New Delhi, Feb 1 (PTI) Tax payers with annual income of up to Rs 7 lakh will save Rs 33,800 in taxes after Finance Minister increased the rebate under the new income tax regime.
However, the old tax regime that comes with exemptions on certain investments and expenditures will remain attractive for tax payers who pay house rent or have a home loan.
According to Deloitte India, Partner, Neeru Ahuja inidividuals who get house rent allowance (HRA) from their employer and pay rent for their accomodation are likely to pay lower tax under the old tax regime.
In addition to HRA deductions, individuals can also claim deduction on interest on their home loan under old tax regime if the distance between the two accomodation is more than 40 kilometers, she said.
As per EY, after all possible deductions--HRA exemption, standard deduction, Professional tax, Section 80C, Section 80CCD(1B) and Section 80D , available under old tax regime, an individual (upto 60 years) will have have to pay tax as per following chart:
Gross Income- Rs 7,00,000
Tax Payable:
As per current Concessional tax regime Rs 33,800
As per proposed Concessional tax regime Nil
As per old tax regime Rs 22,901
Gross Income- Rs 10,00,000
Tax Payable:
As per current Concessional tax regime Rs 78,000
As per proposed Concessional tax regime Rs 54,600
As per old tax regime Rs 31,221
Gross Income- Rs 20,00,000
Tax Payable:
As per current Concessional tax regime Rs 3,51,000
As per proposed Concessional tax regime Rs 2,96,400
As per old tax regime Rs 2,88,371
Gross Income- Rs 35,00,000
Tax Payable:
As per current Concessional tax regime Rs 8,19,000
As per proposed Concessional tax regime Rs 7,64,000
As per old tax regime Rs 7,26,211
Gross Income- Rs 55,00,000
Tax Payable:
As per current Concessional tax regime Rs 15,87,300
As per proposed Concessional tax regime Rs 15,27,240
As per old tax regime Rs 15,69,316
For Senior Citizen between age of 60-80 years:
Gross Income- Rs 7,00,000
Tax Payable:
As per current Concessional tax regime Rs 33,800
As per proposed Concessional tax regime NIL
As per old tax regime Rs 20,301
Gross Income- Rs 10,00,000
Tax Payable:
As per current Concessional tax regime Rs 78,000
As per proposed Concessional tax regime Rs 54,600
As per old tax regime Rs 28,621
Gross Income- Rs 20,00,000
Tax Payable:
As per current Concessional tax regime Rs 3,51,000
As per proposed Concessional tax regime Rs 2,96,400
As per old tax regime Rs 2,77,971
Gross Income- Rs 35,00,000
Tax Payable:
As per current Concessional tax regime Rs 8,19,000
As per proposed Concessional tax regime Rs 7,64,400
As per old tax regime Rs 7,23,611
Gross Income- Rs 55,00,000
Tax Payable:
As per current Concessional tax regime Rs 15,87,300
As per proposed Concessional tax regime Rs 15,27,240
As per old tax regime Rs 15,66,456
For Super Senior Citizen (above 80 years):
Gross Income- Rs 7,00,000
Tax Payable:
As per current Concessional tax regime Rs 33,800
As per proposed Concessional tax regime NIL
As per old tax regime Rs 9,901
Gross Income- Rs 10,00,000
Tax Payable:
As per current Concessional tax regime Rs 78,000
As per proposed Concessional tax regime Rs 54,600
As per old tax regime Rs 18,221
Gross Income- Rs 20,00,000
Tax Payable:
As per current Concessional tax regime Rs 3,51,000
As per proposed Concessional tax regime Rs 2,96,400
As per old tax regime Rs 2,77,971
Gross Income- Rs 35,00,000
Tax Payable:
As per current Concessional tax regime Rs 8,19,000
As per proposed Concessional tax regime Rs 7,64,400
As per old tax regime Rs 7,13,211
Gross Income- Rs 55,00,000
Tax Payable:
As per current Concessional tax regime Rs 15,87,300
As per proposed Concessional tax regime Rs 15,27,240
As per old tax regime Rs 15,55,016