Tax Tango: Old vs. New Regime—Which Step Will You Take?

As the new financial year approaches, taxpayers must decide between the old and new tax regimes. The new tax regime, effective from April 1, 2025, offers simplified tax slabs with rates ranging from 0% to 30%. It provides significant tax relief, especially for middle-income earners, with income up to Rs 12.75 lakh being tax-free for salaried individuals. However, it lacks deductions available under the old regime, which might be beneficial for those with substantial investments or exemptions. Taxpayers should assess their financial situation to choose the regime that maximizes their savings.

Sources: Bajaj Finserv, Business Today, ClearTax