Tax Regime Showdown: Twinkle Jain Breaks Down the Pros and Cons

The latest budget has brought a major tax relief for salaried individuals, and finance expert Twinkle Jain breaks it down in much simpler terms. If you earn up to ₹12 lakh, you will now pay zero tax under the new tax regime. 

If your income is ₹18 lakh, your tax liability has reduced from ₹2,30,000 to ₹1,60,000, saving you ₹70,000! Plus, there's also an added ₹75,000 standard deduction. Sounds like a great deal, right? But there's a good catch!

What's the Trade-Off?

While the new tax regime offers lower tax rates, it eliminates the key deductions like:

• Section 80C (Investments in PPF, ELSS, etc.)
• HRA (House Rent Allowance)
• Home Loan Interest Deductions

This move signals a strong push by the government to encourage the taxpayers to opt for the new system, making tax filing simpler but removing traditional tax-saving benefits.

Should You Switch?

• YES – If you have minimal deductions and prefer lower tax rates.
• NO – If you maximize deductions and benefit more from the old regime.

Twinkle Jain spotlights that while the new regime means more cash in hand, some individuals with significant investments and expenses may still find the old tax regime more beneficial.

What's your pick? Old or new tax regime? Comment below and share your thoughts!

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For more financial insights, Keep it Simple with Twinkle!