In an attempt towards the Direct tax code (DTC), Our Honourable finance Minister has announced dual slab rate. where Individuals has given option to choose the old slab rate or slab rate as defined in recently announced finance act, Now there are different questions in the minds of Assesses, which slab would be beneficial and whether do we have an option to select slab every year or is it irreversible decision. I have tried to resolve this query, the clarity for availing option is clarified by the Budget Memorandum available on the website: https://www.indiabudget.gov.in/doc/memo.pdf.
The Answer to this long debatable point is, the person who has done tax planning in earlier years, and has investment in LIC and other investment and has also availed home loan, so deduction benefit will always be more than the lower rate as defined in the recent finance act, however if anyone who has not much of investment and has not availed home loan yet, must opt for the new slab. Around 70 Deduction you must forgone for availing the new slab rate benefit. Many experts have opined that it is a loss to Assesses, However I do not completely agree with them as all the Assesses does not avail all the benefits which have to forgone while availing the benefit.
Now the Assesses, must evaluate himself in which he would be beneficial at the time of return filing and he must calculate it also at time making Advance tax calculations.
Now can Assesses change the slab rate obtained once, the Answer is Yes. As clarified in budget memorandum Assesses has option to change the method every year, however the person who has business income, cannot change this method once it is opted. so, assesses (who does not have any business income) need to evaluate the method every year and will select the method which is more beneficial to him. Further the government may also come with ITR utility which will compare the slab benefit.
Further in my opinion the benefit of the old slab is not available for ever, it is step towards the Direct tax code. so, government may scrap old slab in phased manner and all the Assesses will have to file the return as per new slab after few years.