA, LTA, and Professional Tax.
• Deductions under Section 80C, 80D, 80E, 80G, 80CCD(1B), etc.
• Interest on home loans for self-occupied properties.
• Special allowances like education allowance, helper allowance, and minor child income allowance.

Exemptions Available in the New Tax Regime

Certain specific exemptions and deductions remain available:

• Transport allowance for PwDs.
• Employer’s contribution to NPS under Section 80CCD(2).
• Leave encashment under Section 10(10AA).
• Gratuity under Section 10(10).
• VRS compensation under Section 10(10C).
• Interest on let-out property under Section 24.
• Family pension deduction under Section 57(iia).
• Deposits in Agniveer Corpus Fund under Section 80CCH(2).

 

Tax Savings Under the New Regime: Salary-Wise Comparison

Annual Salary	Tax Payable (Old Regime)	Tax Payable (New Regime)	Savings
₹5,00,000	₹0*	₹0*	—
₹7,00,000	₹44,200	₹0*	₹44,200
₹10,00,000	₹1,06,600	₹0*	₹1,06,600
₹12,00,000	₹1,63,800	₹0*	₹1,63,800
₹15,00,000	₹2,57,400	₹97,500	₹1,59,900
₹18,00,000	₹3,51,000	₹1,05,800	₹2,00,200
₹20,00,000	₹4,13,400	₹1,92,400	₹2,21,000
₹24,00,000	₹5,38,200	₹2,92,500	₹2,45,700
₹26,00,000	₹6,00,600	₹3,51,000	₹2,49,600

*Rebate under Section 87A applies up to ₹12 lakh.

Which Regime is Better – Old vs New?

• Choose Old Regime if:
  You have large deductions like HRA, 80C investments, medical insurance, and housing loan interest.
• Choose New Regime if:
  • You want a simplified structure without paperwork.
  • Your deductions are small (< ₹2–3 lakh).
  • Your income is up to ₹12.75 lakh (zero tax payable).

Conclusion

The Union Budget 2025 has made the new tax regime highly favourable for a large section of salaried and middle-income taxpayers. With higher exemption limits, enhanced rebates, and simplified compliance, individuals can benefit significantly. However, taxpayers must still compare both regimes before filing returns to ensure maximum tax savings. Tools like the Automatic Income Tax Preparation Software All-in-One in Excel for FY 2025-26 provide accurate and quick calculations, empowering taxpayers to make the right choice.

Download Automatic Income Tax Preparation Software All-in-One in Excel for FY 2025-26

To simplify compliance, the Automatic Excel-Based Income Tax Calculator helps taxpayers compute liabilities instantly. Key features include:

• Instant tax computation as per the Budget 2025 rules.
• An inbuilt salary structure for both Government and Non-Government employees.
• Automatic generation of Salary Sheet.
• HRA exemption calculation U/s 10(13A).
• Arrears Relief calculation U/s 89(1) with Form 10E.
• Automatic Form 16 (Part A & B)
• Excel-based Form 16 Part B preparation.

This makes it a one-stop solution for tax filing and compliance in FY 2025-26.

   

 

On September 01, 2025 by www.taxexcel.net

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Introduction 

Do you sometimes feel like filing income tax is as confusing as solving a giant puzzle? You’re not alone! Many taxpayers struggle to understand which regime—old or new—is more beneficial. While the new tax regime offers simplified slabs, the old tax regime still shines because of its deductions and exemptions. In fact, the Benefits of the Old Tax Regime, as per the Budget 2025, continue to attract both government and non-government employees who want to save more on their taxable income.

To make things even easier, there’s now an Automatic Income Tax Preparation Software All-in-One in Excel, designed for F.Y.2025-26. This tool helps you calculate your tax liabilities without the headache of manual calculations.

In this article, we will explore the deductions, exemptions, and advantages of the old tax regime in detail. You will also learn how Excel-based tax preparation software can simplify your life. So, let’s dive in!

