New Delhi, Aug. 25 -- For individual taxpayers, the new Income-Tax regime's Rs.12 lakh tax-free threshold is a welcome relief, but for business owners and professionals, it can be deceptive. Falling below this income limit does not guarantee zero tax liability.

Ankit Gupta, chartered accountant and managing partner at Ankit Mahesh Gupta & Associates, told Mint that the applicable tax regime, the nature of income and, importantly, compliance with the prescribed procedure - all determine the final tax outcome.

The new tax regime is the default regime.

Gupta noted that for taxpayers earning only a salary, interest or other non-business income, switching between the old and new regimes is relatively flexible. "They can generally choose the...