A Critical Analysis Of Old Tax Regime And New Tax Regime In India
- IJLLR Journal
- 7 hours ago
- 1 min read
Dr. Ghazala Abidin, Associate Professor, School of Law, Manav Rachna University, Faridabad.
Mr. Vaibhav Shahi, School of Law, Delhi Metropolitan Education, Noida (Affiliated to Guru Gobind Singh Indraprastha University, Delhi)
ABSTRACT
This research presents comparative analysis of India’s old and new tax regimes for the financial year 2024-2025, delineating their respective structures, tax rates, and implications for taxpayers. With introduction of new tax regime in the year 2020-2021, offering simplified tax brackets and reduced rates at the cost of foregoing most deductions and exemptions, taxpayers are now faced with a critical decision. The analysis encompasses a detailed exploration of both tax systems, emphasizing the differences in tax liabilities across various income groups through illustrative examples and comprehensive tables. The paper examines key considerations influencing the choice between the regimes, including financial goals, available deductions, and the impact on different demographic segments such as salaried employees, freelancers and senior citizens. Expert opinions and tax planning strategies are also discussed to guide taxpayers in making informed decisions. The findings highlight the importance of personalized financial advice in navigating these changes, aiming to equip readers with the necessary information to optimize their tax obligations under the evolving Indian tax framework.
Keywords: Financial planning, Income tax brackets, New tax regime, Old tax regime, Tax deductions, Tax exemptions, Tax liability, Tax rates
