Finance Minister Nirmala Sitharaman on Saturday, 1 February proposed to bring a new personal income tax regime, where income tax rates will be reduced but several exemptions will be removed.

The new tax regime will be optional and the taxpayers will be given the choice to either remain in the old regime with exemptions and deductions or opt for the new reduced tax rate without those exemptions, she said in the Lok Sabha while unveiling the Budget 2020-21.

Those opting for the new tax regime will have to forego 70 out of 100 exemptions currently enjoyed by taxpayers.