Should you stick to the old tax regime or move to the new one?

Finance Minister Nirmala Sitharaman had announced a new regime for personal taxation while presenting the Union Budget. Minor changes have been effected in the tax brackets, and individual tax payers now have the option to continue with the existing tax structure or shift to the new slabs for FY 2020-21. With the new tax regimen, the central government has further sub-categorised income slabs, primarily for those declaring incomes between Rs 5 lakh and Rs 15 lakh. For many working professionals, it augurs well to take advantage of the various deductions and exemptions that can significantly reduce their taxable income. However, the new concessional tax regime that was announced in the Budget 2020 comes with a cost. Read this premium article and find out which one will benefit you.

There were a lot of expectations with the Union Budget from the salaried taxpayers for the next fiscal that the Indian Finance Minister Nirmala Sitharaman would provide some relief like was provided to the corporates a few months earlier. The Finance Minister announced quite a few changes related to the personal Income Tax including new tax slab. According to the government, with the introduction of the new personal income tax rates, the government estimates that these substantial benefits for the taxpayer, the government would forgo revenue worth Rs40,000 crores per year. This new income tax regime will be optional and those opting for it would need to forego most of the deductions and exemptions that they would have availed under the old regime. This new income tax regime brings ne...