The introduction of an alternative personal tax regime under Section 115BAC has significantly altered the framework of income tax planning for salaried individuals in India. With the coexistence of both the traditional (old) and simplified (new) tax regimes, taxpayers are now required to make an informed choice based on their income structure and eligibility for deductions. This study examines the relative advantage of the two regimes through a structured break-even analysis.
Singh et al. (Sun,) studied this question.