BUDGET BYTE – KNOW ABOUT NEW TAX REGIME VS OLD TAX REGIME?

Budget Byte – New tax regime vs Old tax regime??

•  Proposal under New Tax Regime, no tax up to 7 lakh Income vs Under old tax regime no tax up to 7 lakh Income.
•  For Salaried class and the pensioners including family pensioners, it has been proposed to extend the benefit of standard deduction of Rs 50,000 to the new regime.
  Recommended: OVERVIEW OF TAX LITIGATION IN INDIA BY DSRV INDIA
•  Propose Tax Structure for New regime will be as follows –

0-3 Lakh: No Tax

3-6 Lakh: 5%

6-9 Lakh: 10%

9-12 Lakh: 15%

12-15 Lakh: 20%

Above 15 Lakh: 30%

Hence, Government wants to promote new tax regime claimed to be simple tax services with lesser tax rates but without exemptions and deductions. Our analysis shows that if one is claiming deduction of HRA, investments u/s 80C and medical insurance u/s 80D, then in most of these cases old regime will be the obvious choice of an Individual. The default tax regime will be the new tax regime and one has to choose the old tax regime by filling a form unlike presently.

dsrvindia.com

• CA Sanjay Agrawal
• CA Utkarsh Agrawal
  Below is the analysis of old vs propose new regime