The Old Tax Regime refers to India's traditional income tax structure, characterized by various deductions and exemptions available under sections like 80C,...
The Old Tax Regime is India's traditional income tax system allowing taxpayers to claim various deductions (e.g., Section 80C, 80D) and exemptions (e.g., HRA, LTA) to reduce their taxable income, typically with higher slab rates than the new regime.
Its primary benefit is the availability of numerous deductions and exemptions, which can significantly lower an individual's tax liability if they utilize these options through investments, savings, and specific expenses like medical insurance or home loan interest.
The Old Tax Regime offers deductions and exemptions with higher tax slab rates, while the New Tax Regime provides lower tax slab rates but eliminates most deductions and exemptions, simplifying the tax calculation process.
Yes, individual taxpayers can still opt for the Old Tax Regime. For salaried individuals, this choice is typically made at the beginning of the financial year and can often be switched annually during tax filing.