New Tax Regime vs Old Tax Regime: A Comprehensive Comparison

Tax Time Got You Stressed? New vs Old Regimes - Simplified!

So, you're staring down the tax beast again... Don't worry, you're not alone! This year, the big debate is: New Tax Regime vs. Old Tax Regime?

Let's break it down, shall we?

Old School Perks:

• You get to tell your employer to use the OLD way to calculate your taxes (because adulting, right?)
• Fewer tax brackets (think 4 vs 6) which MIGHT save you some moolah!

New School Benefits:

• Tax Rebate Alert! You can get up to ?1,000 back - free money is ALWAYS good!
• Tax-Free Zone! Up to ?2.5 Lakhs is completely tax-free under the new regime.

The Tax Calculation Showdown:

Imagine you earn between ?5 Lakhs and ?10 Lakhs. The old regime might be your friend. But for someone earning around ?7 Lakhs, the new regime could be a win! Every situation is different!

Deductions Showdown: Old vs New!

Old Regime: Think standard deduction of ?5 Lakhs PLUS sweet deductions for things like PPF and health insurance (think tax-saving ninjas!).

New Regime: Hold on! The deductions here are a bit stricter. But hey, there's still a standard deduction and some employer benefits!

The Surcharge Surprise!

This is an extra tax you pay on top of your regular tax. The new regime boasts a lower surcharge (25%) compared to the old one (37%). But wait, there's more! The way it's calculated in the new regime can benefit high earners.

The Takeaway? Knowledge is Power!

Understanding both regimes is key to maximizing your tax benefits. Do your research, consider your finances, and pick the regime that works best for YOU!

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