Explained: Does the new tax regime adversely affect household savings?

New tax regime does not have tax deductions as is given under various provisions such as 80C or 80D of the Income Tax Act

Indivjal Dhasmana | New Delhi
Last Updated at February 21, 2023 09:00 IST

Critics, including former Finance Minister P Chidambaram, have criticised the Budget's focus on the new tax regime saying it does not motivate people to save. This focus, they say, is not good for developing economies that rely on both corporate as well as household savings to spur growth.

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