Experts Explain Tax Differences Between Salaried Professionals and Wealthy Individuals

Salaried professionals often face higher effective tax rates than wealthy individuals due to differences in income structuring and tax provisions under the Income Tax Act. Experts highlight that gifts within specified relatives are tax-exempt, and wealthy individuals may use tools like LLPs for income splitting and expense deductions. Taxpayers must evaluate their income profiles annually to choose between the old tax regime, which benefits those with deductions, and the simplified new regime, which suits those with fewer exemptions.