Income Tax Regime: The government has not formally announced that the previous tax structure will be eliminated. But there are already a lot of people talking about it.
Income Tax Regime: On February 1, 2025, Finance Minister Nirmala Sitharaman will deliver the budget. Prior to this, there is debate over whether the government would do away with the previous tax structure. Let us inform you that the new tax structure was implemented on February 1, 2020, as part of the general budget. In contrast to the new tax regime, which has low tax rates but few deductions and exemptions, the old tax regime offered a wide variety of deductions and exemptions, which is why many preferred it.
The government wants to make the income tax system simpler.
Because the new tax system is easier to understand than the previous one, taxpayers are predicting that the government would eliminate the old one after the Finance Minister recently stated that the government aims to streamline the income tax system. Under Section 80C of the Income Tax Act, investments up to Rs 1.5 lakh were free from taxes under the previous tax structure. In a similar vein, Section 80D provides an exemption from paying health insurance premiums, allowing taxpayers to deduct both their own and their family’s premiums. This lowers the amount of taxable income.
The government wants to make the income tax system simpler.
Because the new tax system is easier to understand than the previous one, taxpayers are predicting that the government would eliminate the old one after the Finance Minister recently stated that the government aims to streamline the income tax system. Under Section 80C of the Income Tax Act, investments up to Rs 1.5 lakh were free from taxes under the previous tax structure. In a similar vein, Section 80D provides an exemption from paying health insurance premiums, allowing taxpayers to deduct both their own and their family’s premiums. This lowers the amount of taxable income.
