If I have annual income of Rs. 8.50 lakh. What amount of tax do I have to pay when selecting old tax regime and new tax regime respectively. If I plant to invest Some amount under different tax-saving scheme, which tax regime would be good for me?
Ans: Person earning 8.5 lacs opt for old tax regime and invest in tax saving scheme for Rs.3,50,000 than tax liability will be NIL. Further, as per Budget proposal for FY 23 24, if said person opt for new tax regime, certain deduction liks NPS will be available and on balance tax liability will be Rs 15,000 + 10% on income more than Rs 6,00,000.