April 20, 2023

Old vs. New Income Tax Slab: Salary Is Best for A.Y.2024-25 and checks your tax liability by this Excel Utility for the F.Y.2023-24 and A.Y.2024-25

 

Old vs. New Income Tax Slab:

Old vs. New Income Tax Slab – Everyone's eyes are on the tax slab and the budget. Currently, there are

 two income tax slabs in the country. There are different provisions in both cases. If a person's salary is

 50 thousand, then how much tax will be deducted from the new or old tax slab? Let us tell you this.


Therefore

Budget 2023: The general budget will be presented on February 1. The fiscal year 202-23 is about to

 end. This time, people are hoping that the income tax exemption offer will come out of Finance

 Minister Nirmala Sitharaman's box.

 In other words,

Everyone's eye remains on the tax slab and the budget. Currently, there are two income tax slabs in the

 country. There are different provisions in both cases. If a person's salary is 50 thousand, then how

 much tax will be deducted from the new or old tax slab? Let us tell you this.

However

Two tax slabs

Speaking of changing tax sheets, in past budget sessions people have been disappointed. Currently,

 there are two tax systems in the country. The first system is called the Old Tax Slab. To provide relief

 to taxpayers, in 2020, the government introduced a new tax slab to make filing ITR easier. To this end,

 they also began to develop a new system. However, despite bringing in a new slab, the government

 retained the old tax slab.

How much tax of the old system on 50 thousand salaries?

For instance, If the monthly salary is Rs 50 lakhs and there is no other source of income, the annual

 income will be Rs 6 lakhs. If you opt for the above system, a deduction of up to Rs 1.5 lakh is available

 under Section 80C of the Income Tax (IT Act 80C). Employed persons also get the benefit of the

 standard deduction of Rs 50,000.

Under the old system, there is no income tax up to 2.5 lakhs. A 5% tax is required on income between

 Rs 2.5 lakh and Rs 5 lakh. But after the discount of Rs 12,500, it becomes zero. That is, according to

 this slab, no tax will be due on income up to Rs 5 lakh.

5,00,000(Income) – 5,00,000(Net Tax Deduction)= 0 Tax

How will the tax be saved on an income of Rs 6 lakhs in the new tax system?

Under the new tax system, income up to Rs 2.50 lakh is tax-free, but after that, Rs 2.5 lakh will be

 taxed at 5%, which is equivalent to Rs 12,500. A tax of Rs 24,400 is applied to wages up to Rs 6 lakhs

. If the income is more than Rs 5 lakh and Rs 1 lakh, then that amount of Rs 1 lakh will fall under the

 10% bracket. In this case, a tax of Rs 10,000 will be applied. Likewise, a rate of 4% will be applied to

 the liquidated tax. If the tax is Rs 12,500 then the tax will be Rs 900.

How will the income from 6 shortfalls be tax-free?

Below 80C, cashback up to Rs 1.5 lakh is available. For this, you can invest in NSC, ELSS, PPF, and

 EPF. Apart from this, if you contribute Rs 50,000 to the National Pension System (NPS), you will get

 an additional deduction of Rs 50,000 in 80CCD (1B). Home loan borrowers can save Rs 2 lakh

 separately.

• Income 6,00,000-1,50,000 (PPF, EPF) = 4,50,000

• 4,50,000-50,000 rupees (NPS) = 4,00,000 rupees

• 4,00,000-2,00,000 (mortgage loan) = 2,00,000 (tax free) .

Download and Prepare Income Tax All in One for the Non-

Government Employees for the Financial Year 2023-24 and

 Assessment Year 2024-25[This Excel tools prepare at a time your

 Tax Computed Sheet + Automatic H.R.A. Exemption

 Calculation U/s 10(13A) + Auto Fill Income Tax Form 16 Part

 A&B and Form 16 Part B + Form 12 BA]

Old vs. New Income Tax Slab

Old vs. New Income Tax Slab

Old vs. New Income Tax Slab