Income Tax Tips: Which tax regime will be better for taxpayers now, know where more tax will be saved..

In the new tax regime, the government has made major changes in the income tax slab. In this, the income exemption for taxpayers has been increased once again. At the same time, no change has been made in this budget in the old regime. At the same time, now the question arises that which tax regime should taxpayers adopt.

1 lakh 10 thousand rupees will be saved on income up to Rs 24 lakh

After 1997, there has been a big change in the income tax slab in the country. Finance Minister Nirmala Sitharaman has given great news to the middle-class families in the budget. Such a discount in income tax has been given for the first time. Income up to Rs 12 lakh for the middle class has been kept out of the scope of income tax. At the same time, those with income up to Rs 24 lakh will also save Rs 1 lakh 10 thousand. Now, which new or old tax regime is right for those above this? Let us know.

New income tax exemptions are given only in the new regime.

The government has given all the income tax exemptions only in the new regime. The old tax regime has been kept the same. There are many differences between the new and old tax regimes, but the old tax regime has not been abolished. The government has continued the old tax regime and has left it to the people to decide which tax regime they should adopt.

The benefit of investment exemption in the old regime

While, on the one hand, direct tax exemption has been given in the new tax regime, additional exemption on investment etc. remains in the old regime. Now the question arises whether to use the new regime or continue with the old one. Let us understand with some easy examples.

If the income is 30 lakhs, then how much tax will have to be paid

Income up to Rs 4 lakh has been kept nil in the new regime. At the same time, a standard deduction of Rs 75,000 has also been given to salaried people. In such a situation, if we look at salaried people, they will have to pay tax on Rs 25 lakh 25 thousand out of Rs 30 lakh. In such a situation, the first 5 percent tax will have to be paid on Rs 4 to 8 lakh, that is, Rs 20 thousand, to this, will be added 10 percent of Rs 8 to 12 lakh of the second income tax slab, that is, Rs 40 thousand.

Now, 15 percent of Rs 12 to 16 lakh will be added to this, which will become Rs 60000. At the same time, there is a 20 percent tax for the slab of 16 to 20 lakh, in this 20 percent of 4 lakh is Rs 80000. On the income tax slab of 20 to 24 lakh, the tax is Rs 1 lakh as per the 25 percent tax. After a standard deduction above 24 lakh, 5 lakh 25 thousand rupees remain, on which 30 percent tax will be levied. That means 1 lakh 57 thousand 500 rupees tax will be added. After adding all this, 4 lakh 57 thousand 500 rupees tax will be made, which will be levied on the income of 30 lakh rupees.

Now let's know the calculation of the old regime.

If you have an annual income of 30 lakh rupees and are a salaried class, then according to the old regime, you can take advantage of many types of tax exemptions. According to section 80C of Income Tax, you can get a discount of Rs 1.5 lakh, if you have taken a home loan, then you can get a discount of Rs 2 lakh on its interest. Apart from this, you can take a discount of Rs 50000 in NPS. You can take a discount of Rs 25000 on your health insurance. A discount of Rs 50000 can be taken on the health insurance of parents. Whereas, in the old regime, a standard deduction of 50 thousand is available. There is also an exemption on HRA. It depends on the basic salary.

If your salary is 30 lakh rupees per annum and the basic salary is 8 lakh rupees, then in metros you can take 50 percent of the basic salary as HRA. Whereas, in small cities, 40 percent i.e. 3 lahks 20 lakh rupees can be taken as an exemption in the form of HRA. If 4 lakh rupees HRA is available, then the total exemption becomes 9 lakh 25 thousand rupees. This means that now, after deducting 9 lakh 25 thousand from 30 lakh, tax will have to be paid on Rs 2075000.

22500 thousand rupees more will be saved in the old regime

At the same time, in the old tax regime, 2.5 lakh rupees are tax-free. Above this, 5% tax on 2.5 lakh to 5 lakh amounts to 12 thousand 500 rupees. Whereas, on 5 to 10 lakh rupees, it is directly 20% i.e. 1 lakh rupees. Whereas, on 10 lakh to 10 lakh rupees, the tax is 30%. This means the amount of tax (Income Tax) will be 3 lakh 22 thousand 500 rupees. On adding all these, the total tax that will have to be paid will be 4 lakh 35,000 rupees. Whereas, in the new regime, the tax will be 4 lakh 57500 rupees. Meaning there is a saving of 22 thousand 500 rupees in the old regime.

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