New income tax slabs can save you this much tax if your income is Rs 7.75 lakh or 15 lakh, 25 lakh or 30 lakh, 50 lakh or 1 crore and above Many salaried and taxpayers are confused how much tax they will save due to new income tax slabs. Here is comparison of tax savings under old tax regime, existing new tax regime and proposed tax regime
Budget 2024 has proposed to change the income tax slabs under the new tax regime. The changes in the income tax slabs under the new tax regime will mainly benefit people having taxable incomes upto Rs 10 lakh. There is no change in the basic exemption limit under the old and new tax regimes.#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;}
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Remember, there is zero tax payable under the new tax regime if taxable incomes does not exceed Rs 7 lakh. Further, the income tax slabs are changed to give relief to the lower middle class. The proposed tax slabs are: 0 - Rs 3,00,000 - 0%, Rs 3,00,001-Rs 7,00,000-5%, Rs 7,00,001-Rs 10,00,00-10%, Rs 10,00,001- Rs 12,00,000-15%, Rs 12,00,001-Rs 15,00,000- 20% and Rs 15,00,001 and above - 30%.
Also Read: New income tax slabs in new tax regime announced in Budget 2024
Existing tax slabs under new tax regime are: 0 - Rs 3,00,000 - 0%, Rs 3,00,001-Rs 6,00,000-5%, Rs 6,00,001-Rs 9,00,00-10%, Rs 9,00,001- Rs 12,00,000-15%, Rs 12,00,001-Rs 15,00,000- 20% and Rs 15,00,001 and above - 30%.
Given below are the tax savings for those earning above Rs 7 lakh due to changes in the income tax slabs in the new tax regime. The tax payable and the tax saved (after the Budget proposals) is given for the same income under the old tax regime and proposed new regime and current and proposed tax slabs under new tax regime.
Assumptions:
CASE 1 Only standard deduction: In the table given below, only standard deduction is claimed. Currently, under the old and new tax regimes, standard deduction of Rs 50,000 is available to the salaried and pensioners. However, Budget 2024 has proposed to hike the standard deduction amount to Rs 75,000 in the new tax regime only.
Tax Payable/Saving: Old Tax Regime vs. New Tax Regime (Proposed)
Taxable Income
Tax under Old Regime (Col A)
Tax under Proposed New Tax Regime (Col B)
Tax Savings/Payable(C=A-B)
7,75,000
59800
0
59800
15,00,000
257400
130000
127400
25,00,000
569400
434200
135200
30,00,000
725400
590200
135200
50,00,000
1349400
1214200
135200
1,00,00,000
3200340
3051620
148720
1,50,00,000
5139810
4984330
155480
2,00,00,000
6933810
6778330
155480
6,00,00,000
25357878
22967750
2390128
Tax Payable/Saving: Existing New Tax Regime vs. Proposed New Tax Regime
Taxable Income
Tax under existing new regime (Col A)
Tax under proposed New Tax Regime (Col B)
Tax Saving/Payable (C=A-B)
775000
26000
0
26000
1500000
145600
130000
15600
2500000
452400
434200
18200
3000000
608400
590200
18200
5000000
1232400
1214200
18200
10000000
3071640
3051620
20020
15000000
5005260
4984330
20930
20000000
6799260
6778330
20930
60000000
22990500
22967750
22750
CASE 2 Standard deduction and Section 80C deduction: In the table given below, we have assumed that the taxpayer claims standard deduction and Section 80C deduction. Remember, the Section 80C deduction is available under the old tax regime only. A salaried individual can claim deduction of up to Rs 1.5 lakh by making specified investments and expenditures such as EPF, PPF, Bank tax saving FDs, kids school fees.
Tax Payable/Saving: Old Tax Regime vs. Proposed New Tax Regime
Taxable Income
Tax under Old Regime
(Col A)
Tax under proposed New Tax Regime (Col B)
Tax Saving/Payable
(C=A-B)
775000
28600
0
28600
1500000
210600
130000
80600
2500000
522600
434200
88400
3000000
678600
590200
88400
5000000
1302600
1214200
88400
10000000
3148860
3051620
97240
15000000
5085990
4984330
101660
20000000
6879990
6778330
101660
60000000
25293762
22967750
2326012
Tax Payable/Saving: Existing New Tax Regime vs. Proposed New Tax Regime
Taxable Income
Tax under existing new tax Regime (Col A)
Tax under proposed New tax Regime (Col B)
Tax Saving/Payable (C=A-B)
775000
26000
0
26000
1500000
145600
130000
15600
250000
452400
434200
18200
3000000
608400
590200
18200
5000000
1232400
1214200
18200
10000000
3071640
3051620
20020
15000000
5005260
4984330
20930
30000000
6799260
6778330
20930
60000000
22990500
22967750
22750
CASE 3: Standard deduction, Section 80C deduction and certain exemption from salaries: In the table given below, it is assumed that the taxpayer is claiming standard deduction, Section 80C deduction and certain other exemptions available from salary income. Remember, these exemptions are available under the old tax regimes only. Here it is assumed that, in addition to standard deduction and 80C deduction, 20% of an employee’s gross salary is exempt from tax under exemptions such as HRA etc. New tax regime offers only two deductions only - Standard deduction and Deduction on employer’s contribution to employee’s NPS account.
Tax Saving/Payable: Old Tax Regime vs. Proposed New Tax Regime
Taxable Income
Tax under Old Regime (Col A)
Tax under Proposed New Tax Regime (Col B)
Tax Saving/Payable (C=A-B)
775000
0
0
0
1500000
117000
130000
-13000
2500000
366600
444600
-78000
3000000
491400
590200
-98800
5000000
990600
1224600
-234000
10000000
2462460
3063060
-600600
15000000
4009590
4996290
-986700
20000000
5444790
6790290
-1345500
60000000
18398250
22980750
-4582500
Tax Saving/Payable: Existing New Tax Regime vs. Proposed New Tax Regime
Taxable Income
Tax under Existing New Regime (Col A)
Tax under Proposed New Tax Regime (Col B)
Tax Saving/Payable (C=A-B)
775000
26000
0
26000
1500000
145600
130000
15600
2500000
452400
444600
7800
3000000
608400
590200
18200
5000000
1232400
1224600
7800
10000000
3071640
3063060
8580
15000000
5005260
4996290
8970
30000000
6799260
6790290
8970
60000000
22990500
22980750
9750
Source: Grant Thornton Bharat LLP
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This story originally appeared on: India Times - Author:Faqs of Insurances