The Budget of 2020 brought quite a few changes to our tax system. The most prominent change was the introduction of the New Tax Regime. However, this New Tax System was optional. But, many taxpayers were still confused as to which system they should follow.
The Central government introduced a new personal income tax regime for the taxpayers in the Union Budget 2020. On one side, this new system comes with lower slab rates, and on the other, it eradicates particular deductions and claims. The other point regarding this new tax regime is that it’s optional. This proposes that you do not need to forcibly select this system of taxation. You can choose to continue with the old method, in which you can claim all the accessible deductions and exemptions amalgamated with tax-saving investments.