Table of Contents

Sr#	Headings
1	Understanding the Old Tax Regime
2	Benefits of the Old Tax Regime as per the Budget 2025
3	Key Differences Between the Old and New Tax Regime
4	Standard Deduction under the Old Tax Regime
5	House Rent Allowance (HRA) Exemption
6	Leave Travel Allowance (LTA) Benefits
7	Deductions under Section 80C
8	Deductions under Section 80D for Health Insurance
9	Home Loan Interest Deduction under Section 24(b)
10	Education Loan Deduction under Section 80E
11	Other Important Deductions (80CCD, 80G, 80TTA)
12	Tax Planning for Government Employees
13	Tax Planning for Non-Government Employees
14	How Automatic Income Tax Preparation Software Helps
15	Conclusion and Final Thoughts

Understanding the Old Tax Regime

The old tax regime allows taxpayers to reduce their taxable income by claiming various deductions and exemptions. Unlike the new tax regime, which offers lower tax rates but fewer benefits, the old system rewards those who plan their finances wisely. You can invest in savings schemes, pay insurance premiums, and claim house rent exemption to lower your taxable amount.

Benefits of the Old Tax Regime as per the Budget 2025

The Budget 2025 retained the flexibility of the old tax regime, making it a strong option for salaried individuals. Here are the major benefits:

• Multiple deductions and exemptions lower taxable income.
• Standard deduction increased to ₹75,000 for salaried individuals and pensioners.
• Freedom to plan investments as per personal needs.
• Suitable for individuals with high medical, housing, and education expenses.

In simple terms, the old regime works like a “buffet system” where you choose from a variety of tax-saving dishes, while the new regime is more like a fixed menu.

Key Differences Between the Old and New Tax Regime

• Old Regime: Higher tax rates but multiple deductions.
• New Regime: Lower tax rates but no major deductions.
• Who Benefits?: Taxpayers with significant investments and expenses find the old regime more rewarding.

Standard Deduction under the Old Tax Regime

The Budget 2025 increased the standard deduction to ₹75,000. This directly reduces taxable income for both government and non-government employees. For pensioners, this deduction brings much-needed relief by lowering tax liability automatically.

House Rent Allowance (HRA) Exemption

If you live in rented accommodation, an HRA exemption can save you a significant amount. Under the old regime, you can claim HRA based on:

• Actual HRA received.
• Rent paid minus 10% of salary.
• 50% of salary for metro cities and 40% for non-metro cities.

This exemption especially benefits salaried employees working in metropolitan areas.

Leave Travel Allowance (LTA) Benefits

Do you love travelling? The old tax regime allows you to claim the LTA exemption for travel expenses within India. You can claim this twice in a block of four years. Imagine saving tax while exploring new places—now that’s a win-win situation!

Deductions under Section 80C

One of the most popular sections, 80C, allows you to claim up to ₹1.5 lakh on investments like:

• Life Insurance Premiums
• Employees’ Provident Fund (EPF)
• Public Provident Fund (PPF)
• Tax-saving Fixed Deposits
• Tuition fees for children

This deduction helps individuals save significantly by promoting financial discipline.

Deductions under Section 80D for Health Insurance

Health is wealth, but medical expenses can drain finances. Section 80D provides deductions for health insurance premiums:

• Up to ₹25,000 for individuals and their families.
• An additional ₹50,000 for senior citizens.

This ensures financial protection while lowering taxable income.

Home Loan Interest Deduction under Section 24(b)

Homeowners benefit greatly from the old regime. You can claim up to ₹2 lakh on home loan interest paid annually. This makes buying a home more affordable while reducing tax liability.

Education Loan Deduction under Section 80E

Investing in education pays lifelong dividends. The old tax regime allows a deduction on interest paid for education loans for up to 8 years. This is a huge relief for families funding higher education.

Other Important Deductions (80CCD, 80G, 80TTA)

• 80CCD(1B): Extra ₹50,000 deduction for NPS contributions.
• 80G: Deduction for donations to charitable institutions.
• 80TTA/80TTB: Deduction on savings account interest.

