Home > Money > Question

Sign In | Create an account

Language:

Now in हिन्दी too

Need Expert Advice?Our Gurus Can Help

Should I Choose the Old or New Tax Regime with a 40 Lakh Salary?

Anil Rego |388 Answers |Ask -Follow

Financial Planner - Answered on Jul 26, 2024

Anil Rego is the founder of Right Horizons, a financial and wealth management firm. He has 20 years of experience in the field of personal finance.
He’s an expert in income tax and wealth management.
He has completed his CFA/MBA from the ICFAI Business School.... more

Question by MOHAN on Jul 26, 2024Hindi

Money

40 lacs income p.a. which regime is better

Ans: Hi,
For the income mentioned by you, assuming that one takes all the deductions available under old tax regime, the old tax regime allows you to save some tax but not by a huge margin. Also, please note that going forward the Government might make more changes in the new tax regime to benefit larger interests. I hope this answers your question
Best Regards,
Anil Rego,
Founder & CEO,
Right Horizons

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.

MoneyReply

You may like to see similar questions and answers below

Mihir Tanna |1018 Answers |Ask -Follow

Tax Expert - Answered on Feb 15, 2023

Question by Ani - Feb 01, 2023Hindi

Money

For an annual income of 30 lakhs and with 80C deduction of 1.5 lakhs PPF and nothing much on other deductions. Which regime would be better?

Ans: For person earning income of 30 lakhs and deduction of PPF of 1.5 lacs, tax liability under old regime will be Rs.667500 and under new tax regime it will be Rs.600000 as per Budget proposal for FY 23-24. So new tax regime more beneficial as all tax benefits are not taken.

Mahesh Padmanabhan |124 Answers |Ask -Follow

Tax Expert - Answered on Feb 02, 2023

Question by Amit - Feb 01, 2023Hindi

Money

As there are two tax regimes still applicable, please suggest which regime will benefit an individual if he/she is earning approximately 9.6 lac per annum

Ans: Hi Amit
In order to compare between the two options, it would be pertinent to know the quantum of deductions that the individual could claim under the old tax regime.

In case you assume that the total amount of deductions being claimed under the old tax regime is say Rs. 3 Lakhs then you are comparing a taxable income of say Rs. 6.6 Lakhs under the old tax regime vis-a-vis say, a taxable income of about Rs. 9.10 Lakhs under the new tax regime.

With this example, your tax under the old regime may be about Rs. 46,000 and that under new tax regime may be about Rs. 48,000. So the old regime may look good in this scenario.

You would need to work out the correct numbers with right deduction details as that would change the direction of selection of the tax regime option

Mihir Tanna |1018 Answers |Ask -Follow

Tax Expert - Answered on Feb 15, 2023

Question by ravindra - Feb 03, 2023Hindi

Money

Sir My gross salary is rs 9 lacs. Which regime should I opt for.

Ans: For person not taking advantage of all tax saver investments/deductions, new tax regime is beneficial as per proposal of Budget for FY 23-24.

Mihir Tanna |1018 Answers |Ask -Follow

Tax Expert - Answered on Feb 28, 2023

Question by Chandan - Feb 09, 2023Hindi

Money

I have salary+ other source(FD , S/B interest) income of 30 lacs p.a. Which regime is better for me.. I don't have any home loan or nps, So considering only 80C , what will be the tax burden in old and new regime..

Ans: Person having taxable income around 30 lacs and take deduction less than 4.25 lacs from housing loan/80C/80D, can opt for new tax regime as new slab rate is likely to be beneficial as per budget proposed for FY 2023-24

In future, you can calculate the tax from following link :

https://incometaxindia.gov.in/Pages/tools/115bac-tax-calculator-finance-bill-2023.aspx

Latest Questions

Radheshyam Zanwar |1225 Answers |Ask -Follow

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Feb 22, 2025

Asked by Anonymous - Feb 21, 2025Hindi

Career

Sir I'm a pcb student but in cet from I have apper for pcm in my 12 i have dropped maths

Ans: Hello dear
If you have dropped Maths, then how can appear PCM CET? Your question is not clear. Please ask again in the follow-up section.
If you like the reply, please follow me else ask again without hesitation.
Thanks
Radheshyam

Radheshyam Zanwar |1225 Answers |Ask -Follow

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Feb 22, 2025

Asked by Anonymous - Feb 21, 2025Hindi

Career

Can I get nit trichy with 99.6 percentile in general category for admission into CSE

Ans: Hello dear.
Your chances are bright to get CSE in any tier 1 NIT also in Trichy.

