Making the Right Tax Regime Choice
The introduction of the new tax regime has left many Indian taxpayers confused about which option is better for them. Let's break it down.
New Tax Regime (Default from FY 2023-24)
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Key Feature: Standard deduction of ₹75,000 and rebate up to ₹7 lakhs income.
Old Tax Regime
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Key Feature: All deductions and exemptions available.
When is Old Regime Better?
The old regime is typically better if your total deductions exceed ₹3.75 lakhs, including:
When is New Regime Better?
Choose the new regime if:
Key Considerations for Salaried Professionals
Living in metro or tier-2 cities often means:
Practical Example
Salaried professional earning ₹20 LPA:
Old Regime Tax (with deductions of ₹4.5 lakhs): ~₹2.34 lakhs
New Regime Tax: ~₹2.70 lakhs
Savings with Old Regime: ₹36,000
Our Recommendation
There's no one-size-fits-all answer. At Ritik Jindal & Associates, we analyze your complete financial profile to recommend the optimal regime. Our clients across India typically save ₹30,000 - ₹2,00,000 annually through proper regime selection.