Post Budget 2020, everyone is trying to figure out if they should opt for the existing tax regime and continue availing tax-exemptions and deductions or switch over to the new tax regime with lower tax rates (sans tax exemptions and deductions) and lesser paper work. The biggest question in the mind of salaried individuals earning Rs 10 lakh is which tax structure will benefit them more. If you are a salaried individual earning an annual income of Rs 10 lakh, the table below shows you the total amount of deductions and exemptions you will have to claim so that your tax liability remains the same in both tax regimes. Particulars Tax payable in Existing Regime Tax payable in New Regime Basic Salary + DA 3,88,600 3,88,600 Other Taxable Allowances 6,11,400 6,11,400 Gross Salary 10,00,000 10,00,000 Standard Deduction -50,000 – Income under the head salary 9,50,000 10,00,000 Chapter VIA deductions -1,37,500 – Income under the head salary 8,12,500 10,00,000 Income Tax (Rebate u/s 87A is NIL) 75,000 75,000 Cess @ 4% 3,000 3,000 Total tax, surcharge and education cess 78,000 78,000 Source: EY India As given in the table above, if you are able to claim total deduction of Rs 1,… Read full this story
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