New or old, which tax regime is better for you?
The government announced a major overhaul of the income tax structure Saturday morning. While presenting the Union Budget 2020, Finance Minister Nirmala Sitharaman announced an alteration in Income tax slab rates. The finance minister in her second union budget provided an option to the taxpayer to pay tax as per the old slab rates or forgo all the major deduction and exemption that were available earlier and opt for the more relaxed new slab rates. Since the announcement has been made, I have been getting a lot of queries regarding the confusion of the suitability of these two separate tax regimes. People are getting confused and are looking for clarification regarding which tax scheme is suitable for them. Well, at prima fascia it can be said that the more exemptions an individual claims, the less likely he/she is to benefit from the new optional tax regime however which regime is beneficial will vary on a case to case basis. The effective tax rate for individuals with