New Delhi:
After a rebate of 12 lakhs (standard deduction, 12,75000) and low tax slab in the new tax regime, now the question is where is the benefit. New Tax Regime or Old Tax Regimm? A simple answer is that if your income is 12 lakh 75 thousand or less, then do not forget to tease the default option of the new regime even while filing tax returns. If suppose you had adopted the old tax scheme, then how much tax would have to be paid? It would sit about 3 and a half thousand rupees. And that too, when you would be entitled to all the tax saving of 5 lakh 75 thousand found in the old scheme and submit their proof. Which is impossible for any middle class. Such nectar fruit which has been tasted.
| Income | Deduction | Hra | Taxable Income | Tax in Old Scheme | Tax in new scheme |
| 12.75 Lakh | 5.75 lakhs | 3.82 lakhs | 3.18 lakhs | 3,375 | 0 tax |
| 13 lakhs | 5.75 lakhs | 3.9 lakhs | 3.35 lakhs | 4,250 | 75,000 |
| 1.5 million | 5.75 lakhs | 4.5 lakhs | 4.75 lakhs | 11,250 | 1.05 lakhs |
| 2 million | 5.75 lakhs | 6 lakhs | 8.25 Lakh | 77,500 | 2 lakhs |
| 24 lakhs | 5.75 lakhs | 7.2 lakhs | 11.05 Lakh | 1.44 lakhs | 3 lakhs |
Now the big question is whether people who have income above 12 lakh 75 thousand, do they benefit in Puran Tax Regime or new? First of all, take a look at the old tax scheme. You claim a tax exemption of Rs 5.75 lakh by adding all in the old tax scheme. These are like this ..
- Home loan interest: Rs 2 lakh
- 80C discount: 1.5 lakh rupees
- NPS discount in 80CCD: 50 thousand rupees
- Medical claim discounts including 80D parents: 50 thousand
- LTA: 75 thousand rupees
- Standard deduction: 50 thousand rupees
So, all these discounts of the old tax scheme, they sit 5 lakh 75 thousand rupees. As mentioned above, it is a ‘Amrit fruit’ for the middle class, which is rarely tasted. All the exemption of the old scheme is impossible.
Now just understand that if someone fulfills the exemption of all these old schemes, then it is beneficial in new or in the old.
If the annual income is Rs 12.75 lakh
If your annual income is Rs 12.75 lakh, then there is no tax on it in the new regime. On choosing the old regime and a discount of Rs 5.75 lakh and even after claiming HRA, you would have to pay around 35 thousand tax.
If your annual income is 13 million
Now suppose you earn 13 lakhs in a year. In such a situation, a tax liability of about four and a quarter thousand will be made for your deduction and HRA claim in the old scheme. A tax of 75 thousand will have to be paid in the new regime.
If your salary is 1.5 million
In such a situation, a tax liability of 11 and a half thousand will be made in the old regime. This will have to pay 1.05 lakh tax in the new regime. Remind older people here again that this is only when you will claim all deductions and HRA of 5.75 lakhs. If you have taken a flat and goes to its EMI, whose principal amount, except for 2 lakh interest, then you definitely have an advantage in the old scheme.
If there is income up to 20 lakhs
After the exemption of 5.75 lakh + HRA in the old regime, tax liability will be made 77 thousand rupees. This tax will sit at Rs 2 lakh in the new regime.
If there is 24 million annual income
A tax of Rs 1.44 lakh will be made in the old scheme and a tax of Rs 3 lakh will have to be paid in the new scheme.