{"id":144,"date":"2021-10-02T10:17:39","date_gmt":"2021-10-02T10:17:39","guid":{"rendered":"https:\/\/vcarefirst.in\/blog\/?p=144"},"modified":"2021-10-02T10:42:15","modified_gmt":"2021-10-02T10:42:15","slug":"old-vs-new-tax-regime","status":"publish","type":"post","link":"https:\/\/vcarefirst.in\/blog\/2021\/10\/02\/old-vs-new-tax-regime\/","title":{"rendered":"OLD vs NEW TAX REGIME"},"content":{"rendered":"\n<p><strong>Comparison Of New Tax Regime Vs Old Tax Regime<\/strong><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>With the introduction of the\u00a0new tax regime, comes the confusion of which one is suitable for you. As a taxpayer, it is difficult to identify which of the two regimes is better and relevant to your income.<br><br>Before that you need to find answers to some questions<\/p>\n\n\n\n<p>What is your income source?<\/p>\n\n\n\n<p>Are you a salaried individual?<\/p>\n\n\n\n<p>Are you running your own business or<\/p>\n\n\n\n<p>Are you an entrepreneur or professional?<\/p>\n\n\n\n<p>The current tax regime is still in place, and as a taxpayer you have the option to choose the best one for you, that is either the old tax regime or the new tax regime. The Government has not enforced compulsion to switch to the new tax regime.<\/p>\n\n\n\n<p>Through this article, we are trying to explain the OLD vs NEW tax&nbsp;regimes and the best relevant way forward for your income structure.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>New Tax Regime<\/strong><\/p>\n\n\n\n<p>Let&#8217;s understand the new tax regime.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>flexibility to the taxpayer to invest their money as they prefer.<\/li><li>no obligatory requirement to invest in tax saving schemes and insurance plans which may not be in alignment with their financial goals.<\/li><li>&nbsp;multiple tax slabs, you as the taxpayer will fit into the tax slab that best meets your yearly income.<\/li><\/ul>\n\n\n\n<p>The Exemptions &amp; Deductions<\/p>\n\n\n\n<p>With the new tax regime, several exemptions and deductions have been removed. Following is a list of Exemptions and Deductions that have been retained and also that have not been retained in New Tax Regime.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Retained in New Regime<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Deduction u\/s 80CCd(2)(employer contribution to NPS)<\/li><li>Section 80JJAA (for new employment) can still be claimed<\/li><li>Transport Allowance for differently abled Employees<\/li><li>Conveyance Allowances for performance of Office Duties<\/li><li>Any Allowance for the cost of Travel\/tour\/transfer<\/li><li>Daily Allowance given to Employees under certain conditions.<\/li><\/ul>\n\n\n\n<p><\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Not Retained in New Regime<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Leave Travel Allowance<\/li><li>House rent allowance<\/li><li>Conveyance Allowance<\/li><li>Daily Expenses in the course of Employment<\/li><li>Relocation Allowance<\/li><li>Helper Allowance<\/li><li>Children Education Allowance<\/li><li>Other Allowances {Section 10(14)}<\/li><li>Standard deduction on Salary &#8211; Rs 50,000<\/li><li>Deductions available under Section 80TTA\/TTB<\/li><li>Entertainment allowance deduction and professional tax<\/li><li>Tax relief on interest paid on home loan for self-occupied or vacant property u\/s 24<\/li><li>Deduction of Rs 15000 allowed from family pension under clause (iia) ( Section 57)<\/li><li>Tax-saving investment deductions under Chapter VI-A<\/li><\/ul>\n\n\n\n<p><\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Income Tax Slab Old vs New:&nbsp;<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Income slabs (Rs)<\/td><td>Old Regime&nbsp; (with exemptions and deductions)<\/td><td>New Regime (without exemptions and deductions)&nbsp;&nbsp;<\/td><\/tr><tr><td>Up to 2.5 lakh<\/td><td>Nil<\/td><td>Nil<\/td><\/tr><tr><td>2.5-5 lakh<\/td><td>5%<\/td><td>5%<\/td><\/tr><tr><td>5-7.5 lakh<\/td><td>20%<\/td><td>10%<\/td><\/tr><tr><td>7.5-10 lakh<\/td><td>20%<\/td><td>15%<\/td><\/tr><tr><td>10-12.5 lakh<\/td><td>30% &nbsp;<\/td><td>20%<\/td><\/tr><tr><td>12.5-15 lakh<\/td><td>25%<\/td><\/tr><tr><td>Above 15 lakh<\/td><td>30%<\/td><\/tr><\/tbody><\/table><\/figure>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>Comparison Of New Tax Regime Vs Old Tax Regime With the introduction of the\u00a0new tax regime, comes the<!-- AddThis Advanced Settings generic via filter on get_the_excerpt --><!-- AddThis Share Buttons generic via filter on get_the_excerpt --><\/p>\n","protected":false},"author":3,"featured_media":152,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-144","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/vcarefirst.in\/blog\/wp-json\/wp\/v2\/posts\/144","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vcarefirst.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vcarefirst.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vcarefirst.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/vcarefirst.in\/blog\/wp-json\/wp\/v2\/comments?post=144"}],"version-history":[{"count":9,"href":"https:\/\/vcarefirst.in\/blog\/wp-json\/wp\/v2\/posts\/144\/revisions"}],"predecessor-version":[{"id":165,"href":"https:\/\/vcarefirst.in\/blog\/wp-json\/wp\/v2\/posts\/144\/revisions\/165"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vcarefirst.in\/blog\/wp-json\/wp\/v2\/media\/152"}],"wp:attachment":[{"href":"https:\/\/vcarefirst.in\/blog\/wp-json\/wp\/v2\/media?parent=144"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vcarefirst.in\/blog\/wp-json\/wp\/v2\/categories?post=144"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vcarefirst.in\/blog\/wp-json\/wp\/v2\/tags?post=144"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}