These smaller deductions add up to make the old regime highly beneficial.

Tax Planning for Government Employees

Government employees usually receive structured salary packages with allowances like HRA, LTA, and transport allowance. By using the old regime effectively, they can claim these exemptions while also investing under 80C, making tax planning both easy and rewarding.

Tax Planning for Non-Government Employees

Private-sector employees often rely more on deductions like health insurance, NPS, and education loans. The old regime helps them maximise savings by customising deductions as per their lifestyle needs.

How Automatic Income Tax Preparation Software Helps

Manually calculating tax can be stressful and error-prone. The Automatic Income Tax Preparation Software All-in-One in Excel offers:

• Pre-built salary structures for both government and non-government employees.
• Automatic calculation of exemptions like HRA, LTA, and deductions under various sections.
• Instant tax computation as per the Budget 2025
• User-friendly interface that works even for people with limited Excel knowledge.

This software ensures that you never miss a deduction and always pay the right amount of tax.

Conclusion and Final Thoughts

The Benefits of the Old Tax Regime as per the Budget 2025, clearly outweigh the new regime for those who invest wisely and have eligible expenses. By claiming multiple deductions and exemptions, taxpayers can enjoy substantial savings. Whether you’re a government or non-government employee, planning under the old regime ensures maximum benefits. And with Automatic Income Tax Preparation Software in Excel, filing taxes has never been easier!

FAQs

1. Who should choose the old tax regime in FY 2025-26?
   Individuals with significant investments in 80C instruments, home loans, or health insurance should prefer the old regime.
2. Can pensioners claim the standard deduction under the old regime?
   Yes, pensioners are eligible for the standard deduction of ₹75,000 introduced in Budget 2025.
3. Is the HRA exemption available under the new tax regime?
   No, an HRA exemption is available only under the old tax regime.
4. What is the maximum deduction allowed under Section 80C?
   Taxpayers can claim up to ₹1.5 lakh under Section 80C.
5. How does Excel-based tax preparation software help employees?
   It automates calculations, reduces errors, and ensures all deductions and exemptions are applied correctly.

Download Automatic Income Tax Calculator All in One for Government and  Non-Government Employees in Excel for the F.Y. 2025-26

Features of this Excel Utility:

• This Excel Calculator prepares your Tax Computation Sheet instantly as per Budget 2025.
• It includes a built-in Salary Structure for Non-Government Employees.
• It generates your Salary Sheet automatically.
• It calculates H.R.A. Exemption U/s 10(13A automatically.
• Automatic Calculate Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E
• It creates Form 16 Part A and Part B automatically.
• It prepares Income Tax Form 16 Part B automatically.
• It generates Income Tax Form 12BA automatically.

   

On August 25, 2025 by www.taxexcel.net

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Introduction

If you are a salaried employee in West Bengal, especially for the Financial Year (FY) 2025-26, you might have already come across the term Form 10-IE. At first glance, it might sound technical or confusing, but don’t worry. By the end of this article, you will not only know what the Form 10-IE is but also how to use it effectively with Automatic Income Tax Preparation Software All-in-One in Excel.

Think of Form 10-IE as your “switchboard.” Just like you flip a switch at home to choose between light or fan, Form 10-IE helps you switch between the old tax regime and the new tax regime. Without it, your choice cannot be officially recorded by the Income Tax Department.

To make things easier, we’ll break down this concept into simple steps and also show how Excel-based automatic software can save your time and reduce mistakes.

