LAST MINUTE TAX SAVING OPTIONS FOR SALARIED INDIVIDUALS IN KARAWAL NAGAR
FOR FY 2024-25 (AY 2025-26), YOU HAVE THE OPTION TO CHOOSE BETWEEN THE OLD TAX REGIME (WITH DEDUCTIONS & EXEMPTIONS) OR THE NEW TAX REGIME (LOWER TAX RATES BUT FEWER DEDUCTIONS).
LET'S CALCULATE TAX LIABILITY UNDER BOTH REGIMES BY CLAIMING THE MAXIMUM POSSIBLE DEDUCTIONS AND EXEMPTIONS FOR GROSS SALARY ₹17,24,808.
1. Tax Calculation Under the New Tax Regime (With Maximum Deductions)
The new regime allows very few deductions, but you can still claim:
✅ Standard Deduction = ₹50,000
✅ Employer’s NPS Contribution (Section 80CCD(2)) = Up to ₹1,00,000 (assuming 10% of salary)
✅ EPF Employer Contribution (Exempt up to ₹2.5L per year)
Taxable Income (New Regime)
Gross Salary ₹17,24,808 - ₹50,000 (Standard Deduction) - ₹1,00,000 (NPS)
Taxable Income: ₹15,74,808
Tax Slabs (New Regime)
|
Income Slab |
Tax Rate |
|
Up to ₹3,00,000 |
Nil |
|
₹3,00,001 - ₹6,00,000 |
5% |
|
₹6,00,001 - ₹9,00,000 |
10% |
|
₹9,00,001 - ₹12,00,000 |
15% |
|
₹12,00,001 - ₹15,00,000 |
20% |
|
Above ₹15,00,000 |
30% |
Tax Calculation
- Up to ₹3,00,000 → No tax
- ₹3,00,001 - ₹6,00,000 → 5% of ₹3,00,000 = ₹15,000
- ₹6,00,001 - ₹9,00,000 → 10% of ₹3,00,000 = ₹30,000
- ₹9,00,001 - ₹12,00,000 → 15% of ₹3,00,000 = ₹45,000
- ₹12,00,001 - ₹15,00,000 → 20% of ₹3,00,000 = ₹60,000
- Above ₹15,00,000 (₹74,808) → 30% of ₹74,808 = ₹22,442
Total Tax Before Cess: ₹1,72,442
Add 4% Cess: ₹6,898
Total Tax Payable (New Regime): ₹1,79,340
2. Tax Calculation Under the Old Tax Regime (Claiming Maximum Deductions)
✅ Standard Deduction = ₹50,000
✅ Section 80C (PF, ELSS, PPF, NSC, LIC, 5-year FD) = ₹1,50,000
✅ Section 80D (Health Insurance) = ₹25,000
✅ Section 80CCD(1B) (NPS Self Contribution) = ₹50,000
✅ HRA Exemption (assuming ₹3,60,000 yearly rent in Delhi) = ₹2,40,000
✅ Section 80TTA (Savings Account Interest) = ₹10,000
Taxable Income Calculation
Gross Salary ₹17,24,808 - ₹(50,000 + 1,50,000 + 25,000 + 50,000 + 2,40,000 + 10,000)
= ₹12,99,808 (Final Taxable Income)
Tax Slabs (Old Regime)
|
Income Slab |
Tax Rate |
|
Up to ₹2,50,000 |
Nil |
|
₹2,50,001 - ₹5,00,000 |
5% |
|
₹5,00,001 - ₹10,00,000 |
20% |
|
Above ₹10,00,000 |
30% |
Tax Calculation
- ₹2,50,000 - ₹5,00,000 → 5% of ₹2,50,000 = ₹12,500
- ₹5,00,001 - ₹10,00,000 → 20% of ₹5,00,000 = ₹1,00,000
- Above ₹10,00,000 (₹2,99,808) → 30% of ₹2,99,808 = ₹89,942
Total Tax Before Cess: ₹2,02,442
Add 4% Cess: ₹8,098
Total Tax Payable (Old Regime): ₹2,10,540
3. Final Comparison (Old vs. New Regime)
|
Particulars |
Old Regime (Max Deductions) |
New Regime (Few Deductions) |
|
Gross Salary |
₹17,24,808 |
₹17,24,808 |
|
Total Deductions |
₹5,25,000 |
₹1,50,000 |
|
Taxable Income |
₹12,99,808 |
₹15,74,808 |
|
Total Tax Payable (incl. cess) |
₹2,10,540 |
₹1,79,340 |
|
Which is better? |
❌ Higher tax |
✅ Lower tax |
4. Final Recommendation
- The new tax regime is better, as it saves ₹31,200 in tax.
- If you already invest heavily in tax-saving options (₹5.25L), the old regime might be beneficial.
- If you want less hassle with investments and deductions, go with the new regime.
