“Which tax regime is better – old or new?”
We did a detailed calculation of which tax regime makes sense for salaried professionals. Here's a decision tree to make it easier for you.
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We did a detailed calculation of which tax regime makes sense for salaried professionals. Here's a decision tree to make it easier for you.
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If you are claiming any tax deduction or exemption amounting to Rs. 4,25,000 or more, the old tax regime is more beneficial. For individuals with income less than Rs. 15.5 lakh, this number can be lower.
And in all other cases the new regime is more beneficial.
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And in all other cases the new regime is more beneficial.
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Here are 4 reasons why the new tax regime is more favorable now –
[1] No income tax on income up to Rs. 7 lakh in the new tax regime
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[1] No income tax on income up to Rs. 7 lakh in the new tax regime
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[2] For income above Rs. 7 lakh -
- Number of income tax slabs reduced to 5
- Tax exemption limit increased to Rs. 3 lakh
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- Number of income tax slabs reduced to 5
- Tax exemption limit increased to Rs. 3 lakh
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[3] Standard deduction of Rs. 50,000 has been introduced which was only in the old regime before. So, if you have transitioned to the new regime, compared to last year you will save an additional Rs. 52,500 per year.
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[4] For those whose income exceeds Rs. 5 crore, surcharge has been reduced from 37% to 25% under the new tax regime.
What did you think about the #Budget2023?
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What did you think about the #Budget2023?
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