This is completely wrong.For people earning more than 15L, old Tax regime is still better. It becomes even better when you claim things like LTA, HRA etc. New Tax regime is quite useless, only thing is offers is convenience in returns filing
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Income tax expectations thread
- Thread starter schatterjee18
- Start date
Care to explain ?
Try calculating urself. Below is new regime. And reduce 50k standard deduction for salaried while doing calculation.
0% - 0-3L
5% - 3-6L
10%- 6-9L
15% - 9-12L
20% - 12-15L
30% - 15+
Old one is better only if u r doing 4.25L+ exemption for people above 15.5L income.
3.75L is for non-salaried and below 15L. For salaried above 15.5L, 4.25L is limit, as standard deduction also gets applicable.
What’s the split for 4.25?
Is this included std 50k deduct
No.
4.25 includes all exemption in old regime that is not in new - 80c, 80ccd, 80d, hra, housing loan, LTA etc.
Employer nps, employer pf, standard deduction etc are common in both and not part of 4.25L.
Edit: Seems i was wrong a little bit. Standard deduction is part of 4.25L actually.
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Thanks for the split
Post April i will come under 15+ fixed apart from variables so hopefully planning to opt for new regime 😊
Post April i will come under 15+ fixed apart from variables so hopefully planning to opt for new regime 😊
Can someone tell whether share of employer contribution to EPF is tax free in new regime or not?
Yes employer part of contribution is exempted both PF and NPS
Here is the link I found on Old vs New regime Tax calculations. As per this calculator, breakeven still comes at 3.75L of exemption post all standard deductions. Which means, Old regime is better if you can claim more than 3.75L deductions post 15L income also
assetyogi.com
Please check as per your income levels and then decide.
Downloads
Old vs New Tax Regimes: FY 2023-24 A simplified calculator for taxpayers to determine tax rates per new tax slabs introduced in Budget 2023. Compare the
assetyogi.com
Please check as per your income levels and then decide.
in new scheme, you dont need to block 50k every year in NPS till 60 years and then get poor annuity returns.
Nothing, current govt knows they are going to win elections again, so they dont care. The new years after elections will get even worse
Whatever the govt move but making new regime as default is the clever trick since there’s no strong opposition to them in next yr elections
Generations used 80c to save tax but now by default it gone and one have to choose from employer to save tax by 80c which Many employees will miss sure
Generations used 80c to save tax but now by default it gone and one have to choose from employer to save tax by 80c which Many employees will miss sure
Annuity is deal dampener, but the option to put in amount in equity kind of compensates to some extent. Hopefully it will be tweaked further.