Table of Contents

Sr#	Headings
1	Understanding What is the Form 10-IE
2	Why Do Employees Need Form 10-IE?
3	Difference Between Old and New Tax Regimes
4	How Form 10-IE Works for West Bengal State Employees
5	Eligibility to File Form 10-IE
6	When Should You File Form 10-IE?
7	Step-by-Step Process to File Form 10-IE
8	Common Mistakes People Make While Filing Form 10-IE
9	Advantages of Filing Form 10-IE on Time
10	Introduction to Automatic Income Tax Preparation Software in Excel
11	Features of the All-in-One Excel Utility
12	How West Bengal State Employees Benefit from Excel Tax Software
13	Comparison: Manual Filing vs. Automatic Excel Utility
14	Practical Example: Tax Calculation with Form 10-IE in Excel
15	Final Tips for West Bengal Employees for F.Y.2025-26
16	Conclusion
17	FAQs

1. Understanding What is the Form 10-IE

Form 10-IE is a mandatory declaration form that taxpayers must submit if they want to opt for the new income tax regime under Section 115BAC of the Income Tax Act. Simply put, this form communicates your decision to the tax department about whether you will follow the old regime (with deductions and exemptions) or the new regime (with lower tax rates but fewer deductions).

2. Why Do Employees Need Form 10-IE?

Employees in West Bengal, just like in other states, need Form 10-IE because:

• The Income Tax Department requires official documentation of your regime choice.
• Without filing it, your tax computation may automatically follow the old regime.
• It helps avoid confusion between your employer’s payroll system and your actual tax return.

3. Difference Between Old and New Tax Regimes

To truly understand the importance of Form 10-IE, you must know the difference:

• Old Regime: Allows exemptions (like HRA, LTA) and deductions (like 80C, 80D, etc.).
• New Regime: Offers reduced tax rates but removes most exemptions and deductions.

This choice can significantly affect your take-home salary. Filing Form 10-IE ensures that your preference is officially recorded.

4. How Form 10-IE Works for West Bengal State Employees

For state employees in West Bengal, Form 10-IE is especially important because:

• Salary structures often include allowances like House Rent Allowance (HRA), which matter only under the old regime.
• The West Bengal government salary rules align with central tax rules, so employees need to declare their preference correctly.
• The choice affects not just the yearly tax but also the monthly TDS deductions by the employer.

5. Eligibility to File Form 10-IE

You are eligible to file Form 10-IE if:

• You are an individual taxpayer or a Hindu Undivided Family (HUF).
• You want to shift from the old regime to the new regime (or vice versa).
• You are a salaried employee, pensioner, or professional.

6. When Should You File Form 10-IE?

• Ideally, before filing your Income Tax Return (ITR) for the financial year.
• If you want your employer to deduct TDS under the new regime, inform them early.
• You must file it online through the Income Tax e-filing portal.

7. Step-by-Step Process to File Form 10-IE

1. Log in to the Income Tax e-filing portal.
2. Go to Income Tax Forms under the e-file menu.
3. Select Form 10-IE.
4. Fill in basic details such as name, PAN, and assessment year.
5. Choose your preferred tax regime.
6. Verify and submit the form.

8. Common Mistakes People Make While Filing Form 10-IE

• Forgetting to file before the due date.
• Providing incorrect PAN details.
• Not keeping a copy of the acknowledgement.
• Switching regimes multiple times without clarity.

9. Advantages of Filing Form 10-IE on Time

• Smooth TDS deductions by your employer.
• Peace of mind at the time of filing ITR.
• Flexibility to switch regimes based on financial planning.

10. Introduction to Automatic Income Tax Preparation Software in Excel

The Automatic Income Tax Preparation Software All-in-One in Excel is a simple, user-friendly tool that:

• Prepares your Tax Computed Sheet
• Is updated as per the Budget 2025 rules.
• Works for both Government and Non-Government employees in West Bengal.

11. Features of the All-in-One Excel Utility

• Automatic calculation of HRA exemption under Section 10.
• Built-in salary structure for West Bengal
• Option to prepare tax sheets for old and new regimes
• Auto-generated Form 16 for employees.

12. How West Bengal State Employees Benefit from Excel Tax Software

• No need to manually calculate tax; the software does it.
• Saves time and reduces the chance of human error.
• Helps in the quick comparison of old vs new regimes.
• Provides ready-to-submit Form 10-IE details.

