#80gg

[aryanshah7569]

How to Get Tax Benefit under Section 80GG?

You can get tax benefits despite not having an HRA component in your salary Just remember to claim a deduction under Section 80GG when you file your return

[sonalj]

House Rent Allowance Meaning & HRA Exemption Calculation

What is HRA (House Rent Allowance), and How is HRA Exemption Calculated? House Rent Allowance (HRA) is a salary component provided by employers to cover an employee's rental housing expenses.

Are you aware of the financial benefits of paying house rent that you can avail yourself of as a salaried employee? If not, it is time to expand your understanding of HRA (House Rent Allowance). Delve deeper into HRA exemption and HRA calculation to save taxes through this excellent tax exemption scheme introduced by the government.

HRA, or House Rent Allowance, is received by many salaried people and is included in their pay. But did you know that you could get an HRA exemption from taxes if you live in a rented house? Under Section 80GG, you can claim an exemption if you are salaried or self-employed.

What is HRA (House Rent Allowance)? An employer gives a house rent allowance as a subsidy for an employee’s rented accommodation. You can still use this exemption even if you work for yourself or your company does not provide an HRA. But the catch is that the house rent allowance is exempted from tax only if you live in a rented house.

So, people with a place of their own who get HRA from their employer cannot reap the benefits of claiming tax deductions under the HRA exemption section. Let us take a look at HRA for self-employed and salaried individuals:

HRA for Self-employed Individuals There is no HRA exemption provision for self-employed individuals. However, they can claim a deduction under Section 80GG of the Income Tax Act (ITA). Salaried individuals who pay rent but do not receive HRA from their employer can also utilize this provision.

HRA for Salaried Individuals For salaried individuals, HRA can be a significant component of their salary structure. The HRA amount is generally determined based on the employee’s basic salary, the actual rent paid, and the city where they reside. The amount of HRA received by an employee may vary depending on the company’s policies and the employee’s salary structure.

Calculating HRA and HRA Tax Exemption HRA plays an important part in managing salaried individuals’ monthly expenses. Calculating HRA is necessary to determine how you will utilize your salary for other remaining monthly expenditures. Using online HRA calculation in salary, you can determine your HRA rebate.

Tax exemption from HRA is calculated using the following factors:

Actual HRA Received This is the amount of HRA the employee receives from their employer.

Rent Paid The actual rent the employee pays for the accommodation they are residing in. It includes the basic rent and other additional charges like maintenance but excludes charges like electricity, water, or other amenities.

Salary The employee’s salary includes basic salary, dearness allowance (if any), and other fixed pay components.

Location of Residence HRA is related to the city or town where the employee’s rented accommodation is located. Different cities are categorized into different classes (e.g., metros, non-metros) with different HRA exemption limits.

[joeyrapace]

Beyond 80C and 80D: Tax Saving for Long-term Saving

Tax planning and saving is a critical element of financial planning. It helps you maximise your savings, reduce your annual tax liability and utilise the money for other important financial goals you may have in life. Under the Indian Income Tax Act of 1969, you can use different sections to save your taxes. 

Section 80 C and Section 80 D are the most popular sections under which people avail tax benefits. But the tax deduction you can avail under sections are capped to a certain limit. For example, the tax benefit available under Section 80C is limited to Rs. 1.5 lakhs in a financial year. 

As a smart investor, you would know the importance of tax planning, and therefore, you must look to explore the different tax-saving opportunities. The good news is that there are different sections other than Section 80C and 80D. In this blog, we look at these sections:

Section 80 TTA

Under Section 80 TTA of the Indian Income Tax Act, you can claim a deduction of up to Rs. 10,000 on the interest earned from the savings account you maintain with any bank, post office or cooperative society. 

Section 80GG

If you are a salaried individual and do not receive HRA (Housing Rent Allowance) from your employer, you can claim a deduction on the house rent under this section under certain conditions. The maximum tax benefit you can get under this section can be lesser of the following:

Rent minus 10% of the adjusted gross total income

A fixed amount of Rs. 5000 per month

25% of the adjusted total income

Section 80 EE

As a first-time homeowner, you can save your taxes on the home loan interest payment under Section 80EE. You can claim a maximum deduction of Rs. 50,000 in a financial year. This deduction you get is over and above the tax benefit under Section 80C on repaying the principal amount of the home loan. 

