Top News

• The old tax system will be abolished
• There will be changes in the new tax system
• What is the whole plan?

Old Tax Regime News in Marathi: Finance Minister Nirmala Sitharaman Union on 1 February 2026 Budget will present. Like every year, both the common man and the taxpayers, especially the employed, are keeping a close eye on the possible changes to income tax. How much tax they have to pay depends largely on whether they file their income tax returns under the old tax system or under the new tax system.

Ever since the implementation of the new tax system, a big question has remained in the minds of taxpayers. That is, will the old tax system be completely abolished in the future? In a survey conducted ahead of Budget 2026, most tax experts believe that the government may gradually move towards scrapping the old tax system, but the process will be done in a phased manner.

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New vs Old Tax Regime: What Are the Basic Differences?

The biggest difference between the new and old tax systems is the tax slabs and deductions. The new tax system has lower tax rates on higher incomes, but offers fewer exemptions and deductions. On the other hand, the old system has higher tax slabs, but offers the benefit of various exemptions and deductions. The new tax system has a higher basic exemption limit. With exemption under Section 87A, income up to approximately ₹12.75 lakh (including standard deduction) for salaried individuals is exempt from tax. Simply put, if a person earns ₹1 lakh per month, they pay zero tax. The old tax system has many exemptions, such as 80C (Investments like PF, PPF, LIC), 80D (Health Insurance), NPS, HRA, LTA, 80TTA on bank interest and home loan interest.

Why was the new tax system introduced?

The government aims to simplify the tax system. Numerous exemptions and deductions complicate tax filing and increase paperwork. In the Budget 2020, the Finance Minister said that a new tax system has been introduced to simplify the tax law and provide relief to common taxpayers. According to experts, the government has been hinting since the beginning that the exemption under the old system may be removed in the long run. That is why the new tax regime is being made more attractive in every budget.

The growing popularity of the new tax system

According to Surbhi Marwah, tax partner at EY India, approximately 72% of taxpayers opted for the new tax system in the tax year 2024-25. This clearly shows its rapid adoption. In the last two budgets, the government has introduced benefits such as more exemptions, higher tax-free limits and standard deduction under the new system. Experts believe that the number of people opting for the new system will increase further in 2025-26.

Will the old tax system be abolished?

To encourage savings and home loans old system Many experts believe that it is still necessary. Therefore, it is difficult to cancel it immediately. However, the government may gradually make it irrelevant. Some experts say that having two tax systems creates confusion and defeats the purpose of paying taxes. Meanwhile, others believe that the old system will be allowed to continue for a few more years so that people with long-term investment plans can transition easily. Overall, there are indications that the government is making the new tax system so attractive that the old system will automatically become less used in the coming years.

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