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How Can a Private Job Person Save Tax Under the New Tax Regime?

Milind

Milind Vadjikar  |1098 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Sep 13, 2024

Milind Vadjikar is an independent MF distributor registered with Association of Mutual Funds in India (AMFI) and a retirement financial planning advisor registered with Pension Fund Regulatory and Development Authority (PFRDA).
He has a mechanical engineering degree from Government Engineering College, Sambhajinagar, and an MBA in international business from the Symbiosis Institute of Business Management, Pune.
With over 16 years of experience in stock investments, and over six year experience in investment guidance and support, he believes that balanced asset allocation and goal-focused disciplined investing is the key to achieving investor goals.... more
ANIMESH Question by ANIMESH on Sep 13, 2024Hindi
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In New Tax Scheme, How Can a Private Job Person Save Tax by Himself?

Ans: In new tax regime no deductions are applicable, except 25 K extra standard deduction as opposed to 50K allowed in the old regime.

In case you happen to be in the 30% bracket, thumb rule is if your deductions are more then 3.75 Lacs then Old Regime is suitable else new regime is more optimal.
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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Ramalingam

Ramalingam Kalirajan  |8092 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 13, 2024

Asked by Anonymous - Aug 08, 2024Hindi
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how can i save money using new tax regime?
Ans: The new tax regime in India, introduced in the Budget 2020, offers lower tax rates but without the benefit of most deductions and exemptions available under the old tax regime. It’s designed to simplify the tax system and provide an alternative to taxpayers who prefer a straightforward approach to tax calculation.

Comparing Old vs. New Tax Regime
Under the old tax regime, you could reduce your taxable income by claiming deductions under various sections like Section 80C, 80D, HRA, LTA, etc. However, the new tax regime offers a lower tax rate but does not allow most of these deductions.

Here’s a quick comparison:

Old Tax Regime: Allows deductions under various sections like 80C, 80D, HRA, LTA, etc.

New Tax Regime: Offers lower tax rates but without most deductions and exemptions.

Tax Slabs Under the New Regime
The tax slabs under the new tax regime are as follows:

Income up to Rs. 2.5 lakh: No tax

Income from Rs. 2.5 lakh to Rs. 5 lakh: 5% tax

Income from Rs. 5 lakh to Rs. 7.5 lakh: 10% tax

Income from Rs. 7.5 lakh to Rs. 10 lakh: 15% tax

Income from Rs. 10 lakh to Rs. 12.5 lakh: 20% tax

Income from Rs. 12.5 lakh to Rs. 15 lakh: 25% tax

Income above Rs. 15 lakh: 30% tax

Deciding Between Old and New Regime
To decide whether to opt for the new tax regime, consider the following:

Total Income: Higher income levels might benefit more from the lower tax rates in the new regime, especially if you don't claim many deductions.

Deductions Claimed: If you claim significant deductions under the old regime, sticking with it might be more beneficial. If you don’t claim many deductions, the new regime could be better.

Investment Discipline: If you prefer not to invest in tax-saving instruments or if your lifestyle doesn't support certain deductions, the new regime offers simplicity.

Strategies to Save Money in the New Tax Regime
If you decide to opt for the new tax regime, here are a few strategies to maximize your savings:

Income Tax Rebate (Section 87A): If your taxable income is up to Rs. 5 lakh, you can still claim a rebate under Section 87A, which reduces your tax liability to zero.

Avoid Unnecessary Investments: Under the new regime, you are not required to invest in tax-saving instruments like ELSS, PPF, or NSC just for the sake of deductions. This can free up your cash flow for other investments or expenses.

Focus on Direct Investments: You can focus on investments that suit your financial goals rather than being driven by tax-saving needs. This could include mutual funds, stocks, or even building an emergency fund.

Simplified Tax Filing: The new regime simplifies tax filing as you don’t need to track and claim various deductions. This can save you time and reduce the complexity of your tax return.

