Individual
earning Income between Rs. 7.5 Lakhs to 10 Lakhs
Income of Rs. 9 lakhs |
|||
|
Old Regime (w/o Deductions) |
Old Regime (with Deductions) |
New Regime |
Income |
900,000.00 |
900,000.00 |
900,000.00 |
Deductions/Exemptions |
- |
150,000.00 |
- |
Taxable Income |
900,000.00 |
750,000.00 |
900,000.00 |
Tax |
92,500.00 |
62,500.00 |
60,000.00 |
Cess @ 4% |
3,700.00 |
2,500.00
|
2,400.00 |
Total Tax |
96,200.00 |
65,000.00 |
62,400.00 |
Income of Rs. 9 lakhs |
|||
|
Old Regime (w/o Deductions) |
Old Regime (with Deductions) |
New Regime |
Income |
900,000.00 |
900,000.00 |
900,000.00 |
Deductions/Exemptions |
- |
200,000.00 |
- |
Taxable Income |
900,000.00 |
700,000.00 |
900,000.00 |
Tax |
92,500.00 |
52,500.00 |
60,000.00 |
Cess @ 4% |
3,700.00 |
2,100.00
|
2,400.00 |
Total Tax |
96,200.00 |
54,600.00 |
62,400.00 |
Ø
Income Upto 10 Lakhs, Maximum saving
due to Low Rate of Tax is Rs. 37,500/-, This can be saved with Investment/deduction
of Rs. 1,87,500/-
Ø
For Salaried Individuals, Rs. 2 Lakhs Investment
for Deductions can be managed:
o Rs.
50000 from Standard Deduction without any investment/proof and
o Rs.
50000 – Rs. 70000 must be going to EPF (Compulsory) considering 12% of Basic
and DA. OR
o Those
having Lower EPF must be having Higher HRA. Hence EPF and HRA deduction will be
saving around Rs. 70000 – Rs. 100000.
o Tuition
Fees of Children’s is also unavoidable and must be around Rs. 35000 – Rs. 60000
o Saving
Bank Interest and LTC benefit may range from Rs. 30000 – Rs. 50000.
Ø
Clearly
For Salaried Individuals it is beneficial to opt Old Regime with Deductions and
Exemptions
Ø
Salaried
/ Self Employed Individuals if already having regular prefixed investments /
Insurance like LIC Policy, House Loans, and then Old regime is better.
Ø
And for
Self Employed Individuals who do not want to Invest in any of the saving
Options available (being low ROI) may opt for New Regime without Deductions.
Otherwise Old Regime is better.
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