Old income tax regime or new? Work out the math before you make your choice

Compute your income-tax liability twice, under the old system and the new. Factor in likely events like job loss of pay cuts

The Income Tax department issued a clarification earlier this month that should help you decide if you want to move to the new tax regime or stick to the old one. The circular clarified that employers can start deducting taxes at source on salaries from the beginning of a financial year, based on the employee's choice of regime. The employee has to state his choice in a declaration, which your company's Human Resource department would, in all probability, have already asked you to furnish. But if you haven't heard from them yet, don't fret, you will soon. You could also