New vs Old Tax Regime, New tax regime

New vs Old Tax Regime
The new tax regime under the Income Tax Act in India, introduced in the Union Budget 2020-21, offers taxpayers an alternative tax structure with lower tax rates but without various deductions and exemptions available under the old tax regime.

New tax regime:
1. Lower Tax Rates:
The new tax regime presents lower tax rates in contrast to the old regime. It has seven slabs with reduced rates, ranging from 5% to 30% for different income levels.

2. No Deductions and Exemptions:
Taxpayers opting for the new regime forfeit various deductions and exemptions available under the old regime. This includes deductions under Section 80C (such as investments in PPF, EPF, life insurance premiums), Section 80D (health insurance premiums), Section 24 (home loan interest), etc.