This is the first year to choose, between the old tax regime with deductions and exemption and new tax regime without deductions and exemption but with lower slab rates, while filing your ITR. What the new tax regime providesThe option of new tax regime is available to all individuals and HUFs. Under the new tax regime tax is payable at lower slab rates on the income up to Rs. If you wish to opt for the new tax regime you have to forgo various tax deductions and exemptions otherwise available under old regime. However, looking at the tax benefits which majority of the taxpayer have to forgo, the benefits available with existing regime outweigh the benefits of lower rates of tax by migrating to new regime.

Source: Mint May 01, 2021 06:11 UTC