New vs old tax regime: Compute liability before making the switch

Non-investors in tax-saving instruments may opt for the new regime

The September 30 deadline for filing income-tax return (ITR) for 2020-21 (assessment year 2021-22) is still some time away, but it is prudent to start the process early. One decision those filing returns will have to take is whether to stick with the old or switch to the new tax regime.
 
Salaried individuals need to inform their employer about the regime they have opted for at the start of the financial year, allowing the latter to deduct TDS (tax deducted at source) during the year at applicable rates. However, employees can change their minds at the last minute.