When we talk about the concept of the old vs new tax regime calculator online, there is often a debate as to whether enough ideas about the pros and cons are known or not. However, if you want to make up your mind and choose between the old and new tax regime calculator, then you are in the right spot. The concepts of old and new tax calculators are often not well known among people, so the comparison is also not very clear.
As many of you would know, the income tax is known to levy taxes on the income percentage of every individual. The tax is then calculated based on the income slab they fall under. However, the tax regime has recently changed, where they have reduced the tax rates along with reducing the tax saving opportunities.
Comparison Between The Old and New Tax Regime Calculator
When it comes to the new tax regime vs old tax regime calculator, it would be easy if we could give you a comparative analysis of the same.
Tax Percentage Income:
The first domain that we are going to be talking about is the old regime of tax calculation. The primary principle of this particular tax system was that for those whose income ranged between rupees five to ten lakhs, the tax percentage was charged at a stagnant percentage of 20%.
However, when it comes to the new regime, the most poignant thing that has been noticed is that the tax percentage has been reduced to almost half, and as of now, it stands at just 10% of the income if it ranges between five to ten lakhs.
Tax Deductions:
The next comparison between the new vs old tax regime calculator is the tax deductions and the exemptions that have been allowed. If we go by the old tax regime, then you will be able to see that, in total, there were 120 tax exemptions. However, the most important thing you need to remember is that not all of these were beneficial, and hence there was consistently confusion among people to understand.
After a thorough analysis, it was seen that the tax deduction was brought down, and hence today, it stands at 50 in total. To have a better idea about the tax deductions you are entitled to, make sure that you can get in touch with professionals who can guide you and better understand the entire concept.
Which One Should You Choose? The Old or the New Tax System?
When choosing between the old vs new tax regime calculator, a very important thing that needs to be kept in mind is that both are unique and have different sets of benefits and back draws. The most important thing about the old tax regimen is that it did have a lot of tax deductions. Hence, it was favourable for all those individuals who wanted to invest the tax money and consequently take a better onus.
Conclusion
When we talk about the new tax regime calculator, the most important thing is the tax deduction is now half, and it offers taxpayers a lot of flexibility. The new tax system is still difficult to understand, so all you need to do is have a good idea about the same to make the right filings.
Both the old as well as the new tax regime calculator does offer a lot of great options to the taxpayers. Once you have a better idea about the old vs new tax regime calculator online, it will be easier for you to make sense of the tax system.
