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Moreover, taxpayers with business income can not switch back to old regime after moving to the new tax structure. After opting to the new regime, they would not be entitled to several exemptions and deductions including under Section 80C, 80CCC and 80CCD. In brief, they would be ineligible for as many as 70 deductions.Salaried people can, however, make shift back and forth depending on the benefits.Citing the example of a person with an annual income of Rs 12.5 lakh availing some deductions and benefits, Rakesh Nangia, Chairman, Nangia Andersen Consulting, said that it does not make sense for him to switch to the new regime."By availing deductions and benefits under the Income Tax law, the person can reduce his tax liability. By taking benefits of 80C, standard deduction and HRA, he can reduce his tax liability to Rs 85,000. But under the new tax structure, he will have to pay a tax of Rs 1.30 lakh," Nangia said.Proposing to lower the tax rates while presenting Union budget, Sitharaman said that the proposed tax structure will provide significant relief toA taxpayers and more so to those in the middle class.As per the budget proposal, those earning Rs 5-7.5 lakh a year would now pay a tax of 10 per cent on income between Rs 5 and Rs 7.5 lakh from 15 per cent now. Income between Rs 7.5 lakh to Rs 10 lakh will also attract a lower tax of 20 per cent. For annual income between Rs 10 lakh and Rs 12.5 lakh, the income tax rate has been reduced to 20 per cent from 30 per cent.Those earning Rs 12.5 lakh to Rs 15 lakh will pay 25 per cent tax. But lower tax rate could be availed only by foregoing all the exemptions.The Finance Minister said that those earning over Rs 15 lakh would continue to pay the tax at the current rate of 30 per cent."The proposed tax structure is not only complex but financially unviable for most of the taxpayers. There are almost 70 deductions of which 4-5 deductions are claimed by taxpayers generally these would not be available in the new regime," said Vivek Jalan, Partner, Tax Connect Advisory Services LLP.( With inputs from IANS )

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