3 Steps to know which Tax Regime or Tax Structure is better for You ! Old or New ?
Its high time for you to fill up your tax declarations and opt for old or new tax regime provided in the current year Budget by Finance Minister.
Let’s talk about a tool that can assist you in knowing your estimated tax liability or which Tax regime is better for you?
Check out the below tool or calculator provided by Income Tax Department.
Kindly see this video provided by CaConsult if you are interested to know how to use this calculator and what to EXCLUDE AND WHAT NOT while using calculator.
Now, you have to Follow the quick three steps to know your estimated tax saving or which tax regime is better for you!
- Now, Enter your estimated Annual income like Rs. 15,00,000
- Now, mention your Exemption and deductions Rs. 2,40,000
“welcome to CaConsult Research”
Now, you will have below questions in your mind:
- What are the Exemptions and deductions that cannot be claimed in New Tax Regime?
- The Standard deduction, professional tax and entertainment allowance on salaries
- Leave Travel Allowance, House Rent Allowance (HRA)
- Minor child income allowance, Children education allowance, Other special allowances
- Interest on housing loan on the self-occupied property or vacant property (Section 24)
- Chapter VI-A deduction (80C,80D, 80E and so on)
- Without exemption or deduction for any other perquisites or allowances
- Deduction from family pension income.
2.How should you choose the new regime and plan your income tax?
- Choosing tax regime at the beginning of the financial year is essential to ensure smooth financial planning during the year.
- Please compare income tax under the new tax regime with the old regime and know your savings or which tax regime is better for you !
- Once you choose the tax regime at the beginning of the year, the investments and TDS or advance tax payable calculations are made accordingly.
