OLD v/s NEW TAX In India, income tax is a mandatory tax levied on individuals, Hindu Undivided Families (HUFs), companies, firms, and other entities that earn income. The government of India has introduced two income tax schemes for taxpayers, namely the old tax scheme and the new tax scheme. In this blog, we will discuss both schemes in detail. Old Tax Scheme: The old tax scheme, also known as the existing tax regime, is the traditional method of calculating and paying taxes. Under this scheme, the taxpayer can claim several tax deductions and exemptions available under various sections of the Income Tax Act, 1961. For instance, deductions are allowed for investments in specified instruments like Public Provident Fund (PPF), National Savings Certificate (NSC), and Equity-Linked Savings Scheme (ELSS). These deductions help to lower the taxable income of the taxpayer and, in turn, reduce the amount of tax payable. However, the old tax scheme has higher tax rates compared to t...