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New income tax slabs: Will you gain by switching to new regime?

Some taxpayers were expecting the income tax slabs to be widened. Others were hoping the exemptions and deductions would be increased. Everybody wanted the tax structure to be simplified and their tax to come down. Budget 2020 dashed a lot of these hopes. While it has indeed widened the income tax slabs and reduced the tax rates, taxpayers who opt for the new regime will have to forego most of the exemptions and deductions that taxpayers avail of.
Choose between old and new
To be fair, taxpayers will have the option to switch to the new tax structure. “This is a good move because taxpayers will be able to make the choice depending on their financial situation,” says Sudhir Kaushik, Co-founder of Taxspanner. “Taxpayers who avail several exemptions and deductions such as house rent allowance and Section 80C deductions may not benefit from switching to the new system,” says Amit Maheshwari, India Tax Leader at Ashok Maheshwary & Associates.
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