Union Funds 2025: Is the government planning to part out the outdated regime? Nirmala Sitharaman has proposed to introduce the brand new earnings tax legislation in Budget 2025. With this, the rumours of phasing out the outdated regime have reviewed.
As we all know the new tax regime affords concessional tax charges however doesn’t provide deductions which can be given within the outdated tax regime.
As of now, one can declare deduction upto ₹1.5 lakh for investments made underneath totally different sections. In 2020, authorities had launched the brand new tax regime and in 2023, it grew to become the default regime.
Nevertheless, taxpayers can go for the outdated regime in the event that they consider that it will result in decrease tax outgo.
When the outdated tax regime is phased out, taxpayers may have little or no incentive to make funding in small invesment schemes akin to PPF, NSC and SSY, amongst others.
