New Delhi, Dec. 25 -- When the new tax regime was first introduced in the Union Budget 2020-21, it did not attract many takers that fiscal year.

This new optional tax regime offered taxpayers lower tax rates in exchange for foregoing most tax deductions and exemptions under the then-prevailing old tax regime. Its newness and the fact that the old regime still remained more attractive for most people made the shift infeasible.

However, the government brought in changes to make the new regime more attractive, encouraging more people to adopt it. It became the default tax regime from 1 April 2023.

Among the key changes that take effect from 2025-26 are: zero-tax liability for those with business and professional income of up to Rs.12 lakh...