New and old tax regimes? The new regime will be benefited those who are less invested to claim in
any scheme, while the old regime will be benefited eligible taxpayers like that HRA, health insurance,
home insurance, PPF, etc. This will be more beneficial to claim such deductions or exemptions.
As the financial year begins, one of the most pressing concerns of the salaried class is whether to choose the old or the new regime. If the new regime will be benefited who's Investment less to claim, while the old regime will be benefited eligible taxpayers like House Rent Allowances, health insurance U/s 80D, home insurance, PPF, Under Section 80C, etc? It will be more profitable to claim such deductions.
You may also like- Download and Prepare at a time 50 Employees Form 16 Part B for the Financial Year2022-23 and Assessment Year 2023-24
Obviously, the situation varies from person to person. To speed up the decision-making process, we calculate break-even limits for various returns. This will help you determine which scheme is most profitable for you. If you qualify for deduction up to a certain limit, your income tax liability would be the same under the old and new regimes.
Here's an example to clarify the point: If the total cost is claimed at Rs 237,500 (excluding deduction of Rs 50,000), your tax liability will be the same under both schemes if your gross income is Rs 9. 50 million. This means that if your income exceeds Rs 2,37,500, the old tax regime would be more beneficial for you; if not, a new tax regime would be the best option.
You may also like- Download
and Prepare at a time 50 Employees Form 16 Part A&B for the Financial Year
2022-23 and Assessment Year 2023-24
Similarly, a back-of-the-envelope calculation shows that if we earn more than Rs 3.75 lakh (excluding the standard income of Rs 50,000), the tax liability is Rs 15.5 lakh or more on gross income. For income less than 15.5 million rubles, there are various balance expenses.
See the
table below for break-even deductions for different income brackets:
3, 75,000 is 5 breaks for gross income. For incomes above 5 million rubles, the new tax regime is more profitable due to a reduction of 25% (the surcharge under the old tax regime will be 37%). The new tax regime will become the tax regime. Thus, taxpayers need to compare their tax payments between the old regime and the new regime, based on the available exemptions, under which regime they prefer to be taxed. For individuals with income (except businesses and professionals), this option can be exercised annually.
The good thing is that under the new tax regime, the tax exemption threshold has been raised to Rs 7 lakh. Under the old tax regime, the tax deduction limit is 5 million rubles. Thus, income up to Rs 7.5 lakh (standard amount Rs 50,000) will not have to pay tax under the new scheme.
Feature of this Excel Utility:-
1) This
Excel utility prepares and calculates your income tax as per the New Section
115 BAC (New and Old Tax Regime)
2) This
Excel Utility has an option where you can choose your option as a New or Old Tax
Regime
3) This
Excel Utility has a unique Salary Structure for Non-Government Employees
Salary Structure.
4) Automated
Income Tax Form 12 BA
5) Automated
Income Tax Revised Form 16 Part A&B for the F.Y.2023-24
6) Automated
Income Tax Revised Form 16 Part B for the F.Y.2023-24