Optimize Employer Benefits: If you have employer-provided benefits like NPS contributions, you might still want to consider the old regime. However, under the new regime, your take-home salary might be higher since you’re not contributing to tax-saving investments.

Finally
Choosing the new tax regime can simplify your tax planning and may reduce your tax outgo if you don’t rely heavily on deductions. It’s essential to weigh your income, deductions, and financial goals before making the switch. If you're still unsure, you can consult a Certified Financial Planner to evaluate your specific situation and determine the best approach for you.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

..Read more

Latest Questions
Nayagam P

Nayagam P P  |4313 Answers  |Ask -

Career Counsellor - Answered on Mar 10, 2025

Asked by Anonymous - Mar 10, 2025Hindi
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Career
Mere beta ka jee mains 95 hai Nit mil jayega kya Ews cote se
Ans: Here is, How to Predict Your Chances of Admission into NIT or IIIT or GFTI After JEE Main Results – A Step-by-Step Guide

Once the January JEE Main session results was declared, many students and JEE applicants started asking common questions about eligibility for specific institutes (NITs, IIITs, GFTIs, etc.) based on their percentile, category, preferred branch, and home state.

Providing precise admission chances for each student can be challenging. Some reputed educational websites offer ‘College Predictor’ tools where you can check possible college options based on your percentile, category, and preferences. However, for a more accurate understanding, here’s a simple yet effective 9-step method using JoSAA’s past-year opening and closing ranks. This approach gives you a fair estimate (though not 100% exact) of your admission chances based on the previous year’s data.

Step-by-Step Guide to Check Your Admission Chances Using JoSAA Data
Step 1: Collect Your Key Details
Before starting, note down the following details:

Your JEE Main percentile (Convert percentile into Rank withe help of a formula available in Google).
Your category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
Preferred institute types (NIT, IIIT, GFTI)
Preferred locations (or if you're open to any location in India)
List of at least 3 preferred academic programs (branches) as backups (instead of relying on just one option)
Step 2: Access JoSAA’s Official Opening & Closing Ranks
Go to Google and type: JoSAA Opening & Closing Ranks 2024
Click on the first search result (official JoSAA website).
You will land directly on JoSAA’s portal, where you can enter your details to check past-year cutoffs.
Step 3: Select the Round Number
JoSAA conducts five rounds of counseling.
For a safer estimate, choose Round 4, as most admissions are settled by this round.
Step 4: Choose the Institute Type
Select NIT, IIIT, or GFTI, depending on your preference.
If you are open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
It is recommended to check institutes one by one, based on your preferred locations.
Avoid selecting ‘ALL’ at once, as it may create confusion.
Step 6: Select Your Preferred Academic Program (Branch)
Enter the branches you are interested in, one at a time, in your preferred order.
Step 7: Submit and Analyze Results
After selecting the relevant details, click the ‘SUBMIT’ button.
The system will display Opening & Closing Ranks of the selected institute and branch for different categories.
Step 8: Note Down the Opening & Closing Ranks
Maintain a notebook or diary to record the Opening & Closing Ranks for each institute and branch you are interested in.
This will serve as a quick reference during JoSAA counseling.
Step 9: Adjust Your Expectations on a Safer Side
Since Opening & Closing Ranks fluctuate slightly each year, always adjust the numbers for safety.
Example Calculation:
If the Opening & Closing Ranks for NIT Delhi | Mechanical Engineering | OPEN Category show 8622 & 26186 (for Home State), consider adjusting them to 8300 & 23000 (on a safer side).
If the Female Category rank is 34334 & 36212, adjust it to 31000 & 33000.
Follow this approach for Other State candidates Option also and different categories.
Pro Tip: Adjust your expected rank slightly lower than the previous year's cutoffs for realistic expectations during JoSAA counseling.

Can This Method Be Used for JEE April & JEE Advanced?
Yes! You can repeat the same steps after your April JEE Main results to refine your admission possibilities.
You can also follow a similar process for JEE Advanced cutoffs when applying for IITs.

