Decoding The Differences

WEB Tax under Old vs New Regime

Decoding the Differences

The Indian government has introduced a new tax regime, offering taxpayers an alternative to the existing old tax regime. To help you make an informed decision, we present a comparison of the two regimes.

Key Considerations

Old Tax Regime:

• Higher tax slabs, allowing for deductions and exemptions
• Lower standard deduction (Rs. 50,000)
• Provides various deductions for investments, expenses, and donations

New Tax Regime:

• Lower tax slabs, but fewer deductions and exemptions
• Higher standard deduction (Rs. 2.5 lakh)
• Limited deductions available for certain investments and expenses

Tax Slabs Comparison

Income (Rs.)	Old Regime	New Regime
Up to 5,00,000	0%	0%
5,00,001 - 10,00,000	20%	10%
10,00,001 - 12,50,000	30%	15%
12,50,001 - 15,00,000	30% + 12,500 rebate	20%
15,00,001 - Above	30% + 25,000 rebate	20% + 15% surcharge

Conclusion

The choice between the old and new tax regimes depends on individual circumstances and financial planning. Those who benefit significantly from deductions and exemptions may prefer the old regime. However, those seeking simplicity and a wider tax base may consider the new regime. It's essential to carefully evaluate your financial situation and consult with a tax professional to make the optimal decision.