New Tax Regime: Can I Save Taxes on My 66 Lakh Salary?

Ans: Hi Prasanna
While the increase in limit from Rs. 5 Lakhs to Rs. 7 Lakhs is merely to accomodate the lower income segment and does not really make a difference to the highest tax bracket individuals. In this context, earlier, individuals whose income did not exceed Rs. 5 Lakhs had to pay Nil tax whether or not they opted for the new regime. The budget proposals has enhanced this limit to Rs. 7 Lakhs for individuals who opt for new tax regime but the earlier limit of Rs. 5 Lakhs would remain for individuals who opt for the old regime.

The slab rates for new tax regime have been tweaked to provide a small reduction in the tax liability as compared to the previous year.

Also, standard deduction benefit that was not available to an individual opting for new tax regime has now been allowed.

All in all, opting for new tax regime may now be beneficial.

Ans: If person earn income from salary of Rs.60,00,000, old regime will be beneficial as per proposal of Budget 2023. If person is paying housing loan and making tax saver investment; old tax regime will be more beneficial after taking deduction of Rs 2,00,000 for interest on housing loan + Rs1,50,000 for 80C+ Rs.20,000 for mediclaim + Rs.50,000 for salary standard deduction.

Ans: This year as also next year, old tax regime will be beneficial to you assuming you avail the 80C and 80CCD(1B)benefits.

Ans: If your Income (F/Y 2025-26) remains less than Rs.4.00 (L), you may not file your ITR. However, if your Income Crosses this limit, you will have to file your ITR, may be without payment of Tax.
Most welcome for any further clarifications. Thanks.