The new tax regime is a game changer in Indian taxation. From 1s April 2023, we expect a large number of taxpayers, particularly young earners, high earners and those who have completed their home loan or have no need for one, to shift to the new regime. Even though section 80C is not valid in…

A reader asks, “My question is about the significance of ELSS funds in the future due to the new tax regime. Can we continue investing in these funds?” Budget 2023 has made the new tax regime the default scheme with an option to continue using the old scheme. The new regime has significant tax cuts…

Budget 2023 has made the new tax regime the default scheme with an option to continue using the old scheme. The new regime has significant tax cuts with no tax on income of up to Rs 7 lakhs (net taxable). To appreciate the gravity of these changes, let us consider an example using the New Tax…

Budge 2023 has proposed to remove the double tax deduction benefit associated with home loan interest. We all know that the interest component of a home loan can be claimed as a deduction up to a maximum of Rs. two lakhs under section 24. When the property is sold, the entire interest component, whether claimed…

In response to our recent article – Tax deductions available in the New Tax Regime from 1st April 2023 – a reader wants to know if the employer contributions made to the EPF are taxable in the new tax regime from 1st April 2023. Employer contributions to the EPF are not part of an employee’s salary….

A reader asks, “Sir, thank you for the old tax regime vs the new tax regime calculator. It is really easy and useful. I realised that the new regime is better from the next financial year unless someone has a huge HRA or home loan interest. However, if I wish to buy a house in…

The following is a list of tax deductions available in the new tax regime from 1st April 2023 (after the budget 2023 announcement). Family Pension: A deduction of 33.33% or Rs. 15000, whichever is less, is allowed from the family pension in the new tax regime from 1st April 2023. A standard deduction of Rs….

Budget 2023 has introduced a tax rebate in the new tax regime, and with this, the effective tax-free limit is now Rs. 7 lakhs. Here is how this works. We use the New Tax Regime vs Old Tax Regime Calculator for this illustration. Consider first the old tax regime. For a salaried tax-payer with an income…

Budget 2023 has made significant changes to the new tax regime. Although the old regime is still valid, the new regime will now be the default regime, and taxpayers must opt for the old regime if they wish to. Here is a free calculator to find out if you should switch to the new tax…

Budget 2023 has proposed welcome changes in the presumptive taxation rules for small businesses and certain professionals. Section 44AD: Old rule: Individuals, HUF or partnership firms (other than LLP) with a turnover or gross receipt of two crore rupees or less are eligible.  Taxable income (profit from business) can be set to 8% or 6%…

Three major changes have been proposed in Budget 2023 for senior citizens. Senior Citizen Savings Scheme: The maximum deposit limit for Senior Citizen Savings Scheme has been enhanced from 15 lakhs to 30 lakhs. The entire amount invested is attributed to the first holder. So a husband can open an account for 30 lakhs, and…

Only the slabs of the new tax regime have been reduced (lowered for some slabs) in Budget 2023. The new tax regime will now be the default regimen, and taxpayers will have to specifically select the old regime if they wish to use it. Update: Download the free revised income tax calculator below! This is…

Budget 2022 has not increased Equity LTCG Tax from 10% to 15%! The mention of 15% was a reference to the capping of the surcharge on LTCG from other assets. An explanation. How does surcharge work:  If your income is Rs. 100 and the tax is Rs. 30 and the surcharge applicable is 10%, then…

The finance minister announced that virtual digital assets including cryptocurrencies will be taxed at a rate of 30% from 1st April 2022. Here are the details. The finance bill 2022 defines a virtual digital asset as follows: Any information or code or number or token (not being Indian currency or foreign currency), generated through cryptographic…