Which tax regime is better for 10 lakhs CTC?
10 lakhs will pay the same tax under both the new and old regimes. This means that if you claim deductions and exemptions totaling less than Rs. 1,87,500 in a year, the new tax regime will be more beneficial to your income tax bracket.
How much tax do I pay on 10 LPA?
Tax rate for individuals (below 60 years) and HUFs:
| Tax Slabs | Tax Rates |
|---|---|
| Income up to Rs.2.5 lakhs | NIL |
| Income between Rs.2.5 lakhs and Rs.5 lakhs | 10\% of amount exceeding Rs.2.5 lakhs |
| Income between Rs.5 lakhs to Rs.10 lakhs | 20\% of amount exceeding Rs.5 lakhs |
| Income above Rs.10 lakhs | 30\% of amount exceeding Rs.10 lakhs |
How is 80C investment calculated?
Enter your gross taxable income (Rs.) Your gross taxable income after considering all eligible tax deductions except deduction under section 80C is (Rs.) Amount invested/paid for by you to claim deduction under section 80C. Note: Aggregate deductions under Sections 80C, 80CCC and 80CCD shall not exceed Rs 1.50 lakh.
What is 80CCD?
Section 80CCD of the Income Tax Act, 1961 focuses on income tax deductions that individual income tax assesses are eligible to avail on contributions made towards the New Pension Scheme (NPS) and Atal Pension Yojana (APY). NPS is a notified pension scheme offered by the Central Government.
Which is better new tax regime or old tax regime?
Reduced tax rates and compliance: The new regime provides for concessional tax rates vis-à-vis tax rates in the existing or old regime. Further, as most of the exemptions and deductions are not available, the documentation required is lesser and tax filing is simpler.
When should I opt for new tax regime?
Not age-biased: The new income tax regime is available to every individual irrespective of his age i.e., even senior and super senior citizens can opt-in for the new tax regime. Rebate u/s 87A: Rebate is available to resident individuals having total income of not more than ₹5 lakh in both tax regimes.
How is taxable income calculated?
Following is the procedure for the calculation of taxable income on salary: Gather your salary slips along with Form 16 for the current fiscal year and add every emolument such as basic salary, HRA, TA, DA, DA on TA, and other reimbursements and allowances that are mentioned in your Form 16 (Part B) and salary slips.
Which tax regime is better for 12 lakhs salary?
Old vs New Tax regime: For annual income up to Rs 12.5 Lakhs
| Annual Income of Rs.12,50,000 (with exemption) | ||
|---|---|---|
| Annual Income | 1250000 | |
| Income tax slab | Tax Rate | Tax (Rs.) |
| Up to Rs.2,50,000 | 0 | 0 |
| 250001 – 500000 | 5 | 12500 |
How much tax do I pay on 15 lakhs?
Frequently Asked Questions ( FAQ’s )
| Income Slab | Applicable Tax Rate |
|---|---|
| Above Rs 7.5 lakh and up to Rs 10 lakh | 15\% |
| Above Rs 10 lakh and up to Rs 12.5 lakh | 20\% |
| Above Rs 12.5 lakh and up to Rs 15 lakh | 25\% |
| Above Rs 15 lakh | 30\% |
What is the flat tax rate for 6 5 LPA?
This flat tax rate is far lower than the tax slab that your salary of 6.5 LPA would fall under with the existing tax regime – 20\%. However, the important point to consider here is that the new tax regime does not allow taxpayers to avail various common and popular deductions. Hence, your options with tax saving for 6.5L income become limited.
How can I save tax if my salary is under 10 lakhs?
How can I save tax if my salary is under 10 lakhs? 1 Exhaust your 80 C limit of Rs 1,50,000 2 Reduce your medical expenditure. Invest in health insurance and avail the deduction 3 Claim home loan interest 4 You will get an additional tax benefit if you are an NPS contributor 5 Avail the standard deduction if you are a salaried person More
What is the income tax for 8 lakhs in India?
If your salary is Rs 8 lakh per annum and you opt for the new income tax India regime, your income tax will be Rs 46,800. This will be without any exemptions/deductions. You can save Rs 28,600 more in comparison to the old regime.
How do I use the tax saving calculator?
The tax saving calculator consists of a formula box, where you enter the total taxable income, and your current investments or expenses under Section 80C. The tax saving calculator shows the taxes you save by utilising the relevant Section.