Understanding new and old tax regime
14 videos • 57 views • by Reliance Nippon Life Insurance The new tax regime, which came into effect recently, introduces a revamped structure that aims to simplify the tax system and provide more flexibility to taxpayers. One of the main highlights of the new regime is the lower tax rates, which can result in reduced tax liabilities for many individuals. However, it comes with the condition that you forgo certain exemptions and deductions that were available under the old regime. Speaking of the old tax regime, it followed a more traditional approach with a higher number of tax slabs and various deductions and exemptions. While it provided scope for reducing taxable income through exemptions like House Rent Allowance (HRA), Leave Travel Allowance (LTA), and others, it often led to complex calculations and added administrative burdens. In the new tax regime, taxpayers have the option to choose between the old and new tax systems based on their individual financial situations. It's important to carefully evaluate your income, investments, and deductions to determine which regime works best for you. Some taxpayers may find that sticking to the old regime is more advantageous, while others may benefit from the simplicity and lower rates of the new regime. In this video, we'll dive deeper into the specific changes introduced by the new tax regime and explore how they might affect different categories of taxpayers. We'll also provide practical examples and scenarios to help you make an informed decision when it comes to choosing between the two tax regimes. Stay tuned to our channel for more insightful videos on tax planning, financial management, and updates on the ever-evolving tax landscape. Don't forget to like, comment, and subscribe to receive notifications about our latest content. Let's navigate through the complexities of the new and old tax regimes together!