Tax under proposed New & Old regime for salaried person - Comparision with Various options

[Charu Tyagi]

1. The table below shows the income and tax thereon under old & new regime of tax of Salaried person

Salary Income	Total Tax including cess & surcharge		Difference
	Old Regime	New Proposed Regime
7 Lakh	-	-	-
7.5 Lakh	23,400	-	23,400
9 Lakh	54,600	41,600	13,000
10 Lakh	75,400	54,600	20,800
15 Lakh	210,600	145,600	65,000
25 Lakh	522,600	452,400	70,200
60 Lakh	1,776,060	1,698,840	77,220
1.5 Cr	5,085,990	4,933,500	152,490
5 Cr	19,178,250	19,090,500	87,750
6 Cr	25,293,760	22,990,500	2,303,260

 *For tax under old regime we have assumed deduction of ₹1,50,000 & standard deduction of ₹50,000

*For tax under New regime we have assumed standard deduction of ₹50,000

2. Tax on Salaried person where he is opting for all deductions & exemptions under old regime and corresponding tax under New regime proposed under Budget 2023

Particulars	Old Regime	Proposed New Regime
Income from Salary	1,200,000	1,200,000
Less : HRA Exemption	190,000	-
	1,010,000	1,200,000
Less: Standard Deduction	50,000	50,000
Less: Housing Loan Interest	200,000	-
Gross Total Income	760,000	1,150,000
Less: Deduction Under Chapter - VIA
Sec 80C (LIC, Tution Fee, PPF etc)	150,000	-
Sec 80CCD (NPS)	50,000	-
Sec 80D (medical Insurance)	25,000	-
Total Income	535,000	1,150,000
Tax on Total Income (including cess)	20,280	85,800
*HRA exemption is taken on assumed basic salary of ₹ 500,000 & and Rent paid of ₹20,000 p.m

3. Tax on Salaried person where he is opting for HRA & Standard deduction only under old regime and corresponding tax under New regime proposed under Budget 2023

Particulars	Old Regime	Proposed New Regime
Income from Salary	1,200,000	1,200,000
Less : HRA Exemption	190,000	-
	1,010,000	1,200,000
Less: Standard Deduction	50,000	50,000
Less: Housing Loan Interest	-	-
Gross Total Income	960,000	1,150,000
Less: Deduction Under Chapter - VIA
Sec 80C (LIC, Tution Fee, PPF etc)	-	-
Sec 80CCD (NPS)	-	-
Sec 80D (medical Insurance)	-	-
Total Income	960,000	1,150,000
Tax on Total Income (including cess)	108,680	85,800
*HRA exemption is taken on assumed basic salary of ₹ 500,000 & and Rent paid of ₹20,000 p.m