The new tax regime was introduced in the finance act 2020 with the intention to provide an option of simplified tax structures and lower tax rates for those who forgo certain deductions and exemptions though this was welcomed by a section of taxpayers many chose to continue with the old regime which permitted the claims of deductions/exemptions

To make the new tax regime more popular the finance act 2023 brought in the following changes it has become now the default tax regime that would be used to compute taxes

Rebate under section 87A has been increased under the new tax regime for income upto 7 lakh against 5 lakh in the old tax regime