💰How to Save your ⚡Income Tax | Must Watch Video

Описание: INCOME TAX CALCULATOR⬇️
https://cleartax.in/paytax/taxcalcula...

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DESCRIPTION:

In this video, I explained about the income tax details. For us, there are 2 income tax regimes, one is Old and another one is New tax regime. Out of these, which one is best for saving the money. New or Old one let’s see.

NEW INCOME TAX REGIME

New Income Tax regime was introduced in Budget 2020 for financial year 2020-2021. After that, made revised slabs and again introduced in 2023. In Budget 2026, Finance Minister Nirmala Sitharaman said that there is no changes in new income tax slabs and old tax regime is in optional. This new tax regime will default and come to effective from April 1, 2026. There is an important point is there is zero tax for 12 lakhs per annum. This is highly benefit for low- and middle-class salaried persons.

NEW INCOME TAX SLAB

UP TO 4 LAKHS = 0% TAX
4 TO 8 LAKHS = 5% TAX
8 TO 12 LAKHS = 10% TAX
12 TO 16 LAKHS = 15% TAX
16 TO 20 LAKHS = 20% TAX
20 TO 24 LAKHS = 25% TAX
ABOVE 24 LAKHS = 30% TAX

After reviewing the new income tax slabs, many people got confused that, already mentioned that there is no tax upto 12 lakhs per annum but in slabs it is mentioned that up to 4 lakhs there is no taxation. Here the term comes SECTION 87A. Under this section, there is a Rebate of Rs. 60,000 and standard deduction of Rs. 75,000.
From these details, we can get clarification on the difference on 4lakhs zero tax and 12 Lakhs zero tax.

THEN WHAT ABOUT OLD TAX REGIME

As per the budget 2026, Old tax regime is for optional. The major difference between new and old tax regimes are deductions. One, who needs to include almost all of the expenses and investments then he\she to opt for old tax regime.
• Section 80C: Investments such as Public Provident Fund (PPF), Employee Provident Fund (EPF), National Savings Certificate (NSC), ELSS mutual funds, life insurance premiums, and tuition fees for children are covered, with a maximum of ₹1.5 lakh per financial year.

• Section 80D: Deductions are available for medical insurance premiums paid for self, family, and parents. Limits are ₹25,000 for individuals/families and up to ₹50,000 for senior citizens.

• Section 80CCD(1B): An additional deduction of up to ₹50,000 is available for contributions to the Tier I NPS account, above the 80C limit.

• Section 80CCD(2): An employer's contribution to an employee's NPS account is limited to 10% of salary (14% for government employees).

• Section 24(b): Interest on a home loan for self-occupied property, up to ₹2 lakh.

• House Rent Allowance (HRA): An exemption for rent paid [10(13A)].

• Section 80E: Interest paid on education loans for higher studies.

• Section 80G: Donations to charitable institutions.

• Section 80TTA/80TTB: Deductions on interest from savings accounts (up to ₹10,000) or deposits for senior citizens (up to ₹50,000).

• Section 80GG: A deduction for rent paid by individuals not receiving HRA.

• Standard Deduction: Salaried individuals can claim a standard deduction of ₹50,000 against their salary income.

From these, if you have so much deductions you can opt for old tax regime.

HOW ABOUT THE DEDUCTIONS IN NEW TAX REGIME

Can we expect these deductions on new tax regime, no not all of these deductions come under new tax regime, limited deductions only. As per the SECTION 80CCD(2), employer contribution can avail for this deduction.
If you pay interest on property which rented out for some person, that can be availed for the deduction, but its not applicable for the interest which paid for self property. This is an example for encouraging renting properties by the government.
Like these minimal deductions only available in new tax regime.

WHICH IS BEST

Like said earlier, new tax regime is suitable for low or middle class income earners also for the persons which don’t have many expenses or investments in other sides.
In simple words, if you have many deductions you can opt for old tax regime, otherwise if you don’t have as much deductions, new tax regime is best for you.

WHICH IS BEST FOR GOVERNMENT

According to the government, New tax regime gives benefits, though from this regime many persons save money, so that the consumption and expenses will increase, it leads to increase in economy.
Reduce most of the process and becomes in simplified manner, at the same time due to the simplified process, people comes front to pay the income taxes.

Due to the rejection of major sections, it can avoid the fraudness while filing the income tax.
THANKS!!!