13. Comparison: Manual Filing vs. Automatic Excel Utility

Aspect	Manual Filing	Excel Utility
Time Taken	High	Very Low
Accuracy	Error-prone	Highly Accurate
User-Friendliness	Complicated	Simple & Automated
Regime Comparison	Difficult	Instant

14. Practical Example: Tax Calculation with Form 10-IE in Excel

Imagine you are a West Bengal State Employee with a salary of ₹8,00,000.

• Under the old regime, you can claim deductions like 80C (₹1,50,000) and HRA exemption.
• Under the new regime, you get lower tax rates but no deductions.

With the Excel software, you can enter your details and instantly see which regime saves more tax. It even prepares a ready reference for filing Form 10-IE.

15. Final Tips for West Bengal Employees for F.Y.2025-26

• Always compare both regimes before making a choice.
• File Form 10-IE before the due date.
• Use Excel software to avoid manual errors.
• Keep a digital copy of the acknowledgement for future reference.

16. Conclusion

To wrap up, understanding what the Form 10-IE is is crucial for every West Bengal State Employee in F.Y.2025-26. This form ensures that your tax regime choice is recognised by the Income Tax Department. Moreover, with Automatic Income Tax Preparation Software All in One in Excel, you can prepare your tax files quickly, accurately, and stress-free.

Choosing the right regime is like choosing the best road for your journey—while both may lead to the same destination, one may save you time and money.

17. FAQs

1. What is the Form 10-IE in income tax?
   Form 10-IE is a declaration form used to opt for the new tax regime under Section 115BAC.
2. Do I need to file Form 10-IE every year?
   Yes, you must file it whenever you want to switch regimes.
3. Can West Bengal State Employees file Form 10-IE online?
   Yes, it is filed through the official Income Tax e-filing portal.
4. What happens if I forget to file Form 10-IE?
   Your income will be taxed under the old regime by default.
5. Can I use Excel software to prepare details for Form 10-IE?
   Yes, the Automatic Income Tax Preparation Software in Excel provides all necessary details for easy filing.

Automatic Income Tax Preparation Software All-in-One in Excel for the West Bengal State Employees for the F.Y.2025-26

  

On August 21, 2025 by www.taxexcel.net

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Introduction

The New Tax Regime, as per Budget 2025, has changed the way individuals calculate their income tax. It’s like switching from a complex multi-lane highway filled with toll booths (old regime) to a smoother, faster expressway (new regime) — but with fewer stops for deductions and exemptions.

If you’re wondering whether this new system benefits you, or how to calculate your tax under it, this guide walks you through everything — from eligibility and rates to deductions, exemptions, and practical examples.

Table of Contents

Sr#	Headings
1	Understanding the New Tax Regime as per Budget 2025
2	Key Features of the New Tax Regime
3	Tax Slabs and Rates under the New Regime
4	Who Should Opt for the New Tax Regime?
5	Standard Deduction in the New Tax Regime
6	Exemptions and Allowances Allowed
7	Deductions Not Available in the New Regime
8	How the New Regime Became the Default Option
9	Comparing Old vs New Tax Regime
10	How to Switch Between Tax Regimes
11	Filing Requirements and Form 10-IEA
12	Using Excel Tax Calculators for Easy Computation
13	Step-by-Step Example of Tax Calculation
14	Common Mistakes to Avoid
15	Final Thoughts on Choosing the Right Regime

1. Understanding the New Tax Regime as per Budget 2025

The Government of India introduced the new tax regime in the Union Budget 2020-21 and revised it in subsequent budgets, including the latest Budget 2025. It aims to simplify the tax system by offering lower tax rates but removing most deductions and exemptions.

Instead of claiming multiple allowances and investment-based deductions, you pay tax based mainly on your income slab. This straightforward approach saves time and paperwork.