Section 80CCG

If you are an Indian resident, and your total annual income is less than Rs. 12 Lakh, you can claim a deduction on 50% of the investment in the shares of Rajiv Gandhi Equity Savings Scheme (RGESS) or a fixed amount of Rs. 25,000 for three successive assessment years under this section. However, to claim the tax benefit, you must meet the following conditions:

You are a retail investor as per the notified scheme requirements.

The investment is listed as per the notified scheme requirements.

You must invest in the scheme with a minimum lock-in period of three years as per the notified scheme.

Section 80U

Section 80U of the Indian Income Tax Act is related to the physical disabilities. It allows you to claim a tax benefit of up to Rs. 75,000 and if you have a severe disability, you can claim a deduction of up to Rs. 1.25 Lakh. Please note that this deduction is available only for resident Indian citizens. 

Section 80G

Under this section, you can enjoy tax benefits on the donations you make to different social causes. You can get a deduction of up to 50% or even up to 100% based on the list of the charitable institutions you are donating to. 

Some of the popular non-profit organisations that are eligible for tax deductions, include: Prime Minister’s National Relief Fund, National Children’s Fund, Jawaharlal Nehru Memorial Fund, Swachh Bharat Kosh, etc. 

Section 80TTB

This section of the Indian Income Tax Act is specifically meant for senior citizens only. If you are a senior citizen, you can claim a deduction of up to Rs. 50,000 on the interest earned from the deposits. 

Section 80GGC

As an individual, you may support certain political ideologies or parties. If you truly believe in the party’s cause, you can make a financial contribution to the political party or electoral trust through any mode other than cash payments. You can claim tax benefits on the contributions you make under this section. 

Conclusion

Now that you know the different tax benefits available to you under different sections of the Income Tax Act, the tax advantage of these benefits available to you. This will help you reduce your overall tax liability and maximise your savings. 

[knowledgematters]

Quick Tax Wins: Top Tips for Savings

In India, tax-saving options are available under various sections of the Income Tax Act, providing opportunities for individuals and Hindu Undivided Families (HUFs) to reduce their tax liability. Here are some key points about tax-saving in India:

Section 80C Tax-Saving Options

Investments and expenses under Section 80C allow for deductions of up to Rs. 1.5 lakh in a financial year. Some popular options include:

5-Year Bank Fixed Deposit

Public Provident Fund (PPF)

National Savings Certificate

National Pension System (NPS)

ELSS Funds

Unit Linked Insurance Plan (ULIP)

Sukanya Samriddhi Yojana (SSY)

Senior Citizen Saving Scheme (SCSS) 

Additional Tax-Saving Provisions

Apart from Section 80C, other provisions allow deductions:

Section 80D: for medical insurance premium

Section 80EE: for interest payment of home loan

Section 24: for interest deduction on housing loan

Section 80EEB: for interest deduction on vehicle loan for electric vehicles

Section 80G: for donations to charitable institutions

Section 80GG: for rent deduction

Section 80TTA: for interest received in a savings bank account

Section 54, 54F: for capital gain exemption 

Tax-Saving Investments in India

Tax-saving investment options to consider:

ULIP and life insurance plans

NPS tier-I account

PPF

Senior Citizen Saving Scheme, among others 

Maximizing Tax Savings

Starting tax-saving investments early in the financial year can help spread the investments and make informed decisions. It's crucial to consider the various tax-saving expenses and investments available under Section 80C to exhaust the limit effectively.

Tax-Exempt Investments

Investments such as Equity Linked Saving Scheme (ELSS) and Public Provident Fund (PPF) offer tax exemptions, making them attractive options for tax-saving 

[finschool]

House Rent Allowance

House Rent Allowance (HRA): Strategies for Optimal Claims and Exemptions

In today's fast-paced world, the cost of living is always rising, making housing a considerable financial strain for many people. Employers frequently provide a House Rent Allowance (HRA) as part of their employee's wage package to help reduce this strain. HRA is a financial benefit that assists employees in managing their housing expenses by providing a set amount of money to cover rent payments. Let us go deeper into the HRA concept, its relevance, and the benefits it provides.

What is House Rent Allowance (HRA)?

House Rent Allowance (HRA) is a stipend given to employees by their employers as part of their wage package. It is specifically designed to assist employees in meeting the cost of renting a house or lodging. HRA is typically computed as a percentage of the employee's base income, though the exact percentage varies based on the employer's rules and the city in which the employee lives.

