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Tejas Chokshi  |126 Answers  |Ask -

Tax Expert - Answered on Apr 25, 2023

CA Tejas Chokshi has over 20 years of experience in financial planning, income tax planning, strategic and risk advisory, banking and financial products and accounting and auditing.
He is an information system auditor, a forensic auditor and concurrent bank auditor.
Chokshi, who has a master’s degree in management, audit and accounting from Gujarat University, has completed his CA from the Institute of Chartered Accountants of India.... more
SB Question by SB on Feb 09, 2023Hindi
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My current salary is 23 lakh per annum. I am investing Rs. 1.5 lakh under 80C & also have home loan. If my salary remains same for next FY, which tax regime will be more suitable for me?

Ans: Based on the information provided, you are eligible to choose between the old and new tax regimes.

Under the old tax regime, you can claim deductions under Section 80C up to Rs. 1.5 lakh and interest paid on home loan up to Rs. 2 lakh. Additionally, you can claim deductions under other sections such as medical insurance premium, donations, etc. However, your tax slab rate will be based on your income, and you will be taxed accordingly.

Under the new tax regime, you cannot claim deductions under Section 80C, home loan interest, or other sections. Instead, you will have lower tax slab rates. For your income level, the tax slab rate for the new regime is 20%, which is lower than the old regime.

To determine which regime is more suitable for you, you will need to calculate your tax liability under both regimes. However, based on the information provided, it seems like the new regime may be more beneficial for you as the tax slab rates are lower than the old regime. You can use an online income tax calculator to determine your tax liability under both regimes and make an informed decision.
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.
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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.

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