2. Key Features of the New Tax Regime

Under the New Tax Regime, as per Budget 2025, the government has focused on simplicity and efficiency. Key features include:

• Lower tax rates compared to the old regime.
• Fewer exemptions and deductions to claim.
• Standard deduction increased to ₹75,000 for salaried employees and pensioners.
• Default regime from FY 2023-24 onwards, unless you opt for the old regime.
• No need to maintain a long list of proofs for deductions.

3. Tax Slabs and Rates under the New Regime

The latest Budget 2025 revised the tax slabs to make them more beneficial for middle-class taxpayers:

Annual Income (₹)	Tax Rate
Up to ₹3,00,000	Nil
₹3,00,001 – ₹6,00,000	5%
₹6,00,001 – ₹9,00,000	10%
₹9,00,001 – ₹12,00,000	15%
₹12,00,001 – ₹15,00,000	20%
Above ₹15,00,000	30%

These rates apply before cess and surcharge.

4. Who Should Opt for the New Tax Regime?

The New Tax Regime benefits taxpayers who:

• Do not claim high deductions under sections like 80C, 80D, or HRA.
• Prefer a hassle-free tax filing process.
• Have straightforward salary structures without multiple allowances.

If your total deductions under the old regime are less than ₹3,00,000, the new regime could be more tax-friendly.

5. Standard Deduction in the New Tax Regime

From FY 2025-26, the government increased the standard deduction to ₹75,000 for all salaried individuals and pensioners under the new regime.

This means you automatically reduce your taxable income by ₹75,000 — without submitting any proof or documentation.

6. Exemptions and Allowances Allowed

Although the new regime removed most exemptions, you can still enjoy certain benefits:

• Retirement Benefits: Gratuity and leave encashment at retirement remain tax-free.
• Employer Contributions: NPS and Provident Fund employer contributions are exempt.
• Agnipath Scheme (Section 80CCH) income exemption.
• Conveyance Allowance: Work-related travel allowances for those without employer-provided transport remain exempt.
• Allowance for Disabled Employees: Transport allowance for employees with disabilities is tax-free.

7. Deductions Not Available in the New Regime

You cannot claim the following in the new regime:

• Section 80C deductions (like LIC, PPF, ELSS).
• Section 80D deductions (health insurance premium).
• HRA exemption (except under certain special conditions).
• Education loan interest deduction (Section 80E).
• Savings bank interest exemption (Section 80TTA/TTB).

8. How the New Regime Became the Default Option

From FY 2023-24 onwards, the new tax regime automatically applies unless you opt for the old regime.

If you want to use the old regime, you must file Form 10-IEA before the income tax return due date.

9. Comparing Old vs New Tax Regime

Feature	Old Regime	New Regime
Tax Rates	Higher	Lower
Deductions	Many	Limited
Compliance	High paperwork	Minimal paperwork
Best For	High deduction claimers	Simple salary earners

10. How to Switch Between Tax Regimes

• Salaried employees can choose the regime every year while filing returns.
• Business owners can switch only once after choosing the new regime.

11. Filing Requirements and Form 10-IEA

To opt for the old regime, file Form 10-IEA online before your ITR due date. Without this, the department considers you under the new regime by default.

12. Using Excel Tax Calculators for Easy Computation

You can avoid manual calculations by using automated Excel tools like the Download Automatic Income Tax Calculator All in One for the Non-Government Employees in Excel for the F.Y.2025-26.

This Excel calculator includes:

• Tax computation sheet as per Budget 2025.
• Built-in salary structure for non-government employees.
• Automatic HRA exemption calculation.
• Auto-generated Form 12BA, Form 16 Part A & B.

13. Step-by-Step Example of Tax Calculation

Example: A salaried person earns ₹12,00,000 annually.

1. Gross Income: ₹12,00,000
2. Less Standard Deduction: ₹75,000
3. Taxable Income: ₹11,25,000

Tax:

• 0 – 3,00,000 → Nil
• 3,00,001 – 6,00,000 → ₹15,000 (5%)
• 6,00,001 – 9,00,000 → ₹30,000 (10%)
• 9,00,001 – 11,25,000 → ₹33,750 (15%)

Total Tax = ₹78,750 + Cess

14. Common Mistakes to Avoid

• Forgetting to file Form 10-IEA when opting for the old regime.
• Not checking tax savings under both regimes before deciding.
• Misreporting taxable income due to missed allowances.

