A study on optional tax regime: Which one is beneficial for tax payers

Abstract

In India, a new Direct Tax Regime was established in the 2020 Union budget, which will help taxpayer’s more and simplified regulations relating to income tax and tax filing. It is clear from looking at many scenarios that both tax systems have benefits and drawbacks. For Indian taxpayer’s, the adjustments made don’t truly make life simpler. The new tax system is an excellent choice for those who have recently begun working, have a lesser salary and also for people who don’t have lot of money. Investing in someone to lower their tax burden is part of the old tax system. However, everyone should bear in mind that your investment and insurance coverage shouldn’t be chosen based on Tax Regime you choose.