Tax Slabs
| ANNUAL INCOME | OLD TAX RATE | NEW TAX RATE |
|---|---|---|
| Upto Rs. 2.5 lakhs | NIL | NIL |
| Rs. 2.5 Lakhs to Rs 5 Lakhs | 5% | 5% |
| Rs. 5 Lakhs to Rs 7.5 Lakhs | 20% | 10% |
| Rs. 7.5 Lakhs to Rs 10 Lakhs | 20% | 15% |
| Rs. 10 Lakhs to Rs 12.5 Lakhs | 30% | 20% |
| Rs. 12.5 Lakhs to Rs 15 Lakhs | 30% | 25% |
| Rs 15 Lakhs & above | 30% | 30% |
Tax Planning may be described as legal way of reducing of tax liability in a year by investing in different schemes as prescribed by income tax Act. It may also include entering or exiting investment schemes so as to save maximum tax possible within the legal framework. The Golden Rule mosaic says, “Do Unto Others as You Would Have Them Do unto You”, every individual is expected to follow this rule to get rewarded as they expect.
Tax savings are legal, but tax evasion through the loopholes of the tax saving options is to be reviewed based on the following text from Bible; ‘All things are lawful’, but not all things are beneficial. ‘All things are lawful’, but not all things build up” A comparison of the deductions and exemptions available under the new and the old tax regime is given below. One can decide whether to select Old Regime for New Regime based on what all investments and payments are done / applicable to them.