Hi,
You can save approximately INR 78000 as tax outgo by choosing New regime.
New Income Tax Regime
Dear sir i am employed in Govt PSU and my total annual income is more than 15 lakh. i do not claim deductions towards interest paid for home loan, HRA and LTC. whether it will be beneficial to switch to new tax regime and how much tax i will save if compared with existing tax regime? thanks.
Asked 5 years ago in Income Tax
after exercising this option to switch over to new tax regime, will i be permitted to switch back to existing regime within same year or next year? (i have no other income source)
Asked 5 years ago
Hi
Please share details of your deductions under chapter VI A I.e. 80 C , 80 D, etc.
You must be having PF contribution from employee, LIC etc?
Hi Sir, for people not claiming Deductions and Exemptions in old regime, the New Regime will always be beneficial.
Once you exercise the Option to switch to new regime, it's irreversible. You need to continue in the New Regime and can never come back to old regime
Hello,
With the information provided by you in your query, I can say that the new regime would be beneficial for you.
To confirm the above statement and give you the approx amount of Tax that would be saved, I would need the approx Salary Amount, Deduction to be availed u/s. 80C, 80CCD(2)(Employer's contribution to NPS), 80D.
Even if I assume that your salary to be Rs. 15 Lakhs and claiming Full Deduction u/s. 80C, Std. Ded of Rs. 50,000, Prof. Tax, 80D, 80TTA and 80CCD(2) NPS of Rs. 50,000, the new regime would be beneficial for you by Rs. 1,300 approx.
I hope that this answer satisfies your requirements. For further understanding, you can contact us directly at or take a phone consultation.
Regards,
CA Hunny Badlani
Considering new tax refund, you tax liability would be 1.95 lacs (including cess).
However, even if you're having 1.5 lac 80C deduction in old regime, tax would be 2.1 lacs (including cess). You will have a standard deduction of 50,000.
So, new tax regime would be beneficial for you.
The schemes are optional on year-to-year basis. You may switch over to the scheme which is beneficial to you.
No, you can't switch back to existing regime within same year or next year.
Yes, you can select each year if you are salaried with no business income.
Prima facie the new regime would be beneficial.
How much saving would depend on the calculation.
You can read here for an initial knowledge: https://www.taxontips.com/2020/02/01/why-you-should-not-opt-for-new-tax-rates/
However for detailed working you must consult a profession personally.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
Yes if you are just earning salary income you can switch every year.
- If you don not claim any deductions u/s 80C then it is beneficial to switch over to new tax regime.
- Yes you can change the option every year.
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