New Delhi: Finance minister Nirmala Sitharaman revised the tax slabs under the new tax regime in Budget 2024, while providing more relief under standard deduction to Rs 75,000 crore from Rs 50,000 earlier. This makes income up to Rs 7.75 lakh tax-free. So, what are the taxes you may have to pay if your income is Rs 10 lakh?
With the last date for ITR Filing without penalty being July 31, 2024, it is important to understand how much tax you will have to pay.
How much income tax payable on Rs 10 lakh income
If you are earning Rs 10 lakh it is more advantageous to file ITR under the old tax regime. This is because the regime allows you to claim deductions for different expenditures, lowering your tax payout. Here we will make some assumptions:
Exemptions (HRA, etc): Rs 2 lakh
Interest on home loan: Rs 50,000
Medical insurance: Rs 20,000
NPS: Rs 50,000
PPF: Rs 1,50,000
Standard deduction: Rs 50,000
After making these deductions, your taxable income is Rs 4,30,000
This amount will not incur any income tax.
Income Tax payable on Rs 10 lakh under new tax regime
Under the new tax regime, you will receive:
Standard deduction: Rs 50,000
This makes your taxable income: Rs 9,50,000
The income tax payable is Rs 52,500.
Therefore, it is more beneficial to file taxes under the old tax regime.
ITR Filing 2024: HEre’s how much income tax will you have to pay on Rs 10 lakh earnings under the old and new tax regimes. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
