CAJayprakash Pandey
Quick Summary
The concept of OLD Vs New Tax regime = a dual tax regime was introduced by Finance Act- 2020 for FY 2020-21. For FY 2020-21 corresponding to AY 2021-22, there is a Dual Tax regime as discussed in the one of the article shared with you for TAX SAVINGS TIPS. Summary of Points discussed in th
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FAQ :
The dual tax regime was introduced by the Finance Act 2020 for FY 2020-21.
The new tax regime has fewer tax slab rates (6) compared to the old regime (more than 6), but the new regime offers fewer exemptions and deductions like HRA, LTA, and Section 80C investments.
No, generally you cannot claim most deductions under Chapter VI A, including Section 80C investments, HRA, LTA, and housing loan interest, if you opt for the new tax regime.
If you plan to claim deductions exceeding approximately Rs 2.5 lakh, such as those under Section 80C, 80D, or housing loan interest, you are likely better off under the old tax regime.
No, taxpayers have the flexibility to choose between the old and new tax regimes at the time of filing their income tax returns.
You should evaluate your expected deductions and exemptions and use an online income tax calculator to compare your tax liability under both regimes.
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