This move was aimed at simplifying the tax structure and providing taxpayers with more flexibility.

India's income tax system offers two regimes: old and new. – Introduced in Union Budget 2020 to simplify tax structure.

Old Regime Tax Slabs – Up to ₹2.5 lakh: Nil – ₹2.5 lakh to ₹5 lakh: 5% – ₹5 lakh to ₹10 lakh: 20% – Above ₹10 lakh: 30%

Title 2New Regime Tax Slabs – Up to ₹2.5 lakh: Nil – ₹2.5 lakh to ₹5 lakh: 5% – ₹5 lakh to ₹7.5 lakh: 10% – ₹7.5 lakh to ₹10 lakh: 15% – ₹10 lakh to ₹12.5 lakh: 20% – ₹12.5 lakh to ₹15 lakh: 25% – Above ₹15 lakh: 30%

Old Regime Benefits – Standard deduction: ₹50,000 – Section 80C deductions: up to ₹1.5 lakh – Section 80D health insurance premiums – HRA and LTA exemptions – Home loan interest deduction

New Regime Simplicity – No standard deduction – No deductions under sections 80C, 80D, etc. – No HRA and LTA exemptions – No home loan interest deduction (self-occupied)

Who Should Opt for Which? – Old Regime: Beneficial for those with substantial exemptions and deductions. – New Regime: Suitable for those preferring simplicity and having fewer deductions.

Evaluate your financial situation: income, expenses, investments. – Use online calculators or consult a tax advisor. – Choose the regime that aligns with your financial goals.