Old tax regime still works for high earners

Those with annual salary of more than ₹25 lakh and deductions of ₹8.5 lakh should stick to old regime

- BENN KOCHUVEEDAN @Mumbai

AS taxpayers it is natural to expect some positive tweaks to the direct tax regime in the Budget.

That, however, appears unlikely this year, given massive hike in income tax exemptions in the last Budget, along with the much-delayed correction in GST rates.

This column is not about tax cuts in the February 1 Budget, but which tax regime to choose in the next fiscal. While the old regime offers a slew of deductions, new regime offers none. New regime is the default option and, once chosen, becomes irreversible in certain cases.

Though the new regime has made slabs more attractive and compliance simpler by removing exemptions and deductions, why do nearly a third of taxpayers still opt for the old regime?