Want instant gratification? Old Vs New Tax Regime?
So, some people asked me which Tax Regime is better for them. Can they get more salary in hand if they do not make those compulsory investments?
Well, the answer is that it depends on their gross pay and the quantum of investments they decide to make.
For young individuals starting their careers and if they are married, then it does make sense to make the following investments
1. Term Plan
2. Health Insurance ( for up to 5 lakhs initially, then 10 lakhs as you grow in age)
3. NPS … it’s a fill it, shut it, forget it investment option and a good plan for your retirement ( more for a later date).
Now coming to the lesser tax outgo regime. You will need to examine it on a case to case basis.
Here are 3 examples of individuals with gross salaries of 13L, 18L and 20L, shared in the document below.
E.g. a person with a gross pay of 18L pays less tax in the new regime, despite availing all deductions eligible in the old tax regime. So use the calculator given below or any income tax calculator.
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And can you change to the more advantageous regime? Yes for an individual have income from salary can change the tax regime each year. (as per latest budget)
Given below is the link for calculating your tax by eztax
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