15. Final Thoughts on Choosing the Right Regime

The New Tax Regime, as per Budget 2025, is ideal for those who value simplicity and don’t rely heavily on deductions. But the best choice depends on your personal financial situation — compare both before filing.

FAQs

1. What is the main benefit of the New Tax Regime as per the Budget 2025?
   It offers lower tax rates with simplified filing, reducing paperwork.
2. Can I claim Section 80C deductions in the new regime?
   No, Section 80C deductions are not available under the new regime.
3. Is the new regime mandatory for everyone?
   No, but it is the default. You can opt for the old regime by filing Form 10-IEA.
4. What is the standard deduction under the new regime for FY 2025-26?
   It is ₹75,000 for salaried individuals and pensioners.
5. Which tax regime saves more money?
   It depends on your income and deductions. Calculate both before deciding.

Download Automatic Income Tax Calculator All in One for the Non-Government Employees in Excel for the F.Y.2025-26

 

[This Excel Calculator can prepare your Tax Computed Sheet as per Budget 2025 + Inbuilt Salary Structure for both Non-Govt Employees + Automatic Salary Sheet + Automatic calculation of H.R.A. Exemption U/s 10(13A + Automatic Form 12BA Automatic Form 16 Part A and B + Automatic Income Tax Form 16 Part B]

  

On August 19, 2025 by www.taxexcel.net

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Introduction

The Budget 2025 has brought new changes to the New Tax Regime, making it more appealing for salaried individuals. Many people are still confused—“Can I claim deductions under the new regime?” The answer is yes, but with certain limits.

If you’re a salaried employee for F.Y. 2025-26, you should know exactly what benefits you can get. And the easiest way to calculate everything? Using Income Tax Preparation Software All-in-One in Excel—a smart, user-friendly tool that automates your tax calculation without complicated formulas.

In this guide, we’ll break down the deductions available in the new tax regime, explain how they work, and show you how Excel-based tax software can save you hours of stress. Think of it as having a financial GPS—guiding you straight to maximum savings without wrong turns.

Table of Contents

Sr#	Headings
1	Understanding the New Tax Regime 2025
2	Key Features of the New Tax Regime
3	Who Should Opt for the New Tax Regime?
4	Deductions Allowed in the New Tax Regime
5	Standard Deduction for Salaried Persons
6	Deduction for EPF and NPS Contributions
7	Leave Travel Allowance (LTA) Benefit
8	Employer’s Contribution to NPS
9	Transport Allowance for Differently-Abled Employees
10	Family Pension Deduction
11	How Automatic Income Tax Preparation Software All-in-One in Excel Works
12	Step-by-Step Process to Use the Excel Software
13	Advantages of Using Excel-Based Tax Preparation Tools
14	Common Mistakes to Avoid in Tax Filing
15	Final Tips for Maximising Your Savings

1. Understanding the New Tax Regime 2025

The New Tax Regime, introduced in 2020 and enhanced in Budget 2025, offers lower tax rates but with limited deductions compared to the old regime. It’s designed for simplicity—fewer exemptions, fewer calculations, and faster filing.

2. Key Features of the New Tax Regime

• Lower tax slabs compared to the old regime.
• Standard deduction introduced for salaried individuals.
• Limited deductions but faster, easier compliance.
• No need to submit multiple proofs for most exemptions.

3. Who Should Opt for the New Tax Regime?

You may benefit from the new regime if:

• You don’t have significant tax-saving investments.
• You want faster, paperless filing.
• Your annual income is moderate, and you prefer lower rates over multiple deductions.

