Old Tax Regime versus New Tax Regime (2025) of Indian Income Tax: A Comparative Study

Abstract: This paper critically examines the implications of the Old Tax Regime versus the New Tax Regime of Indian Income Tax proposed for 2025, aimed at determining their comparative effects on individual taxpayers' financial outcomes and compliance behaviors. By analyzing quantitative data on tax liabilities, taxpayer demographics and compliance rates, alongside qualitative insights from taxpayer experiences and expert opinions, the research identifies significant distinctions in the efficacy and fairness of the new regulatory framework. The findings indicate that the New Tax Regime, while designed to simplify compliance and potentially enhance revenue generation, may disproportionately impact lower and middle-income taxpayers, raising concerns about equity and accessibility. The study highlights the complexities surrounding taxpayer attitudes towards both regimes, suggesting that misconceptions regarding the benefits of the new system may hinder compliance, ultimately affecting overall tax revenue. This research bears significant implications, not only for fiscal policy and reform in India but also for healthcare financing, as the resultant tax revenues directly influence the government's capacity to fund health initiatives. By elucidating the relationship between tax policy and financial behavior, this study contributes to a broader discourse on the effectiveness of tax systems in promoting equitable economic growth, thereby offering valuable insights for policymakers, tax authorities and stakeholders within the healthcare sector seeking to understand the intricate interplay between taxation and public health funding. Keywords: Income Tax, New Tax Regime, Old Tax Regime, Taxpayers, Policymakers. Title: Old Tax Regime versus New Tax Regime (2025) of Indian Income Tax: A Comparative Study Author: Dr. Tanoj Mondal International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Vol. 13, Issue 2, October 2025 - March 2026 Page No: 250-255 Research Publish Journals Website: www.researchpublish.com Published Date: 05-January-2026 DOI: https://doi.org/10.5281/zenodo.18150934 Paper Download Link (Source) https://www.researchpublish.com/papers/old-tax-regime-versus-new-tax-regime-2025-of-indian-income-tax-a-comparative-study