IT Return: How new tax regime (section u/s 115BAC is better in respect of tax outflow?
For an income of Rs 12,50,000, the new tax regime is marginally beneficial. However, if you claim further deductions for health insurance, investment in NPS, education loan and so on, the existing regime will be helpful in respect of tax savings.
| Income (Rs) | Old regime (Rs) | New regime (Rs) | Tax Difference (Rs) | |
| Salary | 1,250,000 | 12,50,000 | 12,50,000 | |
| Less: Standard deduction | 50,000 | 50,000 | – | |
| Less: Professional tax | 2,400 | 2400 | – | |
| Gross total income | 1,197,600 | 11,97,600 | 12,50,000 | |
| Less: Deduction u/s 80C | 150,000 | 1,50,000 | – | |
| Total income | 1,047,600 | 1,047,600 | ||
| Income tax | 126,780 | 125,000 | ||
| Add: Education cess @ 4% | 5,071 | 5,000 | ||
| Total tax | 131,851 | 130,000 | 1,851 |