4. Deductions Allowed in the New Tax Regime

While most traditional exemptions like 80C, 80D, and HRA are unavailable, you still get:

• Standard deduction for salaried employees.
• Employer’s contribution benefits.
• Specific allowances for special categories.

5. Standard Deduction for Salaried Persons

Budget 2025 retains the ₹75,000 standard deduction for salaried individuals and pensioners. This is automatically applied—no paperwork required.

6. Deduction for EPF and NPS Contributions

While your own contribution to EPF or NPS is not deductible under most sections in the new regime, your employer’s contribution to NPS (up to 10% of salary) is still exempt.

7. Leave Travel Allowance (LTA) Benefit

LTA is not generally available in the new regime—unless specified for government employees in special cases. Always check with your HR before claiming.

8. Employer’s Contribution to NPS

Under Section 80CCD(2), your employer’s contribution to NPS up to 10% of basic + DA is deductible even in the new regime.

9. Transport Allowance for Differently-Abled Employees

Differently-abled employees get a transport allowance exemption of ₹3,200 per month, even under the new regime.

10. Family Pension Deduction

If you receive a family pension, you can claim the lesser of:

• ₹15,000
• Or one-third of the pension amount

11. How Automatic Income Tax Preparation Software All-in-One in Excel Works

This Excel-based software is pre-programmed with the latest tax rules from Budget 2025. You simply enter:

• Salary details
• Allowances
• Deductions (if any)

It instantly calculates your tax liability—just like a calculator on steroids, but without the risk of human error.

12. Step-by-Step Process to Use the Excel Software

1. Download the latest version from the link below
2. Enter personal details (Name, PAN, etc.).
3. Fill salary breakup from your Form 16.
4. Add employer contributions if applicable.
5. Review the auto-generated tax report.

13. Advantages of Using Excel-Based Tax Preparation Tools

• Accuracy – No manual miscalculations.
• Time-saving – Complete tax in minutes.
• Budget-friendly – No expensive software needed.
• Offline access – No internet required.

14. Common Mistakes to Avoid in Tax Filing

• Choosing the wrong tax regime.
• Forgetting employer NPS contributions.
• Missing the family pension deduction.
• Not using updated tax software.

15. Final Tips for Maximising Your Savings

• Compare both regimes before filing.
• Use Income Tax Preparation Software All-in-One in Excel to avoid errors.
• Keep all payslips and proof documents handy.

Conclusion

The New Tax Regime 2025 offers simplicity, but you still need to know the deductions you can claim. By combining your knowledge with Income Tax Preparation Software All-in-One in Excel, you can file confidently and save more. Think of it as your financial co-pilot—keeping you on the right track without turbulence.

FAQs

1. Can I claim 80C deductions under the new tax regime?
   No, most deductions under 80C are not available in the new regime.
2. Is the standard deduction available in the new regime?
   Yes, salaried employees get a ₹75,000 standard deduction.
3. Does the Excel tax software work for both regimes?
   Yes, it can calculate tax for both old and new regimes.
4. Can I use the software without the internet?
   Yes, Excel-based tax software works offline.
5. Is the new tax regime better than the old one?
   It depends on your income and deductions—compare both before deciding

Download Auto Calculate Income Tax Preparation Software All in One in Excel for Government and Non-Government Employees for the Financial Year 2025-26 as per Budget 2025

Features of this Excel Utility:

1. This Excel utility prepares and calculates your income tax as per the New Section 115 BAC (covering both the New and Old Tax Regime).
2. This Excel utility lets you choose between the New and Old Tax Regime.
3. This Excel utility provides a unique salary structure for both Government and Non-Government Employees.
4. This Excel utility includes an Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E, covering the F.Y. 2000-01 to F.Y. 2025-26 (Updated Version).
5. This Excel utility generates an Automated Income Tax Revised Form 16 Part A&B for the F.Y. 2025-26.
6. This Excel utility produces an Automated Income Tax Revised Form 16 Part B for the F.Y. 2025-26.

   

 

On August 18, 2025 by www.taxexcel.net

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