Whereas, under the old tax regime you can take it as a deduction.Under the new tax regime, you have to forego Rs.In case, you have a home loan for which you are paying Rs. Under the above situation, you are better off with the old tax regime. 1,50,000 and living on rent with HRA benefit of Rs. 10 lakhs in total income, with total investments under 80C like contribution to EPF and others, is Rs. Let’s calculate & compare your tax liability under both the old tax regime & new tax regime.įor example, you are earning Rs. Standard deduction of 50,000 only applicable to salaried persons, Leave Travel Allowance (LTA), House Rent Allowance (HRA), Entertainment allowance. The tax rates are lower in the new regime, but you will not be able to avail a total of 70 exemptions and deductions available under various sections of the IT Act, such as – Tax Rate (New Regime – devoid of exemptions & deductions) The income tax slabs are as follows: Income slabs (Rs) In FY 2020-21, individuals and HUFs have an option to move to the new tax regime.īut you need to intimate your employer about your choice at the beginning of the financial year. It’s better if you understand your income tax obligations and plan ahead for the tax-saving investments.įirst, you need to make a choice between the new tax regime or want to carry on with the old tax slabs. You can save your income tax without hiring a CA. I will share some tips to save income tax that’s not commonly known to everyone. This year the tax filing deadline for salaried individuals is 31st July 2021(may get extended due to lockdown caused by the second wave of Covid-19).īut if all your calculations and documents are ready then file your income tax return without waiting for the last date or extension.Īlong with filing returns of last year, you should also start tax planning for the current financial year.
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