Overview
- Media reports and a Times of India survey cited by News18 say most tax experts expect the old income-tax regime to be withdrawn gradually, though no decision has been announced.
- February 1 is expected to provide clarity, with experts forecasting stability this year rather than new slab changes after last year’s overhaul.
- The New Tax Regime is the default and, with current slabs and the Section 87A rebate, many individuals with income up to about ₹12 lakh owe no tax; 72% of 7.28 crore ITRs for AY 2024–25 were filed under it.
- Transition options discussed include freezing or limiting deductions, grandfathering current users, or closing the old regime to new entrants over time.
- Specialists propose targeted tweaks to widen appeal—such as a higher standard deduction or capped deductions for home-loan interest, NPS and health insurance—and advise old-regime users to finish 80C/80D investments by March 31, 2026.