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Ans: New regime is better

Ans: Person having taxable income of 9 lakhs and housing loan repayment of 1.8 lacs, can opt for new tax regime as new slab rate is likely to be beneficial as per budget proposed for FY 2023-24

Ans: Hello,

Based on the information you've provided, let's first calculate your taxable income under the Old Tax Regime. Your annual income is INR 34 lakhs. From this, we can subtract the home loan principal (INR 1.5 lakhs) and interest (INR 2 lakhs), health insurance premium (INR 23,000), and life insurance premium (INR 50,000) as deductions. This brings your taxable income to:

34,00,000 - 1,50,000 - 2,00,000 - 23,000 - 50,000 = INR 29,77,000

Now, let's calculate your tax liability under the Old Tax Regime:

Up to INR 2.5 lakh: Nil
INR 2.5 lakh to INR 5 lakh: 5% of (5,00,000 - 2,50,000) = INR 12,500
INR 5 lakh to INR 7.5 lakh: 20% of (7,50,000 - 5,00,000) = INR 50,000
INR 7.5 lakh to INR 10 lakh: 20% of (10,00,000 - 7,50,000) = INR 50,000
INR 10 lakh to INR 12.5 lakh: 30% of (12,50,000 - 10,00,000) = INR 75,000
INR 12.5 lakh to INR 15 lakh: 30% of (15,00,000 - 12,50,000) = INR 75,000
Above INR 15 lakh: 30% of (29,77,000 - 15,00,000) = INR 4,43,100
Total tax liability under the Old Tax Regime: INR 12,500 + 50,000 + 50,000 + 75,000 + 75,000 + 4,43,100 = INR 7,05,600

Now, let's consider the New Tax Regime (assuming no deductions as they are not allowed):

INR 0-3 lakh: Nil
INR 3-6 lakh: 5% of (6,00,000 - 3,00,000) = INR 15,000
INR 6-9 lakh: 10% of (9,00,000 - 6,00,000) = INR 30,000
INR 9-12 lakh: 15% of (12,00,000 - 9,00,000) = INR 45,000
INR 12-15 lakh: 20% of (15,00,000 - 12,00,000) = INR 60,000
Above INR 15 lakh: 30% of (34,00,000 - 15,00,000) = INR 5,70,000
Total tax liability under the New Tax Regime: INR 15,000 + 30,000 + 45,000 + 60,000 + 5,70,000 = INR 7,20,000

Based on these calculations, it seems that the Old Tax Regime would be more suitable for you as it results in a lower tax liability (INR 7,05,600) compared to the New Tax Regime (INR 7,20,000).

Ans: In the absence of salary structure, it is not possible to claim HRA exemption. You can calculate the same at https://incometaxindia.gov.in/Pages/tools/house-rent-allowance-calculator.aspx

Considering income and quantum of deductions, old regime is likely to be beneficial and after calculation of HRA exemption, you can check the same at https://eportal.incometax.gov.in/iec/foservices/#/TaxCalc/calculator