New slabs of Income Tax have been issued and the time to pay the tax has also come well, now in such a time whether to use the new tax system or the old tax system, there is confusion among the salary class people. Even if your salary is up to Rs 10 lakh, you can still file your income tax without paying tax.
Income tax to be paid under the old tax system.
If your salary is 10 lakh rupees and you want to pay tax according to the old tax system, then you can claim your tax in this way. In this, keep some important things in mind as follows.
| Particulars | Amount (Rs) |
| Gross salary income | 10,00,000 |
| Less: House rent allowance (HRA) exemption | 2,40,000 |
| Less: Standard deduction | 50,000 |
| Net salary income | 7,10,000 |
| Add: Interest income from savings accounts | 7,000 |
| Add: Interest income from fixed deposits | 8,000 |
| Add: Dividends from equity shares | 5,000 |
| Gross taxable income | 7,30,000 |
After claiming HRA, now take advantage of the deduction under the old tax system. Which would be something like this. In this, now you will claim your investment, insurance, medical expenditure etc. Which is the best thing about this system.
| Particulars | Amount (Rs) |
| Gross taxable income | 7,30,000 |
| Less: Section 80C deduction | 1,50,000 |
| Less: Section 80D deduction | 25,000 |
| Less: Section 80CCD (1b) | 50,000 |
| Less: Section 80TTA | 7,000 |
| Net taxable income | 4,98,000 |
| Income tax payable | 12,400 |
| Less: Rebate u/s 87A | 12,400 |
| Cess on income tax amount | 0 |
| Final tax amount | 0 |
In this way, under his old tax system, he paid his income tax without any additional payment even on earning Rs.10 lakh.
New Tax Filing System
If you pay this tax with the new tax system, then your tax will be something like this
| Particulars | Amount (Rs) |
| Gross salary income | 10,00,000 |
| Add: Interest income from savings accounts | 7,000 |
| Add: Interest income from fixed deposits | 8,000 |
| Add: Dividends from equity shares | 5,000 |
| Gross taxable income | 10,20,000 |
| Income tax payable | 79,000 |
| Add: Cess @ 4% | 3,160 |
| Final income tax amount | 82,160 |
Experts say that investment and insurance etc. have not been given a place in the new tax system, due to which the Indian economy will suffer in the long run because most people take investment and insurance to save tax, which gives a boost to the country’s economy. And a deposit capital also remains for the people.
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