Want to Learn More About JoSAA Counseling?
If you want detailed insights on JoSAA counseling, engineering entrance exams, and preparation strategies, check out EduJob360’s 180+ YouTube videos on this topic!

Hope this guide helps! All the best for your admissions!

Follow RediffGURUS to Know more on 'Careers | Health | Money | Relationships'.

...Read more

Nayagam P

Nayagam P P  |4313 Answers  |Ask -

Career Counsellor - Answered on Mar 10, 2025

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Career
I've got 92 percentile in B.ARCH JEE MAINS paper 2A OBC-NCL will I get the good college like nit with this percentile.
Ans: Tanishq, Here is, How to Predict Your Chances of Admission into NIT or IIIT or GFTI After JEE Main Results – A Step-by-Step Guide

Once the January JEE Main session results was declared, many students and JEE applicants started asking common questions about eligibility for specific institutes (NITs, IIITs, GFTIs, etc.) based on their percentile, category, preferred branch, and home state.

Providing precise admission chances for each student can be challenging. Some reputed educational websites offer ‘College Predictor’ tools where you can check possible college options based on your percentile, category, and preferences. However, for a more accurate understanding, here’s a simple yet effective 9-step method using JoSAA’s past-year opening and closing ranks. This approach gives you a fair estimate (though not 100% exact) of your admission chances based on the previous year’s data.

Step-by-Step Guide to Check Your Admission Chances Using JoSAA Data
Step 1: Collect Your Key Details
Before starting, note down the following details:

Your JEE Main percentile (Convert percentile into Rank withe help of a formula available in Google).
Your category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
Preferred institute types (NIT, IIIT, GFTI)
Preferred locations (or if you're open to any location in India)
List of at least 3 preferred academic programs (branches) as backups (instead of relying on just one option)
Step 2: Access JoSAA’s Official Opening & Closing Ranks
Go to Google and type: JoSAA Opening & Closing Ranks 2024
Click on the first search result (official JoSAA website).
You will land directly on JoSAA’s portal, where you can enter your details to check past-year cutoffs.
Step 3: Select the Round Number
JoSAA conducts five rounds of counseling.
For a safer estimate, choose Round 4, as most admissions are settled by this round.
Step 4: Choose the Institute Type
Select NIT, IIIT, or GFTI, depending on your preference.
If you are open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
It is recommended to check institutes one by one, based on your preferred locations.
Avoid selecting ‘ALL’ at once, as it may create confusion.
Step 6: Select Your Preferred Academic Program (Branch)
Enter the branches you are interested in, one at a time, in your preferred order.
Step 7: Submit and Analyze Results
After selecting the relevant details, click the ‘SUBMIT’ button.
The system will display Opening & Closing Ranks of the selected institute and branch for different categories.
Step 8: Note Down the Opening & Closing Ranks
Maintain a notebook or diary to record the Opening & Closing Ranks for each institute and branch you are interested in.
This will serve as a quick reference during JoSAA counseling.
Step 9: Adjust Your Expectations on a Safer Side
Since Opening & Closing Ranks fluctuate slightly each year, always adjust the numbers for safety.
Example Calculation:
If the Opening & Closing Ranks for NIT Delhi | Mechanical Engineering | OPEN Category show 8622 & 26186 (for Home State), consider adjusting them to 8300 & 23000 (on a safer side).
If the Female Category rank is 34334 & 36212, adjust it to 31000 & 33000.
Follow this approach for Other State candidates Option also and different categories.
Pro Tip: Adjust your expected rank slightly lower than the previous year's cutoffs for realistic expectations during JoSAA counseling.

Can This Method Be Used for JEE April & JEE Advanced?
Yes! You can repeat the same steps after your April JEE Main results to refine your admission possibilities.
You can also follow a similar process for JEE Advanced cutoffs when applying for IITs.

