I am having CTC of 16L and do not have any EMI, I can invest 30k a month. Which regime can help me to save maximum tax and how ?
Ans: I do not know which financial year are you referring to.
If you take the new tax regime this year, you will pay a tax of Rs 2,17,500 as there’s no standard deduction. Next year you will pay tax of Rs 1,65,000.
If you take the old tax regime, you will pay a tax of Rs 1,72,500, assuming that you will use the IT Section provision of 80C fully and also have the standard deduction. If you are also eligible to deductions under Sections 80D, 80E, and 80G, tax will further reduce in the old tax regime.
