Paper Details

With a focus on salaried individuals specifically, this study offers a thorough comparison of the old and new tax systems under the Income Tax Act of 1961. The study's objectives are to study the variables influencing tax regime selection and evaluate the effects of that regime on tax liability, savings, and financial planning for salaried individuals. A review of recent tax landscape changes, especially those included in the 2024 Budget, is given at the outset of the research. The study looks at the steps the government is taking to encourage people to switch to the new tax system while allowing them to keep their options open. To make the new regime more enticing, significant changes are highlighted, including raised tax rebate limits, modified tax slabs, and increased surcharge rates. Pros and cons of both tax regimes are thoroughly compared, with special attention paid to tax slabs, standard deductions, exemptions, and deductions, as well as HRA, other allowances, and the effects on investments and savings. A comprehensive comparison table outlining the difference between the previous and current tax systems is included in the paper's conclusion.

Income Tax Act, 1961, Old tax regime, New tax regime, Salaried individuals, Budget 2024 Tax System.