Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
New tax regime offers lower income tax slab rates with significantly fewer deductions and exemptions as an simplified alternative.
New regime has lower tax rates but you mostly give up 80C, HRA, and other deductions — good if you do not claim much.
Default regime for individuals from FY2023-24 unless old regime opted. Allows limited benefits like standard deduction, employer NPS contribution, agniveer corpus. Section 115BAC governs rates revised periodically in budgets.
Young professional with ₹10 lakh income, no home loan, minimal investments: new regime tax may be ₹25,000 lower than old without deductions.
Generally no for most 80C investments. Limited exceptions exist — verify each deduction's regime eligibility in current IT Act.
Capital gains often taxed at same special rates regardless of regime choice, but overall computation interacts — model full return.
Pensioners with SCSS/FD interest and medical 80D may still benefit from old regime despite lower new slabs — calculate both.