New income tax regime: Does the option of lower tax rates work for you?5 min read . Updated: 08 May 2022, 07:46 AM IST
As far as salaried are concerned they are not entitled to avail major benefits like Standard Deduction, House Rent Allowance, Leave Travel Assistance etc. in case they opt for the new tax regime.
There are lots of confusion about new tax regime. People are not able to decide which one to opt for. The new tax regime is available only to Individuals as well as to an HUF whether you are a resident or a non-resident and is optional. The new tax regime offers you concessional rates upto total taxable income of Rs. 15 lakhs with tax slabs of 5%, 10%, 15%, 20% and 25% on the income slabs advancing by 2.50 lakhs starting from the basic exemption of Rs. 2.50 lakhs. In case one wishes to avail the benefits of reduced tax slab rates under the new tax regime in place of existing tax slabs, one has to forgo various tax deductions and exemptions available under old tax regime.