The Indian taxation system has undergone several reforms aimed at improving transparency, compliance, and administrative efficiency. One of the major reforms was the introduction of the New Tax Regime (NTR) under Section 115BAC through the Finance Act 2020. The new regime offers reduced tax rates but eliminates many exemptions and deductions available under the Old Tax Regime (OTR). This study evaluates the comparative benefits and limitations of both regimes for individual taxpayers. The research is based on secondary data from government publications, academic literature, and tax policy documents. The findings suggest that the New Tax Regime is advantageous for individuals with minimal deductions and simple salary structures, whereas the Old Tax Regime continues to benefit taxpayers who utilize tax-saving investments and deductions. The study provides insights that can help individuals make informed decisions regarding their tax planning strategies.
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