HRA for Self-Employed People:

Self-employed individuals can also benefit from deductions and tax exemptions for House Rent Allowance (HRA). Section 80 GG allows them to claim these benefits.

HRA for Salaried Employees:

Salary earners can claim exemptions for House Rent Allowance (HRA) under Section 10 (13A), Rule 2A of the Income Tax Act. Because this allowance is a considerable portion of an employee's income, it is critical to follow the company's policies regarding HRA claims.

How is Tax Exemption For HRA is Calculated?

The deduction available is the least of the following amounts:

For individuals living in metro cities (Delhi, Kolkata, Mumbai, or Chennai), actual HRA receives 50% of [base wage + DA].

40% of [base pay + DA] for non-metros residents

Rent actually paid (-) 10% of base salary plus DA

“HRA Calculator”

Benefits of HRA:

Your actual rent must be less than 10% of your monthly wage.

The total amount of HRA granted to you by your boss.

If you live in a metro area, you will receive 50% of your basic income, and if you live anyplace else, you will receive 40%.

Eligibility:

It is only granted to employees after they have paid their landlord's rent.

If the rent is regularly paid by another family member other than the father, HRA and its tax benefits are offered to that employee.

Required Documents for HRA Deduction:

When obtaining a tax deduction for HRA, the most necessary documents to present are leasing certificates and rental agreements.

As a taxpayer, you will be liable for this deduction if you pay rent to your parents.

To claim an HRA tax deduction, you must file your rent receipts as a taxpayer.

When the annual rent of a dwelling unit exceeds Rs.1 lakh, the landlord's/PAN landlady's name must also be provided.

If the landlord/landlady does not have a PAN passport, a self-declaration with the same information is required.

How to Claim HRA When Living With Parents?

Let me illustrate this with an example.

Pranaya works for a multinational corporation in Bangalore. Despite the fact that her employer provides her with HRA, she lives at home with her parents rather than in rented housing. How will she put this money to use?

Pranaya can pay her parents' rent and get the allowance. She must sign into a rental arrangement with her parents and provide money to them on a monthly basis. In addition, Pranaya's parents must disclose the rent she paid as income on their tax filings. They can save tax on the family income if their other income is less than the basic exemption limit or is taxable at a lower tax bracket.

How to Claim Deduction Under Section 80GG?

The following items will be exempt from tax:

Rs.5,000 per month

25% of total adjusted income

Actual rent should be less than 10% of total adjusted income

Conclusion:

House Rent Allowance (HRA) is an important part of an employee's wage package since it provides financial help and tax benefits to people who live in leased housing. It alleviates the pressure of rent payments and enables individuals to select appropriate housing alternatives depending on their preferences. HRA's flexibility and assistance contribute to employee happiness and assist organizations in retaining talent. Furthermore, the tax advantages of HRA result in higher take-home pay for employees. Overall, HRA plays an important role in providing employees with a pleasant and inexpensive living arrangement and should be seen as a beneficial asset in the modern workplace.

[bricksnwallbusiness]

Why do you need rent receipts to claim HRA tax benefits?

House Rent Allowance (HRA) is a crucial component of an employee's salary package. It is an allowance provided by the employer to an employee to meet their rental expenses. The Indian government offers HRA tax benefits to employees paying rent. However, you must submit rent receipts to your employer to claim these tax benefits. Let's understand why rent receipts are essential for claiming HRA tax benefits.

What is HRA?

HRA, or House Rent Allowance, is a type of allowance provided to employees by their employer to help them meet their rental expenses. This allowance is a part of the salary and is exempt from tax up to a certain limit. The tax benefits on HRA are allowed under Section 10(13A) of the Income Tax Act, 1961. To claim HRA tax benefits, employees need to provide rent receipts to their employer. The employer will then use this rent receipt to calculate the tax exemption on HRA. The exemption is calculated as the least of the following three amounts:

Actual HRA received from the employer.

50% of the basic salary (for employees living in metro cities) or 40% of the basic salary (for employees living in non-metro cities)

Actual rent paid minus 10% of the basic salary

Why do you need rent receipts to claim HRA tax benefits?

Rent receipts are essential documents that prove that an employee has paid rent to their landlord. It is a written record of the amount of rent paid, the name of the landlord, and the duration for which the rent was paid. Rent receipts can be provided by the landlord or generated by the tenant.

