JJEM: Special Edition 3 (January 2025)
JJEM: Special Edition 3 (January 2025)
2025-01-20
A Comparative Study of New Tax Regime with Old Tax Regime
Balaswamy
Income tax is a significant direct source of revenue for the government. The Income Tax Act of 1961's regulations have been followed in the administration of the income tax system in India. The government has made numerous revisions to these income tax act rules as needed in the interest of both administrative machinery, and tax payers. As a part such amendment, the union budget 2020 introduced a new tax regime by slashing income tax rates and rearranging the income tax slabs to lower tax liability for tax payers. From financial year 2020-21 on words, an iindividual who pay taxes has been given choice to choose between new tax regime and old tax regime which is beneficial from point of view of tax liability. Any individual tax payer who chooses to use the new tax regime will have to give up certain exemptions and deductions provided by previous one. But the tax payers have confusion about tax regime which will provide benefits to them at the time of paying tax. However, it is advisable to do a comparative evaluation and analysis under both regimes and then choose the most beneficial one. The present paper is an attempt to study the comparison of new tax regime with old tax regime focused on salaried tax payers in Shivamogga District, and recent reforms undertaken at the end, there are suggestions made to the government in the interest of tax payers.
Comparison, Tax payers, Tax regime, Exemptions, Deductions, Financial year.