The new tax regime is still a good option to opt if you have high or low Deductions or Investments with high Salary Income or even Low Income without having Deduction or investments or Low Deduction or Investments .
Every Assesee trying truly to save money for future retirements by Investment in Life saving ,Financial saving ,Inflation adjustments in futures to secure with high inflation rate by mapping investment to cover Inflation vis a vis look to pay low legal tax and save more to quality life or investments which is good for growing economy .
Another way Increasing Investment in Capital Market by every types of investor will be remarkable and best way to convert your money into good amount and if hold for certain period i.e Long term you will benefited indexation in capital gain or even you can invest your Capital gain proceed to Land and building long term assets to save your capital gain tax
The New Tax Regimes Provides you Some Deduction or Exemption
- Transport Allowances w.r.t. Person with Disabilities
- Conveyance Allowance
- Travel/ Tour/ Transfer Compensation
- Perquisites for Official Purposes
- Exemptions for Voluntary Retirement Scheme u/ Section 10(10C)
- Gratuity Amount u/ Section 10(10)
- Leave Encashment u/ Section 10(10AA)
- Interest on Home Loan on Lent-out Property u/ Section 24
- Gifts of Up to Rs. 5,000
- Employer’s Contributions to Employees NPS Accounts u/ Section 80CCD(2)
- Additional Employee Costs u/ Section 80JJA
- Standard Deductions on Family Pension u/ Section 57(IIA)
- Deductions on Deposits in Agniveer Corpus Fund u/ Section 80CCH(2)
”You are liable to pay no tax if claiming a standard tax deduction of Rs. 50,000 on an income limit of Rs. 7.5 lakhs” if you compared this with old Regime you need have at least more than Rs.2,00,000/- In your Investment Kitty to save tax .
We have available Deduction or Exemption
Investments like LIC ,Fund Etc. – 1,50,000/-
Health Insurance –Rs.25000/- Rs.50,000/- Plus Medical Expenditure ,Fixed amount of Preventive health check up or maximum deduction in case of disability of self or dependent Rs.75,000/- to Rs.1,25,000/-
HRA Exemption – Depends on Calculation of salary structure Actual HRA received ,Rent Paid , State wise 50%/40% Calculation on Basics
Home loan Interest – Maximum 2 lac
NPS – Maximum Rs.50,000/- and in excess if 10% Contribution by employer on Basics
Education Loan – Education loan Interest
Donation charitable -50/100% Depends of organization social cause
The Old Tax Regimes Provides you Some Deduction or Exemption
- Standard Deductions u/ Section 80TTA and Section 80TTB
- Deductions u/ Section 80C, 80D, 80E, 80CCC, 80CCD, 80DD, 80DDB, 80EE, 80EEA, 80G, etc. of Chapter VI-A of IT Act
- Professional Tax
- Entertainment Allowance on Salaries
- House Rent Allowance (HRA)
- Leave Travel Allowance (LTA)
- Helper Allowance
- Child Education Allowance
- Minor Child Income Allowance
- Interest on Housing Loan Self-Occupied/ Vacant Property
- Other Special Allowance u/ Section 10(14)
- Employee’s Contributions to NPS Account
- Donations to Political Parties/ Trusts
“So, Before adopting any Regime go for calculation and benefit both the regime are available with their benefit’
“Options available “
CA.ANUJ ARYA ,9211247073
Author Bio
