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[zactortech]

Is it beneficial to switch to the new income tax regime from the old regime?

Deciding whether to switch to the new income tax regime from the old regime depends on various factors and individual circumstances.

The new tax regime offers lower tax rates but eliminates most deductions and exemptions available under the old regime. This simplifies tax calculations and reduces paperwork, making it appealing for taxpayers seeking convenience and ease of compliance.

However, the old tax regime allows for various deductions and exemptions under sections such as 80C, 80D, 80G, etc., which can significantly reduce taxable income. For some taxpayers, claiming these deductions may result in lower tax liability compared to the new regime, especially if they have significant eligible deductions.

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[zactortech]

Which tax regime is better now after budget 2023 for salary income above 20 lacs, old or new?

Determining whether the old or new tax regime is more advantageous for salary income above 20 lakhs following the 2024 budget depends on various factors and individual circumstances.

The old tax regime allows for various deductions and exemptions under Section 80C, 80D, 80G, etc., which can significantly reduce taxable income. However, the new tax regime offers lower tax rates without any deductions or exemptions.

For salary income above 20 lakhs, the tax rates under the old regime range from 20% to 30%, while the new regime offers a flat rate of 30% without deductions. Under the old regime, availing deductions can bring down the effective tax rate, depending on the amount and type of deductions claimed.

If you are looking for deductions then you should go for the old tax regime.

Need to calculate your income tax based on your salary? Zacortech's income tax tool makes it simple and hassle-free! Check it out here now: https://www.zactortech.com/calculators/income-tax-calculator and get to know which regime is better for you.