old tax regime and new tax regime
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How much is your disposable and net income?
Old tax regime: Govt encourages doing investment which block your money for x years.
New tax regime: Govt doesn't encourage investments and wants you to have more money in hand that you can spend and increase economic activity.
For more info, search on websites like cleartax etc.
There are tons of articles
Spend few mins to search on net
Simple and easy if you are in high income bracket ( >15L taxable income)
A. Benefit of new regime (lower tax rates) = 1,17,000 saved due to lower tax rates/ slabs. [based on FY 2024-25 rates]
B. Cost of new regime = Deductions disallowed x 30.4%
If A-B is positive for you, then go for new regime.
Some of the most commonly used deductions/exemptions disallowed under new regime are:
If you are not claiming much of these benefits, better select new regime.
1) House Rent Allowance received from employer(salaried employees)
2) 80C x- Certain specific investments upto 150000 + NPS (50K)
3) 80D x - Health insurance payments, health expenses
4) 24b - Interest expense on home loan
5) LTA, Telephone allowance received from employer (salaried employees)
no