Old Vs New Tax Regime After Proposed Hike in Basic Tax Exemption Limit in Budget: Which will be better for individuals earning Rs 10 lakh?

Category: Finance

Taxpayers are anticipating an increase in basic tax exemption limits in the upcoming budget, which could impact the choice between the old and new tax regimes. The old regime offers more deductions, while the new regime provides lower tax slab rates and a standard deduction. A comparison of tax liabilities for an individual earning Rs 10 lakh suggests that the new regime may be more advantageous if the exemption limit is raised to Rs 5 lakh, but individual circumstances must be considered.

Keywords: Tax Regime, Budget 2024, Tax Exemption

Source: The Financial Express

Update At: 7/23/2024

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