Category: Miscellaneous

06 May 2024 06:07

Joined:	10/12/2016
Level:	Diamond
Points:	109183

Points:	5

Which regime do you choose while filing Income Tax return?

Over the time Income Tax department has brought many changes in the tax structure and every year there is some change in the rates of tax especially on the taxable amounts falling in the range Rs 2 to 10 lakhs per year. The department also gives option to the tax player for selecting the old regime versus new regime for paying the tax. In old regime the deductions under section 80 are allowed upto Rs 150000 per year while that benefit is not there in the new regime. But in the new regime tax rates are lower slab wise.
In general, I found that paying tax as per new regime is beneficial to the tax payer. What is your observation? Are there some people who are still filing the return as per old regime?

#779073

06 May 2024 11:55

Joined:	20/01/2017
Level:	Diamond
Points:	25422

Points:	4

About 3-4 years back when there were changes in the slabs of Income Tax and many other changes then most of the benefits under section 80 (mainly savings like PPF, LIC etc) were removed. It was compensated by the reduced slab rates but people opted for old regime because it was beneficial for them. Then the next year Govt again reduced some of the new regime rates but that also did not bring the difference much down. Last two years Govt again rationalised the rates from that angle and now new regime is looking as beneficial. Of course it depends on the individual as which slab one belongs to.
I think that for those whose earnings are less than 8-10 lakhs per year, the new regime is alright. Above that people have to calculate for their individual cases.

Thoughts exchanged is knowledge gained.

#779077

06 May 2024 16:24

Joined:	02/06/2009
Level:	Diamond
Points:	145594

Points:	5

After starting my career as a freelance consultant I can't submit my returns as an employee. So I am filing my returns through a tax consultant only. He is filing my IT returns as per the old regime only. I never got into the details. But he says there will not be much difference in the tax to be paid in these two formats. My sons are in the IT field. Both of them are submitting their returns in the new regime format only. They are not claiming any tax rebate under other sections. They are also taking the assistance of a tax consultant.
I am not very well versed in these two formats. But my sons say that the new format is hassle-free. One can decide the regime based on their income level, available exemptions, deductions, and personal financial goals. I recommend individuals contact a professional and discuss with him all the matter and then decide on the regime to be followed.

drrao
always confident

#779079

06 May 2024 16:54

Joined:	25/11/2014
Level:	Diamond
Points:	43292

Points:	4

I always prefer to go to the tax - consultant for filling up my tax - returns. I have come to know the benefits of the new format providing us substantial relief by way of tax - returns. Since the same tax - consultant takes up my case every year in filling up returns and the same process is being used every year by himself, I never ask him what benefits I am receiving by way of filling of my taxes in the new format.
Being a senior citizen, my tax - deduction is not to the substantial level and hence I did not bother to know to what extent, the new regime is hassle free.

#779081

06 May 2024 17:30

Joined:	10/12/2016
Level:	Diamond
Points:	109183

Points:	2

Dr Rao, during last 4 years the Income Tax department has gradually brought down the tax rates for the lower slabs and due to that filing of tax return as per new regime would be better for most of us. You can check that using the comparison tables available in financial sites in the internet.
Earlier, I was also filing as per old regime but now that is not needed.

Knowledge is power.

Which regime do you choose while filing Income Tax return?

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