{"id":7048,"date":"2020-02-12T05:34:10","date_gmt":"2020-02-12T05:34:10","guid":{"rendered":"\/blog\/?p=7048"},"modified":"2020-04-15T05:30:50","modified_gmt":"2020-04-15T05:30:50","slug":"old-tax-regime-vs-new-tax-regime-which-one-should-you-opt-for","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/rbi-regulations\/old-tax-regime-vs-new-tax-regime-which-one-should-you-opt-for\/","title":{"rendered":"Old Tax Regime Vs New Tax Regime \u2013 Which One Should You Opt For?"},"content":{"rendered":"\n<p>There are many taxpayers in our country who\nare currently availing of various exemptions and deductions under the Income\nTax Act, 1961. <\/p>\n\n\n\n<p>The crucial difference between the old tax\nregime and the new one is that the taxpayers who avail of the new tax slabs\nwill not be eligible for any rebates or exemptions anymore. <\/p>\n\n\n\n<p><strong>The tax\nslabs under the old regime are as follows:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>No taxation if a taxpayer\u2019s annual income is below Rs.2.5\nlakhs<\/li><li>Annual incomes between Rs.2.5 lakhs and Rs.5\nlakhs will be charged at 5%<\/li><li>For an annual income between Rs.5 lakhs and\nRs.10 lakhs, an individual will have to pay 20% as tax<\/li><li>If an individual\u2019s annual income exceeds\nRs.10 lakhs, a rate of 30% will be charged<\/li><\/ul>\n\n\n\n<p><strong>Under the new tax regime,\nhere are the tax slabs that a taxpayer will have to contend with:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>There will be no taxation if a taxpayer\u2019s annual income is\nbelow Rs.2.5 lakhs<\/li><li>If the annual income is between Rs.2.5 lakhs and Rs.5 lakhs, a\ntaxpayer will have to pay 5% as tax<\/li><li>Annual incomes between Rs.5 lakhs and Rs.7.5 lakhs will be\ntaxed at 10%<\/li><li>For individuals earning an annual income of Rs.7.5 lakhs to Rs.10\nlakhs, the chargeable tax will be 15%<\/li><li>A taxpayer will have to pay 20% tax if his\/her annual income\nis between Rs.10 lakhs to Rs.12.5 lakhs <\/li><li>The tax will go up to 25% if a taxpayer\u2019s annual income is\nbetween Rs.12.5 lakhs and Rs.15 lakhs<\/li><li>The highest tax slab under the new tax regime is 30% for\nindividuals earning an annual income of Rs.15 lakhs or more<\/li><\/ul>\n\n\n\n<p><strong>Additional Reads<\/strong>:- <a title=\"Budget 2020: Key Highlights and Takeaways\" href=\"https:\/\/tata-blog.osian.dev\/blog\/government-regulations\/budget-2020-key-highlights-and-takeaways\/\">Budget 2020: Key Highlights and Takeaways<\/a> <\/p>\n\n\n\n<p><strong>Old Tax Regime Vs New Tax Regime \u2013 Which one\nshould you opt for?<\/strong><\/p>\n\n\n\n<p>Choosing between the old and new tax regime\nis a very personal choice that depends primarily on one factor more than all\nthe others \u2013 tax benefits. At first glance, the lower tax rates under the new\nregime should ideally equate to lower tax. However, this may not be the case\nfor all. The reason is that people opting for the new regime will have to forgo\nall the existing tax benefits that they are claiming.<\/p>\n\n\n\n<p>In the end, you will have to make some\ncalculations and determine whether it is more profitable for you to claim the\nvarious tax deductions and exemptions by sticking to the old regime or to miss\nout on them and avail a lower interest rate under the new regime.<\/p>\n\n\n\n<p><strong>Additional Read<\/strong>:- <a title=\"What can tax payers expect from budget 2020?\" href=\"https:\/\/tata-blog.osian.dev\/blog\/trends\/what-can-taxpayers-expect-from-budget-2020\/\">What can tax payers expect from budget 2020?<\/a> <\/p>\n\n\n\n<p><strong>Conclusion<\/strong><\/p>\n\n\n\n<p>Ultimately, the fact is that you will have to plan, calculate\nand assess whether you should shift to the new tax regime or continue with the\nold regime. Choose the option that helps you save more money in the long run.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There are many taxpayers in our country who are currently availing of various exemptions and deductions under the Income Tax Act, 1961. <\/p>\n<p><a href=\"https:\/\/tata-blog.osian.dev\/blog\/government-regulations\/old-tax-regime-vs-new-tax-regime-which-one-should-you-opt-for\/\">Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":7049,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[39],"tags":[],"class_list":["post-7048","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-rbi-regulations"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.13 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Old Tax Regime Vs New Tax Regime \u2013 Which one should you opt for?<\/title>\n<meta name=\"description\" content=\"The major difference between the old tax regime and new tax regime is that the taxpayers availing for new tax regime won&#039;t be eligibile for rebates or exemptions. 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