There is hardly any scope of tax saving in new tax regime once income goes above Rs 7.5 lakh. So, most taxpayers will be interested to know the minimum amount of deduction they require under the old tax regime to match the total tax liability under the new tax regime. If you are able to claim higher deductions than this then your income tax savings will be higher in the old tax regime.

Income tax slab: The Finance Minister has announced changes in the income tax slabs under the new tax regime. The changes announced in the income tax slabs under the new tax regime would be applicable for incomes earned under in the FY 2023-24, starting from April 1, 2023. Know what are the new income tax slabs under the new tax regime from FY 2023-24 and how they are different from existing ones.

87a Rebate: To make the new tax regime more attractive, the rebate under Section 87A has been hiked to Rs 25,000 for taxable income up to Rs 7 lakh. Thus, an individual opting for the new tax regime in FY 2023-24 will pay zero taxes if their taxable income does not exceed Rs 7 lakh.

The answer will depend on two factors: income level and eligible deduction level. Let us understand how the tax liability and tax savings dynamics change depending on the income levels and deduction scenarios. If your income and expense pattern makes you eligible for many widely used tax deductions then you can still achieve nil tax liability under the old tax regime.

To make the new income tax regime more attractive, the Budget 2023 has announced certain deductions that will be available from FY 2023-24. The deductions mentioned here include all the ones that are recently introduced as well as those that were previously available. Read on to know more about three deductions that one can claim under the new tax regime.

As per budget 2023 proposal if you invest in any non-linked saving policy of a life insurance company in the next financial year, the maturity proceeds will not be completely exempted from tax if the policy has a premium of more than Rs 5 lakh a year. There is limited window left for such investments.

Irrespective of whether you have already bought a home or are living on rent but planning to buy a house, there is a good likelihood that you would be better off with the old tax regime. People who have a significant amount of expenses and investments that are eligible for deductions will be better off with the old tax regime if these deductions taken together offer higher tax savings.

Here's a list of the main exemptions and deductions that taxpayers will have to forgo if they opt for the new regime.

Unless an individual specifies that he/she is opting for the old income tax regime, then the revised new income tax regime will be applicable. So, will the benefit of switching between old and new income tax regime continue?