FM Sitharaman Confirms No Tax Rate Reductions for Old Tax Regime

Finance Minister Nirmala Sitharaman confirmed that there will be no reduction in tax rates for the old tax regime, despite requests from various stakeholders. The decision underscores the government’s commitment to the new tax regime, which offers lower rates but without deductions. Taxpayers who choose the old regime will continue to face the existing rates, which include numerous exemptions and deductions. This announcement may prompt more individuals to shift to the new regime for simplified tax filing, as the government encourages this transition to increase compliance and widen the tax base.