Lagatar24 Desk
New Delhi: The fate of India’s old tax regime remains uncertain as Finance Minister Nirmala Sitharaman announced no definitive plans to scrap it following the presentation of the 2024 Union Budget in Parliament. Addressing queries on Tuesday afternoon, she emphasized that while the intention is to simplify the tax system, no timeline has been set for discontinuing the old regime.
“Can’t take a call on whether the old tax regime will be done away with… can only say the intention is to make the tax regime simpler,” Sitharaman stated. “Can’t say if there will be a sunset on the old regime.”
Key Changes in the New Tax Regime
The Finance Minister unveiled several modifications to the new tax regime, including:
- Standard Deduction: Increased from Rs 50,000 to Rs 75,000.
- Tax Slabs: Expanded without altering the tax rates.
These adjustments aim to provide relief to salaried taxpayers, potentially saving them up to Rs 17,500 annually.
Comparison of Old and New Tax Regimes
- New Tax Regime (Introduced in 2020):
- Lower tax rates
- Fewer deductions and exemptions
- Made the default regime in the previous year’s budget
- Old Tax Regime:
- Higher tax rates
- Allows multiple deductions and exemptions such as house rent, leave travel allowances, and deductions under Sections 80C, 80D, 80CCD(1b), and 80CCD(2)
- Various basic income exemption limits based on the taxpayer’s age
Despite the enhancements in the new regime, no changes were announced for the old regime in the latest budget.
