Old Income Tax Regime: Big blow for taxpayers! Old Tax Slab system may be abolished, Revenue Secretary suggested

Old Income Tax Regime: In the midst of rising inflation, the government is preparing to give a big blow to the taxpayers. 

The government can abolish the old tax system, in which 70 types of exemption are available. Revenue Secretary Tarun Bajaj has proposed this.

Old Income Tax Regime: Rising inflation has broken the back of people. Meanwhile, the government is preparing to give another big blow to the taxpayers.

The government can abolish the old tax system in which 70 types of exemption are available. Actually, Revenue Secretary Tarun Bajaj has made this proposal to increase the attraction of people towards the new tax system.

Tarun Bajaj offered

It is worth noting that even after the introduction of the new tax system, people are more attracted towards the old system of income tax. In such a situation, people are ignoring the new tax system. Tarun Bajaj has made this proposal with the aim of encouraging taxpayers to adopt the new system of income tax.

Entry of new tax slabs in 2020-21 

It is worth noting that the new system of income tax was started in 2020. In this the tax rate is low but, the facility of deduction is not available.

In such a situation, less interest is being shown due to lack of exemption in taxpayers. Still, most of the taxpayers file their income tax returns with the old tax regime.

Why people don’t choose new slab

Tarun Bajaj said, ‘People do not want to use the new system because of this. Therefore, unless we reduce the attractiveness of the old system, people will not come to adopt the new system. Unless we do this, we will not be able to ease our tax rate.

new tax slab

• No tax is to be paid in the new income tax slab up to 5 lakhs.
• Between 5 lakh to 7.5 lakh, now only 10% tax has to be paid.
• If your income from 7.5 lakhs to 10 lakhs, now you have to pay 15% tax.
• If your income is from Rs 10 lakh to Rs 12.50 lakh, then according to the new slab, 20% tax has to be paid and those earning Rs 12.5 lakh to 15 lakh every year now have to pay 25% tax.
• On income above 15 lakhs, 30% tax remains as before.