DT. 03-Feb-2023
For the middle class the only question we have after every budget is that how much have the tax slabs changed. What new exemptions were provided and eventually how much will be our annual tax outgo. While this is a very narrow view of analyzing the budget it is also the most tangible and upfront relief that can be provided to the common man in a budget.
It is therefore very normal to have heated discussions on whether the FM has done anything good for the middle class in every budget. While the Modi government has stayed away from distributing too many benefits to the salaried class in every budget they have slowly but steadily favored the new tax regime where
- There will not be any need to make unnecessary investments to save tax
- Reduced paperwork at year end proving your investments
- More cash in hand
- Eventually simpler and straight forward tax filing.
With this in mind I suggest that everyone should start planning their journey to the new tax regime as the old one will become obsolete sooner or later.
Following calculation charts will help you make the decision. These are just based on my experience. Please consult your CA to get better advice.
I am not considering huge HRA deduction of more than 1Lakh per annum as it adds tax liability to the Landlord (in most cases your parents).HRA deduction can be claimed but ensure that your landlord is paying proper taxes. Also discounting health insurance premium and NPS premiums. If you have these add to your deductions.
Caution Wider Images ahead
Till Next time ..Bye :-)
