5 Lacs in FY 2021-22īased on Old and New Tax Slab Rates, you are liable to pay Rs. Let’s say your Net Taxable Income equals Rs. Tax Rebate u/s 87A will be allowed in both Old and New Tax Regime. This is achievable by making investments under various sections. You will be eligible for Tax Rebate u/s 87A when your taxable income is below Rs. Choose the one that helps you pay less income tax.ĪLSO READ: Income Tax Calculation FY 2022-23 in Excel Are you eligible for Tax Rebate u/s 87A? So you should make your investments according to your total income and based on the calculations of income tax in both regimes. Blue line (old regime with investments) is still above green line which shows that even after investments you’ll more more income tax with old slab rates compared to new slab rates. Even after making investments with maximum limits in different sections, you’ll still be paying more taxes with old tax regime compared to new tax regime.īelow is the graph showing the comparison of income vs income tax: Income vs income tax graph with investmentsĪs seen above, green line depicts income tax with new tax regime, which is low when your income moves greater than 12 Lacs. 12 Lacs, there is not much option to save maximum income tax. 12 Lacs, you can opt for Old Tax Regime, and make some Tax saving investments and Save Income Tax.īut if your income is above Rs. Every individual is having different incomes in a Financial Year. To answer this question, it depends on person to person. In case you want to claim various deductions to save income tax, you might have to check how much income tax can be saved using Old Tax Regime. In this way, the calculator can help you to compare your tax outgo and by iteratively entering the investment amount, you can decide how much you can invest more to pay less income tax if selecting Old Tax Regime.īelow is the table showing Old and New Tax Slab Rates for FY 2021-22: IncomeĪs seen above, New Tax regime has reduced tax slab rates which means you will be paying less income tax, if you are not opting for any investment deductions. 50,000 is only available in Old Tax Regime, and not in New Tax Regime This means that Standard Deductions of Rs.This is because new tax regime are reduced tax slab rates. New Tax Regime does not allow you to claim any investment deductions to save income tax.It is important to note that investment deductions are available only in Old Tax Regime.You should select tax regime based on which you’ll be paying less income tax.
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