Old Tax vs New Tax Regime | Which Is More Beneficial After Budget 2023? | Explained

What's the difference between the old tax and new tax regime and which one could be more beneficial for you?
Pranjal Kamra and Sonal Mehrotra Kapoor explain the key differences between the two tax regimes.
WATCH!

#budget2023 #tax #incometax

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[DesiFunnn]

Last ten year BJP hasn't increased 80C limits, or any other tax exemption limits when inflation has doubled over in 9 years. I will not vote for BJP this It's getting more and more difficult for me to run my home with this much taxes .

[arpitbhargava]

Old regime benefits:

1.5L 80C
0.5 Standard Deduction
0.5 Voluntary NPS 80 CCD1B
10% of basic contribution under NPS CCD2 upto 1.5L (while reverse calculating for a max sal where u can end paying no tax it came out to be around 0.5L)
80D max upto 1lac (majority would be in the 0.75L bracket - self spouse n.s.c., parents s.c.)
3.5L from home loan interest (2L via 24b & 1.5 L via 80EEA)
LTA as per applicable (10% of basic would come arround 0.5L on reverse calculation)
Rebate under section 87A for upto 5L taxable income.

Essentially a person with ~12.5-13 lpa salary can end up paying ZERO taxes.

New tax regime benefits:

0.5L standard deduction as proposed
0.35L NPS 80CCD2 (reverse calculation to get zero tax salary)
0.1L employer EPF contribution (~3%of basic can be claimed under 80C in new tax regime as well)
87A rebate for upto 7L taxable salary.

Zero tax salary comes out to be ~8lpa

Person with 15lpa sal would pay 1.5lac tax in new regime. While in old regime with the calculations above will pay ~62.5k tax. Even without home loan deduction the tax would still be at 1.425 L

[EveryPaisaMatters]

There are way too many errors in these calculations. I will point 2 main errors -
1. In the new tax regime also, the standard deduction is now applicable. The calculations have not taken that into account.
2. Under the comparison of 7 Lakh Salary, the calculation for the Old Tax regime is wrong because Standard Deduction of 50000 has NOT been taken into account which though has been taken for all other calculations.
Video seems to have been created in a hurry.

[ankurhotnot]

I think with house loan interest of 2 lakhs + 10% basic pay nps deduction + 50k standard deduction + 80c 1.5 Lakh + nps 50k additional + 25k 80d. Old regime would be better 🤣

[surtiarpan]

Why are you comparing old regime without deductions with new regime? That’s misleading…. Compare old regime with deductions vis-a-vis new regime and than see.

[vaibhavgupta]

Bhai 80C k alawa bhi bhut pasa invest kiya jata hai.. and for the reason income groups above 15Lac will always prefer old regime. Which has zero change in budget..

[vchandrasekaran]

What about HRA, Home loan interest, NPS, 80D/G?

[abhisheksood]

As a chartered accountant I just Can't believe how terribly wrong this vedio IS! Have you ever heard of HRA, 80D, 80E...? One is a you tube influencer and the journalist is hilariously clueless! If this vedio isn't sponsored to glorify the budget then I weep for the education system in India!!! In coming years be prepared to pay 4 months salary to government and God help us all... 🙏🙏

[suvrajit]

Dear Kamra,
We have other deductions as well HRA, LTA, Medical insurance, health checkup etc . These are basic one who is earning more that 12lk they include these . So don't spoil video by half truth . Still new regime is failure

[Aditya-wjgy]

considering inflation still it's peanuts.

[balajivynala]

These people encouraging us to opt for new regime but they will opt for old regime 😂

[nirikshanaik]

Not take account of mediclaim, HRA, pension old regime is way better

[arpitbhargava]

Now even the news channel think that just by putting a pretty face people will accept anything....

[lloydjacob]

Comparison should be with rebates one can get in old and new tax regime considering all the parameters. HL, HRA, Medical, 80G...etc..

It's a step to demolish old tax regime and at the end salaried end up paying more tax

[nicholasdomnic]

The calculation is wrong.

Under old regime the, we have a standard deduction of 50 thousand, exemptions upto 2Lakh including 80c and 80ccd.
Other execmptions include HRA allowance and LTA

You haven't considered the HRA, 80C, 80CCD and the standard deductions.

[mickysalve]

Income - 700010 I can pay zero tax by claiming dedication … But in new regime I need to pay 26400 … very good …. Old is gold upto 30 Lac …..as everyone have home loan and HRA and policy ..

[KAPILDHYANI]

Please consider HRA also, anyways we end up paying more in new tax regime be it in any tax bracket. So overall no benefit in tax payouts.

[shankarreddy]

2 Foolish people on the screen don't know that person who would invest 1.5 lakhs in 80 C would also have HRA or Home loan and 80D deductions in which case old tax regime is more beneficial.. May god save these people...

[sharadachowdappa]

Not audible and also not explaining properly confusing

[vijeshanbarla]

Calculate for 11, 12, 13, 14 lakh bro.also people save by investing in government schemes and government also gets benefited.consider HRA dude.