If you like the reply, please follow me else ask again without hesitation.
Thanks
Radheshyam

Radheshyam Zanwar |1225 Answers |Ask -Follow

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Feb 22, 2025

Question by Prantika - Feb 21, 2025Hindi

Career

I got 94.15 percentile in jee 2025, general category,i just wanted to ask should i prepare for mains 2 + advance or just mains 2

Ans: Hello Prantika
Please prepare for JEE (Mains)-2 only.

If you like the reply, please follow me else ask again without hesitation.
Thanks
Radheshyam

Radheshyam Zanwar |1225 Answers |Ask -Follow

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Feb 22, 2025

Asked by Anonymous - Feb 22, 2025Hindi

Career

I got 94.83 percentile in jee main 2025 first attempt pls suggest me the colleges and it's possible branches I am general ews

Ans: Hello Dear.
With a score of 94.83, you can get admission to top engineering branches in reputed colleges. There are many branches and you have to choose as per your interest. Please do not choose the branch on the advice of any counselor. Your choice matters more.
If you like the reply, please follow me else ask again without hesitation.
Thanks
Radheshyam

Radheshyam Zanwar |1225 Answers |Ask -Follow

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Feb 22, 2025

Question by Sanjiv - Feb 22, 2025Hindi

Career

My son got 99.30 in jee mains 2025.Home town Haryana.Whuch is best CSE for him.

Ans: Hello Sanjiv
Congratulations for scoring 99.30 %tile. Your son has a strong chance of getting CSE in tier 1 NITs. Best of luck for his bright future.
If you like the reply, please follow me else ask again without hesitation.
Thanks
Radheshyam

Radheshyam Zanwar |1225 Answers |Ask -Follow

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Feb 22, 2025

Asked by Anonymous - Feb 22, 2025Hindi

Career

My son in jee session 1. 24 Jan2025 2nd batch. He got NTA score 46.4037710 pl what percentile he get and any good colleges eligible for this.

Ans: Hello.
Depending on his score, it is difficult to get admission to premier institutions like NITs, IIITs, or GFTIs but several reputable private engineering colleges accept students with lower JEE Main scores. Please locate the reputed private college nearby you or in your state or if your financial position is sound, you can keep the options open to pan India. Some of the options are (1) Heritage Institute of Technology, Techno India University, Institute of Engineering and Management (IEM) (Kolkata) (2) Anurag University, AAR Mahaveer Engineering College (Hyd) (3) Bangalore Institute of Technology, R.V. College of Engineering, M.S. Ramaiah Institute of Technology (Bengaluru).

If you like the reply, please follow me else ask again without hesitation.
Thanks
Radheshyam

Dr Nagarajan Jsk |255 Answers |Ask -Follow

NEET, Medical, Pharmacy Careers - Answered on Feb 22, 2025

Asked by Anonymous - Feb 19, 2025Hindi

Career

Should I pursue data science after 12th standard. Will it be of lesser use due to AI

Ans: Hi, It would be better to complete a science degree first. After finishing your science degree, consider pursuing a data science course as an additional qualification while enrolled in your postgraduate studies. Data science alone may not be sufficient for your career.

Dr Nagarajan Jsk |255 Answers |Ask -Follow

NEET, Medical, Pharmacy Careers - Answered on Feb 22, 2025

Question by Sivakamy - Dec 03, 2024Hindi

Career

My rank in NEET PG is 19727 and I am interested in MD psychiatry.. Will I get a seat in a Government college in Karnataka? I am a domicile of Karnataka

Ans: Hi Sivakamy,

You mentioned only the NEET PG score, but that alone is not sufficient for admission to the course. Other factors are also considered in the admission process. Therefore, it's difficult to address your query with the limited information provided.

If you have more details, please share them, and I'll do my best to help.

Rajesh Kumar Singh |88 Answers |Ask -Follow

IIT-JEE, GATE Expert - Answered on Feb 22, 2025

Asked by Anonymous - Feb 22, 2025Hindi

Career

My son got 99.57 percentile in JEE 2025 . Should he now study for advance or mains , as CS in top NIT will difficult. Secondly what is the scope of Aerospace engineering if done from Top NIT

Ans: Aerospace engineering has limited seats and demand is High.

Rajesh Kumar Singh |88 Answers |Ask -Follow

IIT-JEE, GATE Expert - Answered on Feb 22, 2025

Asked by Anonymous - Feb 21, 2025Hindi

Career

95.62 percentile in jee mains session 1 ews candidates admission at daiict

Ans: May be, Good luck

See more questions »

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

Video Reply
Audio Reply

WhatsApp
Facebook
Twitter
Copy link

Delete

Close

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus

Sign up

email

uname

mobile no

Country Code

Mobile number

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

LOGIN

x