Old vs New Tax Regime: Which is Better for Freelancers?
India offers two choices for filing income tax returns. Choosing the correct one can save thousands in taxes.
Key Differences - **Old Tax Regime**: Higher slab rates but allows deductions like Section 80C (PPF, LIC), 80D (Health Insurance), and House Rent Allowance (HRA). - **New Tax Regime**: Lower slab rates but removes almost all deductions. Under Section 44ADA, freelancers opting for presumptive tax can select either regime based on total calculations.
Disclaimer
Tax rules, thresholds, and calculations are estimates subject to regulatory changes. Always verify information on the official Income Tax or GST portals, or consult a qualified Chartered Accountant before final filing or payment.