2. New Tax regime under Budget.

Question

Accepted Answer

The new tax regime under Budget is an optional tax system with lower tax rates but without exemptions and deductions.

The new tax regime was introduced in the Budget 2020.
It offers lower tax rates but without exemptions and deductions.
Taxpayers can choose between the old and new tax regimes every year.
The new tax regime is beneficial for taxpayers who do not claim many deductions and exemptions.
The old tax regime is beneficial for taxpayers who claim many deductions and exemptions.
The new tax regime has different tax slabs and rates compared to the old regime.
For example, under the new regime, the tax rate for income between Rs. 5-7.5 lakhs is 10%, while under the old regime, it is 20%.
The new tax regime also has a higher tax rate for income above Rs. 15 lakhs compared to the old regime.
Taxpayers need to calculate their tax liability under both regimes and choose the one that is more beneficial for them.

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