New Delhi, July 29 -- There is some leeway in selecting a tax regime thanks to the Income Tax Department. Lower tax rates and a more straightforward tax structure were the goals of the 2020 tax reform. But in the process of simplifying things, many of the exemptions and deductions from the previous system had to be removed. The government justified this move by claiming that it would reduce taxpayers' tax burden and therefore increase their disposable income.

A person's annual tax regime can alternate between the previous and new one if they have non-business income. However, people who earn a living from a business or profession are not eligible for this option. You cannot go back to the previous tax system once you decide to opt out of...