For an employee to claim HRA tax benefits, the rent receipts must be provided to their employer. The employer will then use this rent receipt to calculate the tax exemption on HRA. If the rent receipts are not provided, the employer will assume that the employee has not paid any rent and will not allow any tax exemption on HRA.

Apart from providing rent receipts to claim HRA tax benefits, rent receipts are also essential for other purposes. For example, you must provide rent receipts if you want to claim a deduction for rent paid under Section 80GG of the Income Tax Act, 1961. Section 80GG applies to individuals who do not receive HRA but still pay rent. The deduction under Section 80GG is limited to a maximum of Rs. 5,000 per month or 25% of the total income, whichever is less.

Another reason why rent receipts are important is because they act as proof of residence. Rent receipts can be used as a supporting document to establish your address for various purposes like opening a bank account, applying for a loan or credit card, getting a driving license, or applying for a passport. Rent receipts are also useful for tenants who want to claim their security deposit at the end of the tenancy. The landlord can use the rent receipts to calculate the security deposit amount that needs to be refunded to the tenant.

Conclusion

In conclusion, rent receipts are essential documents that prove that an employee has paid rent to their landlord. They are essential for claiming HRA tax benefits and other purposes like claiming deductions under Section 80GG and establishing proof of residence. Rent receipts act as a written record of the amount of rent paid, the name of the landlord and the duration for which the rent was paid. They can be provided by the landlord or generated by the tenant. Therefore, it is important to keep rent receipts safe and secure as they can be useful for various purposes in the future.

Source - https://bricksnwall.blogspot.com/2023/04/why-do-you-need-rent-receipts-to-claim.html

[finacbooks]

Here you need to find out how you can claim deductions under section 80gg for rent paid. Check out the provisions that need to be fulfilled and deductions under section 80GG. Read more the complete article on Finacbooks blog

Source

What is Section 80GG?

[easyitreturn]

House Rent Allowance (HRA) – Exemption Calculation

What is House Rent Allowance (HRA)?

How to calculate exemption in respect of House Rent Allowance (HRA)?

Paying House Rent but Salary component does not have House Rent Allowance (HRA)

Important point in House Rent Allowance (HRA).

1. What is House Rent Allowance (HRA)?

Salaried employees receive House Rent Allowance (HRA) as a part of their salary income. If the employee lives in a rented accommodation, tax exemption can be claimed by the employee. As such there are no fixed criteria for the HRA payment. It all depends on the Salary structure of the employee, city of his employment and so on.

2. How to calculate House Rent Allowance (HRA) Exemption?

Deductions on Contribution to Pension Funds of Insurance Company

Tax exemption calculation in respect of House Rent Allowance (HRA) is quite simple. If an employee receives House Rent Allowance (HRA), he can claim least of the following three points as reduction from the actual HRA received:

Benefit of HRA tax exemption is available only if the employee pays house rent.

If you miss out to provide the rent payment details to your employer at the time of making declaration, you can claim House Rent Allowance (HRA) exemption at the time of filing ITR.

If an individual opts for Alternative Tax Regime under Section 115BAC deduction under House Rent Allowance (HRA) is not available from assessment year 2021-22.

Actual House Rent Allowance (HRA) received, or

50% of Basic Salary + Dearness Allowance (DA) (In metro cities)/ 40% of Basic Salary + DA (Non metro cities), or

Actual Rent Paid Less 10% of Basic Salary + DA

Let us understand HRA by a simple example:

Mr. Abhinav resides in Mumbai. He pays monthly rental of Rs. 12,000 for accommodation for the full year. The following is the monthly pay slip

PaymentsAmountDeductionsAmount

Basic35,000PF1,800

HRA15,000Professional tax200

Other Allowance3,000

LTA4,000

Earnings57,000Deductions2,000

House Rent Allowance (HRA) tax exemption for Mr. Abhinav will be as under:

PaymentsAmount

HRA Received

(Rs. 15,000 X 12)180,000

50% of Salary – 50% of Rs. 420,000

(Rs. 35,000 X 12)240,000

Actual Rent Less 10% of Salary

(Rs. 12,000 X 12) minus 10% of 420,000102,000

Tax Exempt HRA (least of 3 figures)102,000

So, Mr. Abhinav will be eligible for tax exemption of Rs. 102,000 out of total HRA received of Rs. 180,000 and thus only Rs. 78,000 shall form part of taxable income.

