Whether new personal tax regime is better for you
Budget 2020, new tax slab has been offered to individuals as an option but is it advisable to opt for it without any assessment?
An Individual needs to check whether he is getting any benefits out of it. If someone opt out for new tax regime then he will not be eligible for deductions including
1. Standard deduction of Rs 50,000
2. House Rent Allowance
4. Professional Tax
5. Interest on House Loan
6. Deduction under chapter VI-A such as section 80C, 80D, 80G etc
Therefore it is important to compare the total amount of deductions claimed and find out whether it benefits. You can check table for tentative break even point of deductions claimed. If you are claiming deductions higher than that amount then existing tax slab will be beneficial.
This is only tentative indicators. You can also use attached sheet for calculations.