Old or New Regime in ITR

Why new regime is not so ideal for you?

Yes we all know about no tax for people below 7lac income, but here are some facts that might open your eves about new regime:

Their is no tax for income under 7 lacs but what if vour income is more than 7 lacs, should you still opt for new regime? It depends on you! But we don't think it will be a wise option because there are no exemptions allowed to take your income down under 7 lacs. So it's sort of flat tax slab, and if you're earning more than 7 lacs you'll have to pay as per tax slab i.e

3-6lacs 5% , 6-9lacs 10% and so on.

With old regime even by taking basic exemptions like 80C, HRA, NPF and ELSS your income will automatically fall under 5lacs and you pay no tax. Plus you also have other deductions if you fall in more higher income.

If you're a businessman/freelancer in new regime you'll have to pay flat tax and it can't be even reversed once you opt new regime.

So why is govt even introducing new regime?

Primarily to boost economy, but how? In order to claim those deductions in old regime you've to invest your money. But if you've income below 7 lacs, with new regime you get to keep all your money to yourself and guess who's addicted to swiggy zomato and 100s of expenses. So when you spend more you make govt rich by paying tax on every expenses (gst).

Businesses sales are boosted and economy too get's better with time.

While you can still opt to choose new regime if your income is below 7lacs and invest monev as ver vour will and not for deductions to earn higher returns.

*Note: Since it's been very less time new regime been announced, in coming time there may be more added info. So please research yourself and sit down with your CA or Advocate or Tax Consultant to see which is best suited regime for you*