Want to Learn More About JoSAA Counseling?
If you want detailed insights on JoSAA counseling, engineering entrance exams, and preparation strategies, check out EduJob360’s 180+ YouTube videos on this topic!

Hope this guide helps! All the best for your admissions!

Follow RediffGURUS to Know more on 'Careers | Health | Money | Relationships'.

...Read more

Ravi

Ravi Mittal  |545 Answers  |Ask -

Dating, Relationships Expert - Answered on Mar 10, 2025

Asked by Anonymous - Mar 08, 2025Hindi
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Relationship
I have been in relationship with my boyfriend for the past 11 months..and its gonna be a year in this April.I love him so much that I am in a point that I can't let him leave me nor I can leave him.He gives me the support and love I always wished for.There is nothing more than him that I want in my life.But the issue is with my past. When he proposed me itself, I told the harsh truth about my past relationship,that I am not virgin like him and I got pregnant with my ex .And since he is virgin he can't accept the fact that I lost my virginity.In the beginning of the relationship he has told me if he is virgin, he wants his girl also to be virgin.If he was not a virgin then this won't be a problem for him. He can't understand nor he can't accept that I lost my virginity and got pregnant.There is a twist to this story also.In the beginning I told him that I have got pregnant in my past, but after that I told him I am not sure because my test results I saw was negative. I am not sure whether I got pregnant or not, my doctor is telling me its all my hallucinations.I have been dealing with anxiety since 7 years and I am having treatment.My padt is not affecting me now but it is affecting him making him overthink a lot and I can't see him suffer like this.Before I came to his life,he was telling his family that he don't want marriage and he will be single for life.I know that my past is not smthg that every boy can accept.But he told me that he can't accept my past ever in this life nor he can't stop overthinking about it.And because of this he wants to leave me even though he loves me.He literally told me that he can fight for me and be in a relationship with me but with the condition that I have to see him suffer.I told him to see my doctor who can better explain my past to him.But it's been months I have been telling him this and still now he didn't took an effort to see my doc.I can't even imagine spending a moment of my life with him.I found my home in him.But my concern is that is he loving me like I do.If he loves me that much he will stick on to that one reason to be with me and he is not doing.Other than the fact that he can't accept my past and it is making him suffer,everything between us is good.Should we consult a relationship expert.He told me that it is better to end this now rather than getting married in future and face problems because of this and fighting with each other and finally getting a divorce.He might be correct if this issue is not resolved now,it might create problems in the longrun.But the thing is I can't change my past and whatever happened to me was not my fault.My past has become a curse in my current relationship.I can assure that my past will not create any issue in our marriage if he can accept it somehow and not overthink about it.If we continue this relationship he have to live with the overthinking about my past for my happiness.Otherwise also if we both breakup I will suffer more because of it and he too will also suffer because he left me.He is telling that the problem is with him that he can't accept my past.What should I do to fix this problem and make him accept my past and understand my love for him?
Ans: Dear Anonymous,
I am really sorry that you are in such a tricky situation. It looks like you already know that your past is not your fault, so I don't have to remind you of that. I just want you to keep reminding yourself the same thing whenever you feel the doubts creeping in. Now, coming to your partner- though it is a little unfair that he is judging you by your past, it would also be unfair to him because he clearly mentioned that he wants someone like himself; someone without any intimate experience. I cannot explain to you why that is important to so many people, but since he has been upfront about his preference, I think it is only fair to let him decide what he wants with this relationship. Also, if he is convinced that this past thing will cause problems in the future, it really isn't the best decision to move on with the relationship like everything is okay. Accept that things are not alright, and give him the space to cool down. Do not try to convince him to get back together- I know it will be hard but it is extremely important for both your futures. If he comes back, then great. If he doesn't, you should know that it's for the best.
I know you think your life will be messed up without him, and you will forever be sad, but you are wrong. It won't. Great things will happen to you because you deserve them all.
Best Wishes.

...Read more

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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