The new tax regime shall be optional for the taxpayers. An individual who is currently availing more deductions & exemption under the Income Tax Act may choose to avail them and continue to pay tax in the old regime. The new personal income tax rates will entail estimated revenue forgone of ` 40,000 crores per year. We have also initiated measures to prefill the income tax return so that an individual who opts for the new regime would need no assistance from an expert to file his return and pay income tax.
In the case of every individual, being a resident in India, who is of the age of eighty years or more at any time during the previous year,—
- Upto Rs. 5,00,000 Nil.
- Rs. 5,00,001 to Rs. 10,00,000 20 per cent.
- Above Rs 10,00,000 30 per cent.
In the new tax regime, the substantial tax benefit will accrue to a taxpayer depending upon exemptions and deductions claimed by him.
|Taxable Income Slab (`)||Existing Tax Rates||New Tax Rates|
|Above 15 Lakh||30%||30%|