2 tax regimes after Budget: Which one to choose if you claim exemptions

Experts say paying tax has now become very person-specific. Each taxpayer will have to study the situation and decide whether to opt for the new regime or not

Two tax regimes will now exist simultaneously after the Budget 2021 gave taxpayers a choice. There is the old one, which comes with higher tax rates (at several levels of income) but also offers a host of exemptions and deductions. And there is the new regime introduced by the finance minister, where the rates will be lower for many people, but taxpayers will not be able to avail of any deductions or exemptions.

 

Experts say the tax regime has now become very taxpayer-specific. Each taxpayer