3. If I am paying House Rent but not receiving House Rent Allowance (HRA)?

If the salary component does not include House Rent Allowance (HRA), then no question of tax exemption for HRA arises even though the house rent is being paid by the employee. But this should not dishearten the taxpaying employee. He can claim deduction for house rent payment under Section 80GG. For more details on Section 80GG click here

4. Few Important points in House Rent Allowance (HRA)

Benefit of HRA tax exemption is available only if the employee pays house rent.

If you miss out to provide the rent payment details to your employer at the time of making declaration, you can claim House Rent Allowance (HRA) exemption at the time of filing ITR.

If an individual opts for Alternative Tax Regime under Section 115BAC deduction under House Rent Allowance (HRA) is not available from assessment year 2021-22.

[sonalj]

What is HRA (House Rent Allowance)? An employer gives a house rent allowance as a subsidy for an employee’s rented accommodation. You are still eligible to use this exemption even if you work for yourself or your company does not provide an HRA. But the catch is that the house rent allowance is exempted from tax only if you live in a rented house.

So people who have a place of their own and get HRA from their employer cannot reap the benefits of claiming tax deductions under the HRA exemption section. Let us take a look at HRA for self-employed and salaried individuals:

HRA For Self-Employed Individuals For self-employed individuals, there is no provision for HRA exemption. However, they can claim a deduction under Section 80GG of the Income Tax Act (ITA). Salaried individuals who pay rent but do not receive HRA from their employer can also utilize this provision.

HRA For Salaried Individuals For salaried individuals, HRA can be a significant component of their salary structure. The HRA amount is generally determined based on the employee’s basic salary, the actual rent paid, and the city where they reside. The amount of HRA received by an employee may vary depending on the company’s policies and the employee’s salary structure.

[uanloginn1-blog]

Efiling income tax

On the off chance that you have not possessed some other house property (first-time homebuyer), at that point you can guarantee a finding of up to Rs 50,000 under Section 80EE. This sum is over the tax reduction of Rs 2 lakh for reimbursement of home advance enthusiasm under Section 24The conditions to profit this conclusion incorporate that the estimation of the house ought to be underneath Rs 50 lakh, and furthermore the credit sum ought to be Rs 35 lakh or less. Moreover, the home advance ought to be endorsed between Segment 80EEA: Interest installment of the home credit for first-time purchasers  income tax efiling

 In the event that you have not possessed some other house property (first-time homebuyer), at that point you can guarantee a finding of up to Rs 1,50,000 under Section 80EEA. This sum is over the tax reduction of Rs 2 lakh for reimbursement of home advance enthusiasm under Section 24.The conditions to profit this finding incorporate that the stamp obligation estimation of the house ought to be beneath Rs 45 lakh. Besides, the home credit ought to be authorized between Area 80EEB: Interest paid on credit taken for the acquisition of an electric vehicle

 On the off chance that you have taken advance for the acquisition of electric vehicle, at that point you can guarantee a finding of up to Rs 1,50,000 under Section 80EEB.The conditions to benefit this derivation is that the advance ought to be endorsed between A Area 80G: Donations to altruistic organizationsGifts made to government-endorsed altruistic organizations can be asserted as a finding under this area. The gift can be for the remodel of a position of love like sanctuaries, mosques, and places of worship, given that they are endorsed by the focal government. To profit the duty derivation under this segment, you ought to give with a money order, as beginning from FY17-18 money gift above Rs 2,000 don't qualify as findings. A portion of the assets affirmed by the legislature incorporate the National Defense Fund, Prime Minister's National Relief Fund, Clean Ganga Fund, National Children Fund, and so forth.

 Segment 80GG: Rent paid for settlemenThis conclusion must be guaranteed in the event that you don't get house lease remittance (HRA) as a component of your pay, or on the off chance that you are an independently employed individual. To profit this derivation, you have to submit Form 10BA. You can guarantee finding up to Rs 60,000 under this segmentSegment 80TTA: Interest from Saving Bank AccountThis derivation can be guaranteed up to Rs 10,000 in regard of premium salary got from sparing financial balance with a financial organization, a mail station or a co-usable society occupied with the matter of banking Segment 80TTB: Interest from stores if there should arise an occurrence of senior residents

[d-r-strefa-duzego-biustu]

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[kbcca]

80C - Investment in PPF, LIC, ME ETC - Max 1.5 L 80GG - Deduction for House Rent - As Per Salary 80E - Interest on Education Loan - Full Amount 24 - Interest on House Loan - Max 2.0 L 80CC (1B) - Investment in NPS - Max 50,000 80D - Medical Insurance Premium Self - 25,000 10(13A) - House Rent Allowances - As Per Salary 80TTA - Interest on Savings (<60 Yrs) - 10,000

[leadshire]

If you are a salaried individual who lives with your parents, you can pay them a rent sum that will prevent you from benefiting from the House Rent Allowance exemption (HRA). If you do not get it, you may request a deduction under Section 80GG.

