Budget 2024: Will the Old Tax Regime be discontinued from next year? know here...
People were expecting that some big changes would be seen regarding the tax slab in Budget 2024. Finance Minister Nirmala Sitharaman has stated the old tax system after presenting the Union Budget 2024 in Parliament on Tuesday afternoon.
When will the old tax regime end?
Nirmala Sitharaman said that no decision can be taken on whether the old tax system will end or not. I can only say that the intention is to simplify the tax system. Earlier today, the Finance Minister announced changes in the new tax system, including raising the standard deduction from Rs 50,000 to Rs 75,000 and also increasing the tax slab.
How different from the new tax regime?
The old tax system offers several deductions and exemptions for individuals, including house rent and leaves travel allowance, as well as deductions under sections 80C, 80D, 80CCD (1B), and 80CCD (2). However, these exemptions and deductions are not available in the new tax regime.
However, the tax rates are lower in the new tax regime, but the deductions and exemptions are less. In the old system, the tax rates are higher, but various deductions are allowed to reduce the taxable income. Let us tell you that no change has been announced in the old tax regime.
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