Union Budget 2025, Feb. 1 -- Is the govt planning to phase out the old regime? Nirmala Sitharaman has proposed to introduce the new income tax law in Budget 2025. With this, the rumours of phasing out the old regime have reviewed.

As we know the new tax regime offers concessional tax rates but does not offer deductions that are given in the old tax regime.

As of now, one can claim deduction upto Rs.1.5 lakh for investments made under different sections. In 2020, government had introduced the new tax regime and in 2023, it became the default regime.

However, taxpayers can opt for the old regime if they believe that this will lead to lower tax outgo.

When the old tax regime is phased out, taxpayers will have little or no incentive to ma...