Calculate To Evaluate

In a quest to simplify the tax structure, India has ended up with one of the most complicated systems, where a taxpayer has the choice of two different regimes. How do you perceive this? Simplification is a journey. From where we started, a lot has been done to reduce exemptions, introduce automation and make compliances painless. However, there are some complexities, which taxpayers have to decipher. For instance, individuals have to think of the tax regime that is right for them. Under one scheme, they can forgo all deductions for a lower effective tax rate. However, it depends on calculations, and the fine print. It is possible that an individual earning an annual salary of Rs 12 lakh will be better off (cash flow-wise) under the old system of claiming deductions. For corporate taxpayers, there are several rates to consider - 15, 22, 25 and 30 per cent with conditions. Units set up...