Comparative Analysis of New VS Old Tax Regime
Authors:-Dr. Batani Raghavendra Rao, Rupesh M, Samruddhi Pattanashetti, Sanjay M, Shreevalli K M, Saravana Reddy Kunam, Shravana S Khodanpur, Shubham Pain, Simran Sharma
Abstract-This research paper conducts a comparative analysis of the old and new tax regimes for the financial year 2023-2024 in order to evaluate their impact on individual taxpayers, businesses, and government revenue. The study compares the main differences in tax slabs, deductions, and overall tax burden at different income levels. Further, it covers the compliance burden and administrative efficiency of both regimes, analysing how they affect taxpayer behaviour and economic decision making. This research will apply a combination of both qualitative and quantitative methodologies. The financial impact of each regime for different taxpayer groups is analysed by comparing tax liabilities under different income brackets, showing which regime provides more benefits for each group of taxpayers. Interviews and surveys with tax professionals and salaried people reveal information related to preferences, challenges, and practical implications associated with each regime. The study further analyses broader macroeconomic indicators, such as revenue generation, disposable income, and investment trends, in order to find out the broader economic implications of the tax reforms. The research results find that the old tax regime remains beneficial for those with significant investments that result in savings under the deduction sections: 80C, 80D, and HRA. The old regime is likable by high-income earners and those with complicated financial structures because it saves on taxes. On the other hand, middle-income earners and those without substantial investments prefer the new tax regime since it reduces complexity in tax filing and compliance. The new regime may also involve an increase in disposable income, which may fire up consumer spending, although it is less clear what the effect will be on long-term savings and investment patterns. This, therefore, implies that both regimes have their respective advantages and limitations, and the optimal choice would depend on an individual’s financial situation and tax saving strategy. Policymakers must continue to refine tax structures for better revenue generation and taxpayer convenience, ensuring economic stability. This detailed comparative assessment will help taxpayers make informed financial decisions and contribute to the ongoing discourse on tax policy improvements in India.
DOI: 10.61137/ijsret.vol.11.issue1.178

Published by: Kajal Tripathi