Old vs New Tax Regime

Currently there are 2 tax regimes in India – Old and New Tax Regime

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The Old Tax Regime prevailed before the introduction of the New Tax Regime

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Under the Old Regime, taxpayers can claim various deductions and exemptions under different sections of the I-T Act

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The Old Tax Regime offers more than 70 deductions and exemptions

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The most popular deduction is Sec 80C, which allows for a reduction of taxable income up to Rs 1.5 lakh

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The New Tax Regime was introduced in the Budget 2020

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In the New Regime tax slabs were altered, and taxpayers were offered concessional tax rates

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However, taxpayers opting for the New Regime can't claim several exemptions and deductions

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The Old Regime may be beneficial for those with investment goals

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The New Regime suits those who are flexible with investments and don't want to invest in tax-saving instruments

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The choice between the two depends on individual preferences and financial goals

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