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Hardik Parikh |106 Answers |Ask -Follow

Tax, Mutual Fund Expert - Answered on Jul 31, 2023

Hardik Parikh is a chartered accountant with over 15 years of experience in taxation, accounting and finance.
He also holds an MBA degree from IIM-Indore.
Hardik, who began his career as an equity research analyst, founded his own advisory firm, Hardik Parikh Associates LLP, which provides a variety of financial services to clients.
He is committed to sharing his knowledge and helping others learn more about finance. He also speaks about valuation at different forums, such as study groups of the Western India Regional Council of Chartered Accountants.... more

Question by gd.anand on Jul 29, 2023Hindi

Dear Sir, My annul gross salary is 22 Lakhs and only pay House Rent, is the new Income tax regime or old regime is advisable please

Ans: Dear Mr. Anand,

I hope you're doing well. Based on your annual gross salary of 22 Lakhs and considering that you only pay House Rent, it's important to understand the benefits of both the old and new tax regimes.

In the old tax regime, you can avail of various deductions and exemptions, such as the House Rent Allowance (HRA), which can significantly reduce your taxable income. However, the tax rates are relatively higher.

On the other hand, the new tax regime offers lower tax rates but does away with most deductions and exemptions, including the HRA.

Given your situation, if your HRA forms a significant part of your salary and you are able to claim this exemption, the old regime might be more beneficial for you. However, this is a general suggestion and the actual benefit would depend on various factors including your exact salary structure and the amount of rent you are paying.

I would recommend consulting with a tax advisor who can understand your specific situation better and guide you accordingly.

Please note that this is a general advice and may not apply to your specific situation.

Best Regards

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Question by Vijay - Feb 01, 2023Hindi

Hello sir, Upto this financial year I am paying tentatively Rs238000/- appx as income tax, with annual income about 1650000/- in old tax regime. Whether I should stick to old regime or opt for new one? I don't have housing loan

Ans: Same answer as given earlier: The tax slabs themselves are very broad and your benefits depend on what sections of Income Tax Act are you taking benefit of like 80C, 80G, 80D, 80E, 24B, and HRA.

Instead of looking at broad tax slabs, please calculate yourself at this calculator as pertaining to yourself and you will be able to decide which tax regime is better for you:-
https://cleartax.in/paytax/TaxCalculator

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