Old Vs New Tax Regime It is the duty of every taxpayer in the country to pay tax on time. Now the government has given two options to pay the tax. Many people remain confused about the new tax system and the old tax system. In this article, let us know in which tax system you can save more money.
New Delhi. 2023 is about to end. In such a situation, if you have not yet filed the income tax return, then you can file the return with penalty till December 31, 2023. Let us tell you that in Budget 2023, the government has decided to introduce a new tax system. Many people are quite confused about the new tax regime as to which one should be selected between the old and the new tax regime.
Tax calculator
You can calculate tax in a very easy way. The Income Tax Department has introduced a tax calculator for the taxpayer. With the help of this calculator, you can easily know in which tax slab you fall. With the help of tax calculator, you can choose the best one for yourself from both the tax regimes. Let us tell you that you can claim tax deduction in both the tax regimes.
You can claim this much amount
If your salary is Rs 10 lakh per annum and you have taken a home loan for your house for which you pay an interest of Rs 2 lakh annually. In such a situation, you can claim tax deduction in both the tax regimes. You can increase your income to Rs 9,50,000 by claiming tax deduction.
In the old tax regime, the interest paid on home loan is also deducted from the income, that is, after this your net income will be Rs 7 lakh 50 thousand whereas in the new tax regime it will be Rs 9,50,000. This is because no exemption is given on home loan interest in the new tax system.
This much tax will have to be paid
Based on the old tax system, you will have to pay tax of Rs 33,800 on Rs 6 lakh. In the new tax system, you will have to pay tax of Rs 54,600. In such a situation, you can save up to Rs 20,800 from the old tax system. Let us tell you that in the old tax system, you can also claim HRA.
In the old tax system, you can claim deduction up to Rs 3 lakh.
