Over the years, the Centre has gradually focused on and fine-tuned the new tax regime, without making changes to the old tax regime. First announced in Budget 2020, the new tax regime gives taxpayers the option of paying lower tax rates if they let go of the deductions and exemptions available under the old regime. Experts believe that the government could phase out the old tax regime this time or perhaps in the next couple of years amid the push to bring people on board with the new regime. “The old tax regime is likely to be phased out soon. However, CA Chirag Chauhan, founder of Mumbai-based CA Chauhan & Company noted that a phase out is unlikely as the new I-T Act mentions both the regimes.

Source: Mint February 01, 2026 08:12 UTC