Choosing the right tax regime is a crucial decision for taxpayers in India. With the introduction of the new tax regime in Budget 2020, taxpayers now have the option to choose between the old Vs new tax regimes. While the new regime offers lower tax rates, it eliminates many of the deductions and exemptions that were previously available. For many individuals, especially those in specific income brackets, the old tax regime remains a compelling choice. Here’s an in-depth look at why the old tax regime continues to be a preferred option for many taxpayers.
Tax Slabs – Old Vs New Regime Tax Slabs
The table below shows the tax slab for Old Vs New Tax Regime as per the income tax website. The slab rate are much better for New tax regimes.
Why People prefer Old Tax Regime?
Even though income tax slabs are favorable for New tax regime, a lot of people still prefer the old tax regime. Here are some of the reasons:
Comprehensive Deductions Under Section 80C
One of the most significant…