Choosing the Right Tax Regime: Tax in India Explained by Prosperr.io

In this eye-opening episode of The Founder’s Dream – India’s top business podcast, Abhishek Vyas sits down with OP Yadav, Tax Evangelist at Prosperr.io, to break down the complexities of income tax in India. If you’ve ever wondered whether to choose the old or new tax regime, how to handle tax notices, or what’s best for your income slab, this is the ultimate guide.

How Has India’s Tax System Evolved?

According to OP Yadav, tax in India has come a long way. Before, tax filing was a long process and very confusing, but the current digital-first system is faster, transparent, and the best part? It is accessible to everyone. For example, getting tax refunds once took as long as 2 months, while now it’s automated and credited directly to bank accounts within days.

For him, Indian tax system is more than just about being compliant. It is planning, understanding, claiming the right deductions and choosing regimes that fit your goals. 

Old Tax Regime vs New Tax Regime in India

Maybe one of the biggest confusions taxpayers face is the decision to pick a tax regime in India. Let’s break it down with OP Yadav. 

Old Tax Regime: Ideal for citizens with multiple claims. Like HRA, home loan interest, medical insurance, 80C investments and more,

New Tax Regime: Here, the tax slabs may be low but it removes most deductions. Best for people with minimal investments or those who want the tax system to be as simple as possible.

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So, if you are earning up to ₹12 lakh annually you can compare both to see where they save more. Often, salaried professionals with home loans benefit from the old regime, while freelancers or those without major deductions prefer the new.

How to Deal with Tax Notices & Refunds?

A tax notice can cause immediate panic to people but OP Yadav explains why it’s not always bad news. You can be issued a notice for multiple reasons – clarification or verification. What should you do in this situation? Stay calm and respond with accurate documents. For refunds, he advises filing early and ensuring bank details are updated to avoid delays.

Senior Citizen Tax Benefits & NRI Taxation

This Hindi podcast episode covers a lot. Like tax benefits for senior citizens. What’s special about this? Well, people aged over 60 get higher exemption limits, while those above 80 pay almost nothing, if their income is within basic limits. While for people that don’t live in India, tax will depend on their residential status. Depending on DTAA (Double Taxation Avoidance Agreements) foreign income may not be taxable in India. This is why planning wisely will help avoid paying tax multiple times. 

House Property Income & Capital Gains

Another commonly misunderstood area is house property income. Even if you own one house and it’s vacant, it’s not taxed. But if you own multiple properties, deemed rental income is considered for taxation.

For capital gains, OP Yadav recommends planning sales of assets like stocks, gold, or real estate strategically to benefit from long-term capital gains tax, which is lower than short-term rates.

Choosing the Right Regime for You

Tax in India is mostly about makin informed choices. tax expert OP Yadav suggests a simple way online to compare old and new tax regime savings before filing. How? Tax calculators! Moreover, keep records of investments, expenses and Form 16 ready before you start. This episode of The Founder’s Dream business podcast is a must-listen for anyone looking to master tax in India. 

No matter who you are: an employee getting started, a founder managing multiple incomes or someone who does not live in India and wants clarity on the tax status while you are here.

OP Yadav’s mission at Prosperr.io is to make financial literacy simple, accessible, and actionable. By demystifying tax jargon, he ensures individuals don’t just file taxes but use them as a tool for better financial planning.