Though it was a long budget with 13275 words and went on for One hour 4o minutes approx., most eye capturing and the most awaited word was Income-Tax and the New Regime which complicated the whole thought process when the respected Finance Minister Nirmala Sitharaman said “No Deduction”. The other eye-catching reform was DDT which I shall discuss in my next article.
So if you know every year before the budget the news houses bring a lot of speculation about this Income Tax reform like – will the Finance Minister drop tax’s and leave more money in the hands of the people and boost the economy… “Mark my words: This will take a lot of time or may never ever happen”
Let’s move on… So we are left with two choose’s the old system in place with almost 70 exemptions and the new standardized percentage without any deductions in place:
So as you see the table above is clear and the new regime is very self-explanatory but the bigger problem comes when deciding which one suits you and similar was with me until I spoke to one of the News TV anchor at TimesNow and went on exploring sites to clear my confusion until I landed to LiveMint website for comparing the old and new tax regime. Click on Tax Calculator.
I hope this link above helps you and soon I would try and post a comparison of different salary slabs and meaning of different concepts regarding deduction/exception under Section 80.
It’s true that the government wants to build an ecosystem which is easy to understand for Tax Payer’s and also to promote tax payment habit because the nation doesn’t run for free. Many may not like my views but it’s true that if u want free education, medical care, etc like many developed countries then tax payment habit voluntarily is a must.
Regards: Paresh Khatri