Income Tax Regime

What Do You Prefer Old Tax Regime or New Tax Regime?

By Ankar Kapuria Published On 09 Sep 2021 Updated On 14 Sep 2021 Category Income Tax Return Filling

With the launch of the new tax regime, a new question has appeared in the mind of the readers. Whether old tax regime or new tax regime, which one is better for the taxpayers? So, as a taxpayer, before going for ITR e filing online, let’s clear the doubts from your mind.

Are you a salaried individual, are you a businessperson, or are you associated with any other profession? You cannot clearly say that the new income tax regime is better than the old one or the old tax regime is better than the new tax regime?

A Brief on The New Tax Regime

The new tax regime offers 6 tax slabs on income up to Rs. 15 lakh. All the individuals and HUF (Hindu Undivided Family) are eligible under the new tax regime. The salaried individuals may have to face a few problems with the new tax regime, for example, HRA (House Rent Allowance) and LTA (Leave Travel Allowance) may not provide as much facility while ITR filing online login. Overall, these are the features of the New Tax Regime.

Positive Aspects of The New Tax Regime

You can check the positive aspects that are associated with the new tax regime.

  1. Tax-related flexibility is associated with the New Tax Regime. The new tax regime is ideal for tax savings schemes and insurance schemes. 
  2. With multiple tax slab facilities,  you have the option of selecting the tax slab as per your income level.

These two are the positive aspects of the new tax regime. The tax-related flexibility will be highly beneficial for the OPC (One Person Company) director after the completion of the OPC company registration.

Have A Look At The Old Tax Regime

As per the experts’ opinion, the old tax regime is complicated. In the old system, the tax rates are also high. Though the tax rates are high, one positive aspect of the old tax regime is that you can have the chance to reduce your tax-related liability.

The Positive Aspects of The Old Tax Regime

Just like the new tax regime, the old tax regime has certainly a few positive features.

  1. With the Old Tax Regime, a person can have 70 tax exemption and deduction options that you cannot have with the new tax regime. While you are going to file an ITR return filing online with the old tax regime, you can have certain benefits like HRA, LTA, and Life Insurance Premium. 
  2. When you think about the tax-free components like LTA, Food bill, and Phone bill; you can select the old tax regime.

When you think about the positive features of the old tax regime, these points will come to your mind.

The Old Tax Regime or The New Tax Regime: Which One Suits You Better

A Comparison of Old Tax Slab and the New Tax Slab

Income Slab

Old Tax Regime

New Tax Regime

Upto 2.5 Lakh

Nil

Nil

2.5 to 5 Lakh

5%

5%

5 to 7.5 Lakh

20%

10%

7.5 to 10 Lakh

20%

15%

10 to 12.5 Lakh

30%

20%

12.5 to 15 Lakh

Nil

25%

15 Lakh and Above

Nil

30%

 

As an Income Taxpayer, the list that is displaying the old income tax slab and new income tax slab can be beneficial for you.

So, the table chart can show you that with the new tax slab, the break or the split has been executed more precisely than the old tax regime. You can check out the tax slab list while searching for how to file ITR online for salaried persons.

Can You Take Support from Online Legal India™ for Identifying The Tax Regime?

In the budget 2020, you may know that the new tax regime has been introduced. So, the situation will be genuine if you become confused about whether to choose the old tax regime or the new tax regime.

You can look at how to file ITR online from Online Legal India™ if you do not know exactly how to execute the online ITR filing work precisely. 

So, be it clearing your confusion regarding selecting the old tax regime or the new tax regime or if you don’t know how to file the Income Tax Return online, you can consult the Online Legal India™.


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