Which Will Be Best for Choosing Old and New Tax Regime as per Budget 2025 with Tax Calculator All in One for the West Bengal State Employees for the F.Y.2025-26

Table of Contents

Introduction

Are you a West Bengal state employee scratching your head over which tax regime to choose this financial year? You’re not alone. With the Old and New Tax Regime as per Budget 2025, making the right decision can feel like solving a Rubik’s cube blindfolded. But don’t worry—we’ll break it all down for you using simple language and the help of a Tax Calculator All in One, so you can make a confident, informed choice for the F.Y. 2025-26.

Let’s dive in and simplify this!

Sr#	Headings
1	Understanding the Two Tax Regimes
2	Who Should Choose the Old Tax Regime?
3	Key Features of New Tax Regime as per Budget 2025
4	What Changed in Budget 2025?
5	Standard Deduction and Other Allowances
6	Who Should Choose the New Tax Regime?
7	Who Should Choose New Tax Regime?
8	Role of Tax Calculator All in One
9	Scenario Comparison: With and Without Deductions
10	Tax Slab Rates for F.Y. 2025-26
11	West Bengal State Employees’ Tax Planning
12	Case Study: Mr. Sen – A West Bengal Govt Employee
13	Form 10E and Arrears Relief U/S 89(1)
14	Tips to Maximize Tax Savings
15	Final Checklist Before Choosing Your Regime

1. Understanding the Two Tax Regimes

Think of the Old and New Tax Regimes like two roads to the same destination—paying your income tax. The Old Regime is like a familiar road full of twists and turns (deductions and exemptions), while the New Regime is like a straight highway with no stops but lower tolls (tax rates).

2. Key Features of the Old Tax Regime

The Old Tax Regime allows for:

Standard Deduction
HRA (House Rent Allowance)
LTA (Leave Travel Allowance)
Section 80C, 80D, 80E deductions, etc.

This is best suited for those who have planned investments and claim multiple deductions.

3. Key Features of New Tax Regime as per Budget 2025

The New Tax Regime as per Budget 2025 offers:

Lower tax rates
Fewer deductions allowed
Standard Deduction of ₹50,000 is still available
The default regime if no option is chosen

Perfect for those who don’t claim many deductions or prefer a simpler tax filing process.

4. What Changed in Budget 2025?

Budget 2025 reinforced the government’s push towards the New Regime:

Raised rebate under Section 87A up to ₹7 lakh of taxable income
Retained standard deduction
Simplified slab structure in the New Regime
Old Regime still allowed, but not the default

5. Standard Deduction and Other Allowances

Even in the New Tax Regime, the government now allows ₹50,000 as standard deduction. However, HRA, 80C, 80D, etc., remain exclusive to the Old Regime. This is a game changer for salaried individuals like West Bengal state employees.

6. Who Should Choose Old Tax Regime?

Choose the Old Regime if:

You claim deductions over ₹2.5 lakh
You have home loan interest under 24(b)
You get HRA and live in a rented house
You pay for health insurance and invest in PF, ELSS, etc.

If you’re a well-planned taxpayer, this could be your best bet.

7. Who Should Choose the New Tax Regime?

Pick the New Regime if:

Your deductions are minimal
You want lower tax rates with fewer calculations
You earn income from multiple employers (job switchers)
You want to save time and effort

Great for new employees, unplanned investors, and mid-level earners.

8. Role of Tax Calculator All in One

A Tax Calculator All in One tailored for West Bengal State Employees can:

Auto-calculate taxes under both regimes
Show comparisons side by side
Help with Form 10E for arrear tax relief
Include all deductions and exemptions allowed

It’s like a GPS for your tax journey—showing you the fastest and safest route!

9. Scenario Comparison: With and Without Deductions

Income	Deductions Claimed	Old Tax Regime	New Tax Regime
₹10,00,000	₹2,50,000	₹65,000	₹60,000
₹10,00,000	₹50,000	₹80,000	₹60,000

The more deductions you claim, the more Old Regime makes sense. Without them, New Regime wins.

10. Tax Slab Rates for F.Y. 025-26

Old Tax Regime Slabs:

₹0 – ₹2.5L: Nil
₹2.5L – ₹5L: 5%
₹5L – ₹10L: 20%
Above ₹10L: 30%

New Tax Regime (Budget 2025):

₹0 – ₹3L: Nil
₹3L – ₹6L: 5%
₹6L – ₹9L: 10%
₹9L – ₹12L: 15%
₹12L – ₹15L: 20%
Above ₹15L: 30%

11. West Bengal State Employees’ Tax Planning

State employees in West Bengal often receive:

Dearness Allowance (DA)
HRA
Medical Allowance
Pension benefits

Using these for maximum deductions under Old Regime can lead to better savings, provided they’re claimed properly.

12. Case Study: Mr. Sen – A West Bengal Govt Employee

Mr. Sen earns ₹12 lakh annually. He invests ₹1.5 lakh in PF, claims HRA, medical insurance, and education loan interest.

Old Regime tax: ₹85,000
New Regime tax: ₹1,10,000

He saves ₹25,000 under Old Regime. With a Tax Calculator All in One, this comparison was done in seconds!

13. Tips to Maximise Tax Savings

Use Section 80C to its fullest (PPF, LIC, ELSS, etc.)
Get health insurance under 80D
Claim education loan interest
Maintain rent receipts for HRA
Use Tax Calculator All in One to simulate scenarios

14. Final Checklist Before Choosing Your Regime

✅ Compare both regimes side by side
✅ Use the calculator to project your liability
✅ Include all your deductions in Old Regime
✅ Remember, New Regime is the default now
✅ Choose based on savings, not simplicity

Conclusion

Choosing between the Old and New Tax Regime as per Budget 2025 doesn’t have to be confusing. For West Bengal state employees, the right choice depends on how many deductions you can claim and your overall tax planning strategy. Use a Tax Calculator All in One, evaluate both paths, and go with what gives you the most savings.

After all, why pay more tax when you don’t have to?

FAQs

1. What is the default tax regime for F.Y. 2025-26?
The New Tax Regime is the default option unless you actively choose the Old Regime.

2. Can I switch regimes every year?
Yes, salaried individuals can switch between Old and New Regimes every financial year.

3. Is the standard deduction available in the New Regime?
Yes, as per Budget 2025, the ₹50,000 standard deduction is now available under the New Regime too.

4. Do I need Form 10E if I choose the New Regime?
No, Form 10E is only applicable under the Old Regime when claiming relief for arrears under section 89(1).

5. Where can I get a Tax Calculator All-in-One for West Bengal employees?
You can Download the Automatic Excel-based calculators from the below given link designed for West Bengal State Government employees from the below link, updated for F.Y. 2025-26.