Income Tax Saving: Finance Minister Nirmala Sitharaman (FM Nirmala Sitharaman) has made it very attractive by giving more exemptions in the new tax regime in the budget presented on February 1. After reducing the slab rates, now every class will be helped in saving tax. We are telling you that if a person earns 10 lakh, 50 lakh or 1 crore rupees annually, how much tax he can save in the new tax regime as compared to the old one.
If we talk about small income ie Rs 6 lakh per annum, then in the old tax regime, if you do not make any tax saving investment, then you will have to pay income tax of Rs 23,400 on this much income. But, if you adopt the new tax regime, then your Rs 6 lakh will be completely out of the tax net. That is, you will directly save tax of Rs 23,400.
If a person earns Rs 10 lakh annually, then under the new regime, he will have a total tax liability of Rs 54,600. On the other hand, if you choose the old tax slab, then you will have to pay tax of Rs 78,000 on this much income. In this way, you can save tax of Rs 23,400 under the new slab.
If you earn 50 lakh rupees annually, then you will reach the high bracket of 30 percent and according to the new tax regime, there will be a tax liability of Rs 12,32,400. For those adopting the old bracket, income tax of Rs 12.87 lakh will be made on earning Rs 50 lakh. That is, now you will be able to save Rs 54,600 in the new tax regime as compared to the old one.
If someone’s earning is Rs 1 crore annually, then his income will be included in the high tax bracket ie 30 per cent slab. Rs 30,71,640 will be taxed on this income if you adopt the new tax regime. At the same time, the total tax liability will come to Rs 31,31,700 on those who are associated with the old system. That is, in the new system, now you can save income tax of Rs 60,060 as compared to the old one.
How much liability is 2 crores If a person earns 2 crores annually, then the highest tax rate of 30 percent will be applicable on him. Surcharge will also be imposed on this. Thus the total tax liability will be Rs 67,99,260, if you opt for the new tax regime. On the other hand, those adopting the old tax regime will have to pay a total income tax of Rs 68,62,050. In this way you will directly save Rs 62,490.
