New Tax Regime- For Salaried Persons
In Budget 2020, Nirmala Sitharaman, the finance minister, announced a new tax system with more tax slabs and lower tax rates. The majority of taxpayers have long requested this, but there is a catch: all deductions and exemptions from the previous tax system must be removed. The finance minister added to the confusion by giving taxpayers the option of choosing between the new regime and the existing one, leaving it up to them to make their own decision. Due to the combined factors of all these variables, tax rules have become more complicated rather than simpler. And if you’re wondering how to decide whether to choose the new or the old tax regime, this blog provides the information you need. We look at the new regime carefully, weigh its advantages, and compare it with the current tax structure. So, let’s begin. More tax slabs and a lower tax rate, but no option to lower taxes under the new tax regime. The new tax system differs from the previous one in two ways. One, under the ...