Old Tax Regime vs. New Tax Regime: A tricky choice for Salaried Individual Taxpayers

Abstract

On February, 2023, Finance Minister Nirmala Sitaraman had proposed varied steps to revamp the New Tax Regime for the financial year 2023-2024 corresponding to Assessment year 2024-2025. This article aims to assess the impact of these changes on tax liability of Individual Taxpayers if they opt for New Tax Regime. With the introduction of Standard Deduction and other exemptions, the New Tax Regime obviously looks more attractive in comparison to the previous New Tax Regime. New modified tax regime benefits mostly the salaried individual taxpayers with incomes more than Rs 5 lakhs.