An Analysis of Old Tax Regime and New Tax Regime for Individual Taxpayers in India

ABSTRACT The personal income tax system in India has undergone major changes with the introduction of the New Tax Regime. Unlike the traditional Old Tax Regime, which allows multiple exemptions and deductions, the New Tax Regime offers reduced tax rates with limited tax benefits. This research paper examines the key differences between the two regimes and evaluates their impact on salaried taxpayers. The study focuses on tax liability, ease of compliance, and taxpayer preference. The findings suggest that while the New Tax Regime simplifies taxation, the Old Tax Regime remains more advantageous for individuals who engage in tax planning through savings and investments. Keywords: Income Tax, Old Tax Regime, New Tax Regime, Salaried Taxpayers, Tax Planning