Confused between New & Old tax regime?

Here’s how a #salaried individual can decide which #taxregime is beneficial for him/her!

·????????The point of indifference lies if the #income is up to INR 5 lakhs. That means if a person is having an income up to INR 5 lakhs shall be indifferent between old and #newtaxregime .

·????????If the income lies between INR 5 Lakhs to INR 7 Lakhs, a person can opt for new taxation regime to avail the benefit of #rebate .

·????????If the income is more than INR 7 Lakhs and up to INR 15 Lakhs, check for amount of (#deductions + #exemptions )** & carefully analyse. Here the amount of deduction would play a significant role.

·????????If the income exceeds INR 15 Lakhs and up to INR 5 Cr,

Opt for Old tax regime if deductions > breakeven#

Opt for New tax regime if deductions < breakeven#

# Breakeven deductions for different income levels :

Income level??????????????????Breakeven deduction limit (exemptions + deductions)**

Up to 5 Lakhs??????????????????Nil tax under both the regimes

INR 6 Lakhs??????????????????????INR 1,00,000

INR 7 Lakhs??????????????????????INR 2,00,000

INR 8 Lakhs??????????????????????INR 2,12,500

INR 9 Lakhs??????????????????????INR 2,62,500

INR 10 Lakhs????????????????????INR 3,00,000

INR 11 Lakhs????????????????????INR 3,25,000

INR 12 Lakhs????????????????????INR 3,50,000

INR 13 Lakhs????????????????????INR 3,62,500

INR 14 Lakhs????????????????????INR 3,75,000

INR 15 Lakhs????????????????????INR 4,08,333

INR 15.5 Lakhs?- 5 Cr????? INR 4,25,000

For #Income beyond INR 5cr, #newtaxregime is preferable due to the lower #surcharge rate of 25% in the new tax regime as compared to 37% in the old tax regime.

#incometax #unionbudget2023 #slabs #newtaxregime #unionbudget #taxpayers #taxrates #taxfacts #tax #directtax #incometaxindia #taxlaw

#surcharge #rebates #taxdeductions