The changes to the new tax regime announced in Budget 2023, made it extremely attractive for the salaried class. However, while the tax rate is lower, the new tax regime does not offer any of the other tax saving deductions that could be claimed in the old regime.
The big question on everyone's mind is how does one decide which regime is most beneficial? In this episode of Invest Smart, Editorji's Avni Raja and Finance Educator, Kanan Bahl break it down for you and tell you how to make that decision.
Remember, the new tax regime is the default regime. This means, if you do not make your choice clear, the new regime will automatically apply to you.
So, it's extremely important to assess your income and your investments, calculate your taxable income and then decide which regime is more beneficial to you.