New vs Old Income Tax Regime: Which one should you pick? | Budget 2023 | Personal Finance

Income tax is complex, and understanding it can sometimes make your head spin! The Indian tax regime underwent a significant change in 2020 with the introduction of a new tax regime. The new tax regime comes with a lower tax rate and a simplified tax structure, making it an attractive option for taxpayers. However, the old tax regime still exists, and taxpayers can choose between the two tax regimes. In this video, we will discuss the new and old tax regimes in India, their features, and which one you should pick. The old tax regime follows the existing tax structure, with various tax exemptions and deductions available to taxpayers. In contrast, the new tax regime offers lower tax rates but comes with a reduced number of exemptions and deductions. The new tax regime has been introduced to simplify the tax structure and reduce the compliance burden on taxpayers. Choosing between the new and old tax regime depends on individual tax planning and preference. If you have a significant amount of tax-saving investments, you may benefit more from the old tax regime, as it offers more deductions and exemptions. On the other hand, if you do not have many investments or are looking for a simplified tax structure, the new tax regime may be a better option. This episode of Explain Like I'm 5 explains how tax regimes work and what you may consider to pick out the regime most suited for you. Want to compare your tax liability under different tax regimes? Check out the BankBazaar Income Tax Calculator - https://bit.ly/taxcalculator2024 #taxregime #oldtaxregime #newtaxregime #incometax #taxes Read more here - https://www.bankbazaar.com/tax/income...