New Delhi: Taxpayers with an annual income of up to Rs 7 lakh will save Rs 33,800 in taxes after Finance Minister increased the rebate under the new income tax regime in Union Budget 2023.
However, the old income tax regime that comes with exemptions on certain investments and expenditures will remain attractive for taxpayers who pay house rent or have a home loan.
According to Deloitte India, Partner, Neeru Ahuja, individuals who get a house rent allowance (HRA) from their employer and pay rent for their accommodation are likely to pay lower taxes under the old tax regime.
In addition to HRA deductions, individuals can also claim a deduction on interest on their home loan under the old tax regime if the distance between the two accommodations is more than 40 kilometres, she said.
As per EY, after all possible deductions--HRA exemption, standard deduction, Professional tax, Section 80C, Section 80CCD(1B) and Section 80D, available under the old tax regime, an individual (up to 60 years) will have to pay tax as per the following chart:
Gross Income- Rs 7,00,000
Tax Payable:
As per the current Concessional tax regime Rs 33,800
As per the proposed Concessional tax regime Nil
As per the old tax regime Rs 22,901
Gross Income- Rs 10,00,000
Tax Payable:
As per the current Concessional tax regime Rs 78,000
As per the proposed Concessional tax regime Rs 54,600
As per the old tax regime Rs 31,221
Gross Income- Rs 20,00,000
Tax Payable:
As per the current Concessional tax regime Rs 3,51,000
As per the proposed Concessional tax regime Rs 2,96,400
As per the old tax regime Rs 22,901
Gross Income- Rs 35,00,000
Tax Payable:
As per the current Concessional tax regime Rs 8,19,000
As per the proposed Concessional tax regime Rs 7,64,000
As per the old tax regime Rs 7,26,211
Gross Income- Rs 55,00,000
Tax Payable:
As per the current Concessional tax regime Rs 15,87,300
As per the proposed Concessional tax regime Rs 15,27,240
As per the old tax regime Rs 15,69,316
For Senior Citizens between age of 60-80 years:
Gross Income- Rs 7,00,000
Tax Payable:
As per the current Concessional tax regime Rs 33,800
As per the proposed Concessional tax regime NIL
As per the old tax regime Rs 20,301
Gross Income- Rs 10,00,000
Tax Payable:
As per the current Concessional tax regime Rs 78,000
As per the proposed Concessional tax regime Rs 54,600
As per the old tax regime Rs 28,621
Gross Income- Rs 20,00,000
Tax Payable:
As per the current Concessional tax regime Rs 3,51,000
As per the proposed Concessional tax regime Rs 2,96,400
As per the old tax regime Rs 28,621
Gross Income- Rs 35,00,000
Tax Payable:
As per the current Concessional tax regime Rs 8,19,000
As per the proposed Concessional tax regime Rs 7,64,400
As per the old tax regime Rs 7,23,611
Gross Income- Rs 55,00,000
Tax Payable:
As per the current Concessional tax regime Rs 15,87,300
As per the proposed Concessional tax regime Rs 15,27,240
As per the old tax regime Rs 15,66,456
For Super Senior Citizen (above 80 years):
Gross Income- Rs 7,00,000
Tax Payable:
As per the current Concessional tax regime Rs 33,800
As per the proposed Concessional tax regime NIL
As per the old tax regime Rs 9,901
Gross Income- Rs 10,00,000
Tax Payable:
As per the current Concessional tax regime Rs 78,000
As per the proposed Concessional tax regime Rs 54,600
As per the old tax regime Rs 18,221
Gross Income- Rs 20,00,000
Tax Payable:
As per the current Concessional tax regime Rs 3,51,000
As per the proposed Concessional tax regime Rs 2,96,400
As per the old tax regime Rs 2,77,971
Gross Income- Rs 35,00,000
Tax Payable:
As per the current Concessional tax regime Rs 8,19,000
As per the proposed Concessional tax regime Rs 7,64,400
As per the old tax regime Rs 7,13,211
Gross Income- Rs 55,00,000
Tax Payable:
As per the current Concessional tax regime Rs 15,87,300
As per the proposed Concessional tax regime Rs 15,27,240
As per the old tax regime Rs 15,55,016.