New Delhi, April 27 -- There are numerous advantages to opt for the new tax regime over old tax regime. One of the key reasons is the tax rates, which are lower in comparison to the old tax regime. Highest tax rate under the new tax regime is 30 percent for those who earn above Rs.15 lakh (for FY 2024-25). For those who earn between Rs.12 to 15 lakh, tax rate is 20 percent, whereas those earning between Rs.10 to 12 lakh, tax rate is 15 percent.

While announcing these changes, Union Finance Minister Nirmala Sitharaman on July 23, 2024 said that the salaried employee will stand to save up to Rs. 17,500 in income tax under the new regime. In contrast, under the old regime - 30 percent tax rate kicks in when the income crosses Rs.10 lakh in ...