With the latest budget changes, the New Tax Regime has become the default. Should you opt-out? We analyze the math.
The Finance Act has introduced significant changes to the tax slabs under the New Regime. For individuals with total income up to 7 lakhs, no tax is payable. However, those with significant investments under 80C, high HRA, or home loans might still find the Old Regime beneficial. We've performed several comparative analyses for our clients showing that once your income crosses the 15-lakh mark, the New Regime often wins unless your total deductions exceed 3.75 lakhs.