New Income Tax Slab Explained with E-Filing of Income Tax Overview

When it comes to personal finances, knowing your tax duty is an important aspect. Alongside this, you also need to be aware of various changes in regimes. Although the old system is still provided by the government, a lot of people are now seeking the new income tax slabs to see if they fit their financial objectives better.

Further, the process of e-filing of income tax has become more efficient, motivating more individuals to file their tax returns themselves. This post gives an overview of both the new slab pattern and the process of e-filing for income tax, with a view to enabling people to make more informed decisions.

A Change in the Way Income is Treated

Indian taxpayers, for generations, have been using a system that provided deductions and exemptions. From section 80C benefits on investments to house rent allowance (HRA), the previous regime benefited those who incurred expenses or saved in defined ways.

The new income tax slab, which was brought in 2020 and further amended in 2024 and 2025, modifies that style. It substitutes exemptions with reduced, eased tax rates—more suited to those who like flexibility more than tax-saving terms.

As compared to the previous regime, where exemptions based on age were provided, the current regime provides slab-based uniform treatment for all, irrespective of age. This is one point of serious consideration for senior citizens and retirees who enjoyed age-based limits.

Comparing the Two Regimes

Here’s how the tax slabs differ under the two systems:

Old Tax Regime (FY 2024–25)

For individuals below 60 years:

For senior citizens (60–80 years), the exemption limit starts at ₹3 lakh, and for super senior citizens (80+ years), it increases to ₹5 lakh.

New Tax Regime (FY 2025–26)

The simplified structure under the new system removes the need to invest in specific instruments for tax benefits. However, that convenience comes at the cost of losing exemptions like 80C, 80D, or interest deductions on home loans.

What Should Taxpayers Think Through Before Making the Switch?

Selecting a tax regime is not all about numbers—it’s about your overall financial behaviour and longer-term goals.

The new system might suit:

• New professionals who don’t yet have much invested in tax-saving products
• Those who prefer to maximise liquidity as opposed to long-term savings
• Individuals with fewer expenses to deduct

The old system might still suit:

• Taxpayers with mortgage loans or school fees
• Those investing periodically in insurance, PPF, ELSS, or NPS
• Senior citizens, depending on slab-based age benefits

Although the government has set the new income tax slab as the default from FY 2023–24 onwards, taxpayers may still choose the old system while filing.

Filing Returns Online: What Has Changed?

Over the last few years, the e-filing of income tax has moved from being a technical task to a simplified user journey. Individuals can now file directly through the official portal using pre-filled forms and digital verifications.

A More Detailed Look at the E-Filing Process

Filing your income tax return online is now simpler than ever. The Income Tax Department’s digital portal offers an easy and secure way to file without needing physical forms or in-person visits. Here’s how to go about it:

Step 1: Log In

Visit incometax.gov.in  and log in using your PAN and password. New users must register first.

Step 2: Start Your Return

Go to ‘e-File’ > ‘Income Tax Return’ and select the correct assessment year.

Step 3: Choose Filing Mode

File directly online or upload a JSON file (if using software). Most individuals prefer the online mode.

Step 4: Pick the Right ITR Form

ITR-1 is for salaried individuals. ITR-2/3/4 applies if you have capital gains or business income.

Step 5: Select Your Tax Regime

Choose between the old regime and the new income tax slab, based on your financial situation.

 Step 6: Review and Submit

Confirm your details, submit the return, and complete e-verification within 30 days.

Key Filing Checks to Avoid Errors and Delays

Even though the digital platform has made return filing simpler, it’s easy to miss small but important steps—especially for those unfamiliar with the terminology or process. Whether you’re using the e-filing of income tax for the first time or do it annually, keeping these points in mind can save you from errors and delays:

Cross-check Your Income Details

Always ensure that your income entries match what’s available in Form 26AS and the Annual Information Statement (AIS). These represent your tax deducted at source (TDS), income from banks, and other sources.

Check Deduction Entries (Old Regime)

If you’re submitting under the old regime, cross-check your deductions—such as investments under Section 80C or premiums under Section 80D. Make sure you’ve recorded them correctly and entered the correct values.

Check With a Tax Calculator

Not certain which tax system is better for you? Make a wise choice with the help of a tax calculator. Simply input your income and deductions, and it will indicate which one is giving you more savings.

Update Bank Details

Any refund due to you will be deposited directly into your bank account. Therefore, double-verify that the account you’ve linked is active, correct, and pre-validated on the portal.

Don’t Forget to E-Verify

It’s not the end of the process when you file your return, though—you need to e-verify it as well. If you don’t, your ITR will not be treated as valid, even if you have filed within time. You get 30 days, so don’t let it slip through.

By following these easy steps, you can prevent errors, minimise the likelihood of tax notices, and expedite your refund.

Conclusion

The move to the new slab of income tax indicates a broader trend towards flexible, self-directed taxation. For those who are at ease with a more straightforward, exemption-based system, the new scheme can simplify finances.

At the same time, the modernised e-filing of the income tax process ensures that making the switch—or sticking with the old regime—can be done easily, securely, and independently.

What remains essential is making an informed choice. Whether you’re salaried or self-employed, in your 20s or 60s, understanding your tax options helps you protect your income—and plan for your future.