That's a lot of amazing ideas. Visit www.leadshire.com for additional information.

[fipro-finacial-advisor]

MAKE THE WISE DECISION BY LEARNING THE DIFFERENCE BETWEEN NEW & OLD TAX REGIME IN INDIA

Effective from April 1, 2020 in India, an individual salaried taxpayer has been given the option to continue with the old tax regime and avail deductions/tax exemptions such section 80C, 80D deductions, HRA, LTA tax exemptions etc. or to opt for the new tax regime and forgoing approximately 70 deductions and tax exemptions. The new tax regime offers lower tax rates as compared to the old tax regime.

The new tax regime is different in two ways from the old one. Firstly, it has more slabs with lower tax rates. And secondly, all the major exemptions and deductions available to taxpayers in the existing (old) tax regime are not allowed if the new tax regime is chosen.

Choosing an old or new tax regime is completely your own decision and it will depend on your income structure, available deductions, and circumstances. While deciding to choose between the old & new tax regimes, one should look at the pros and cons of both regimes in order to make a wise decision.

To avoid the cumbersome procedure of choosing which tax regime is best suited, a financial planner may offer specialized services in tax planning and asset allocation. A Certified Financial Planner also helps clients in risk management; retirement and estate planning to meet their current money needs and long-term financial goals. They use a structured process to guide clients toward careful financial decisions to maximize their potential for meeting life goals. Using their knowledge of personal finance, taxes, budgeting, and investments—combined with analytical tools and data that can illustrate potential outcomes—financial planners make recommendations, which help clients make informed decisions.

Under both income tax regimes, tax rebate of up to Rs 12,500 is available to an individual taxpayer under section 87A of the Income-tax Act, 1961. This would effectively mean that individuals having net taxable income of up to Rs 5 lakh would not pay any income tax irrespective of the tax regime chose by them.

List of the main exemptions and deductions that taxpayers will have to forgo if they opt for the new regime.

Leave travel allowance exemption which is currently available to salaried employees twice in a block of four years.

House rent allowance normally paid to salaried individuals as part of salary.

Standard deduction of ₹50,000 currently available to salaried tax payers.

Deduction available under section 80TTA/80TTB i.e. Deduction in respect of Interest on deposits in savings account) and 80TTB (Deduction in respect of Interest on deposits to senior citizens) will not be available to the taxpayers.

Deduction for entertainment allowance (for government employees) and employment/professional tax as contained in section 16.

Tax benefit u/s 24 on interest paid on housing loan taken for a self-occupied or vacant house property.

Deduction of ₹15000 allowed from family pension under clause (iia) of section 57.

The deduction claimed for medical insurance premium under section 80D will also not be claimable.

Tax benefits for disability under sections 80DD and 80DDB will not be claimable.

Tax break on interest paid on education loan will not be claimable-section 80E.

Tax break on donations to charitable institutions available under section 80G will not be available.

All deductions under chapter VIA (like section 80C, 80CCC, 80CCD, 80D, 80DD, 80DDB, 80E,80EE, 80EEA, 80EEB, 80G, 80GG, 80GGA, 80GGC, 80IA, 80-IAB, 80-IAC, 80-IB, 80-IBA,etc. will not be claimable by those opting for the new tax regime.

However, deduction under sub-section (2) of section 80CCD (employer contribution on account of the employee in a notified pension scheme—mostly NPS) and section 80JJAA (for new employment) can still be claimed.

Income level (INR)Old tax rate regime*New tax rate regime Up to 2,50,0000%0% 2,50,001 to 5,00,0005%5% 5,00,001 to 7,50,00020%10% 7,50,001 to 10,00,00020%15% 10,00,001 to 12,50,00030%20% 12,50,001 to 15,00,00030%25% Above 15,00,00030%30%

To ensure you’re making the right decision, thorough learning about both the tax regimes is as paramount as staying updated about new amendments proposed by the government. A financial consultant in Bangalore will help you decide what’s best for you, making sure you make the right decision.