Google trend - New tax regime

New tax regime - 10 things to know with detail

• The new tax regime is aimed at simplifying the tax system and reducing tax compliance burden for individuals.
• Under the new tax regime, taxpayers have the option to choose between the old tax regime with deductions and exemptions or the new tax regime with lower tax rates but no deductions or exemptions.
• The new tax regime has lower tax rates compared to the old tax regime, with tax slabs ranging from 5% to 30% depending on the income level.
• Taxpayers opting for the new tax regime will not be able to avail deductions such as HRA, LTA, standard deduction, deductions under Section 80C, 80D, 80E, etc.
• However, taxpayers can still avail deductions under Section 80CCD (2) for employer contribution to NPS, 24(b) for interest on housing loan, and 87A for rebate on tax payable.
• The new tax regime is beneficial for individuals with lower deductions and exemptions as they can save on tax outgo by opting for lower tax rates.
• Taxpayers with higher deductions and exemptions may find it more beneficial to stick to the old tax regime to maximize tax savings.
• Taxpayers can switch between the old and new tax regimes every financial year based on their tax-saving goals and financial situation.
• It is important for taxpayers to calculate their tax liability under both regimes to determine which option is more beneficial for them.
• Taxpayers should consult with a tax advisor or financial planner to understand the implications of the new tax regime and make an informed decision based on their individual tax situation.