Tax benefits on old tax regime
@bala41288
Posted 1d ago · 2 min read
Every year budget is introducing many new things making it good for both old tax regime people and new tax regime people. But ultimately government wants people to switch to new tax regime because everything is simplified and filing taxes is also made easier. There will always be people who won't appreciate this two tax regimes. Good thing about two tax regimes is that one benefits some people and the other benefits the other set of people. It all depends on the salary they earn and how many things they have to show and get tax reduction.
I'm still in the old tax regime as I have my home loan going on. That's one of th primary reasons why I wanted to stay in old tax regime itself. I can go for the new tax regime but the old one benefits because I have so many other declarations that I can make. My office is giving some flexible benefits that help in reducing my tax. I used to have 39500 as my fuel allowance and now it has increased to 84000 and I also have the benefit of food vouchers for about 105000 which is again another huge value. Children's education allowance also now gives 72000 tax exemption. So this is a good thing overall.
People who are paying their income tax in the old tax regime have multiple ways in which their tax declarations can be made and avail tax reductions. I was wondering why the government is giving more perks to the old tax regime people even though they are supporting people who move to the new tax regime. I'm not still clear on that part. But overall I'm glad that the old tax regime benefits have also increased making it tough for people to decide and move from old to new tax regime. For me old is still good for me so I wouldn't think about moving to the new tax regime anytime soon.
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