Old vs New Tax Regime: Which Works Best Based on Your Deductions?

Since the Union Budget 2020, Indian taxpayers have faced a crucial choice: should you opt for the old tax regime with its wide range of exemptions and deductions, or Opt for the new tax regime offering simplified lower slab rates but fewer deductions?

The Finance Ministry introduced the new income tax regime with the goal of simplifying compliance and offering reduced tax rates. However, this came at the cost of giving up popular tax deductions such as Section 80C, House Rent Allowance (HRA), home loan interest deductions, and medical insurance premiums under Section 80D.