Income Tax Exemptions: Navigating the Old and New Tax Regimes

As India approaches Budget 2025, taxpayers are keenly observing the differences between the old and new income tax regimes. The new regime, introduced in 2020, offers lower tax rates but eliminates many popular exemptions such as those under Sections 80C and 80D. Approximately 72% of taxpayers have opted for this simplified structure, benefiting from a standard deduction increase to ₹75,000.
 In contrast, the old regime remains favored by 28% of taxpayers who continue to utilize various deductions for housing loans and insurance premiums, amidst calls for adjustments to reflect rising costs of living. As Finance Minister Nirmala Sitharaman prepares for her upcoming budget announcement, discussions on whether to phase out the old regime entirely are intensifying, with many advocating for a single, streamlined tax system.
Source: Times of India, Financial Express,