New Tax Regime vs Old Tax Regime
By: EjazUlHaqBhat
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To file income tax returns, you must choose between new and old regime
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Old regime provides deductions for investments and insurance premiums
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But tax rates are higher - it's flat 30% for those earning over Rs 10 lakh annually
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The new tax regime offers lower tax rates and simplifies the tax process. But it does not provide the same range of exemptions and deductions
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The new tax regime may suit those with fewer investments or those who prefer simpler tax filing
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Standard deduction is Rs 75,000 in new regime and Rs 50,000 in old regime
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Assess both and choose the one that suits you best per your earnings and investments
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In old regime, calculate the deductions and apply tax slabs to the net taxable income
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In new regime, calculate tax based on your total income since there are no deductions
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