Hello everyone, we welcome you to another beautiful clip,
in this we will see old tax regime should be selected or
new tax regime, which client should opt under which regime
so that his tax liability does not become more so that his
TDS does not decrease more, all this preparation, all this
hard work, we are going to learn in this clip, so I believe
you all are ready because I am also ready, yes sir, we both
are ready to understand this beautiful topic.
And see this topic is a very red hot topic, it is in great
demand, many people want to know whether they should go to
the old tax regime or the new tax regime, and if in the old
tax regime you feel that the tax liability is coming more,
TDS is decreasing more, we should try the new tax regime,
then you should know that how you can come in the new tax
regime, we will tell you all those things in this clip,
that when, where, how will it be better, through some case
studies.
But see friends, we will keep the calculation complete,
understand things completely and go to the depth of things,
so don't be in a hurry with me, I don't take so much time
from you, I take a little less than what is needed and I
explain everything to you, if you have a problem with that
too, then I think you should improve your approach a
little, okay sir, no problem sir, we are ready, you get us
done, take things ahead and go, I said ok, let's start,
write old tax regime vs new tax regime,
one should we do, this is today's fight, old tax regime vs
new tax regime, the hands of the wrestlers have
met, let's see who wins in which case, let's start writing
through some case studies, number 1, example number 1,
everyone, everyone has to write, everyone has to write,
please write, an assessee, Mr.
Rajiv, we have called Akshay Kumar from welcome picture, an
assessee
Mr. Rajiv having salary income of rupees 7,50,000 rupees,
7,50,000 rupees, deduction under section
ATC is available to the full extent, deduction under ATC is
available to the full extent, okay sir, please write, in
this scenario, we have to find out that old tax regime will
be good for this client or it should come under new tax
regime, how will we do, we will do comparison of his income
and on his income, how much tax is being made in old tax
regime and how much tax is being made in new tax regime,
after that we will see which one is good for elder brother,
right, yes sir, and see this is
case, so if new tax regime is good for him and he has to
opt for new tax regime, then there will be an option in his
ITR form to accept new tax regime, we will do it there, but
what if I write PGPP income instead of salary, then sir, he
will have to fill a separate form, form 10 IE, so don't
make a big difference, here there is salary, so you don't
have to fill, instead of salary, in this example, if PGPP
income is there, then you have to fill form 10 IE, you will
have to fill, ok, ok sir,
I will write solution on next page, write my friends, new
regime, old regime, income under head salary, income under
head salary,
income under head salary,
how much is it, 7,50,000, now income will be 7,50,000, you
are going to take it out, whether it is new or old, so
according to 7,50,000, tax will have to be taken out on new
and on old, so income will be there, 7,50,000, yes sir, I
will show you section in income tax act, there is a section
in income tax act, it gives deduction of salary of 50,000,
50,000 rupees, let me show you, wait, you should be able to
see, it gives feel, increases confidence,
thing will be remembered for a long time, right, right sir,
I will show you bare act only, give me some time, I will
show you bare act only, it is not written in act, it will
be shown in income tax only, give me a sec, I have opened
google, I will show you, google devta is here, google devta
is here, google devta is here, welcome google devta,
welcome, welcome, here you will write income tax, and
income tax India, click here, income tax
India, do not go to e-filing portal, ladies and gentlemen,
please mark a point, we do not want to go to income tax
e-filing portal, no, no, no, we have to come to this
website, income tax India.gov.in, income tax India.gov.in,
so here you will come, click on first link and below you
can see, here is tax laws and rules acts, so click on acts,
click on acts,
income tax act 1961, income tax act 1961, click on it, and
friends, section no.16, section no.1, go to section no.16,
visit there, you will be welcomed there, section no.16,
come quickly, children are waiting, section no.16,
deduction from salaries, open this, open this, bear act is
opening, bear act is opening, come let us read, sir, I
cannot see anything, it is looking small, I said, take
this, I made it big, now you can see, yes sir, now you can
see, so now read, the income chargeable under
salary shall be computed after making the following
deductions, namely, a deduction of 50000 rupees, 50000
rupees or the amount of salary, whichever is less, 50000
rupees is a fixed deduction, if someone's salary is more
than 40000, then he will get a deduction of 40000, then if
we give a deduction of 50000, then the government will say,
take it from us, you are very poor, donation is not going
on here, if someone's salary is more than 50000, then he
will get a deduction of 50000, this is
standard ad-hoc deduction, close your eyes and take a
deduction of 50000, this is called standard ad-hoc
deduction, this government brings these things to get
votes, and if someone's salary is less than 50000, then he
will get a deduction of that much, how much salary is less
than 50000, 40, 30, 20, whatever it is, ok sir, we
understand what you are saying, so this 50000 will be
deducted from there, come let us go back there, let us go
back again, so friends, directly 750000, directly 750000
will not be taken, before this, the standard deduction is
minus, there is a deduction, minus standard deduction, what
is the fun, this 50000 standard deduction is in the old
regime, and it is said, I have also said that you do not
get deductions in the new tax regime, there are deductions,
80c, that is all, that will not be found, but the latest
budget introduced this scheme, that they have allowed the
salary of 50000 to the standard deduction in the new
regime, when the new regime came, then
standard deduction was not done, 50000, they allowed, now
here in the new regime, this 50000 will be minus in both
places, ok sir, so friends, how much income will be left,
this is called GTI gross total income, that is, your income
is actual, after deducting the standard deduction from it,
the income that comes, that is called gross total income,
in both cases it is 700000, in both cases it is 700000, my
dear friend, 700000, 700000, yes sir, ok, after this, after
this chapter 6a deductions,
income tax faculty must have told you, you get deductions
in chapter 6a, you get deductions, minus deductions under
chapter 6a, that is the same deduction that was being
discussed here, deduction under 80c, LIC, PF, school fees
of children, PPF, all your investments, all those
deductions are available in 80c, and full deduction is
allowed, that is, in 80c, maximum to maximum 1.5 lakh
deductions can be obtained, and your example wrote that
yes, 1.5 lakh deductions are allowed.
We have invested so much according to ATC that we can get a
deduction of 1.5 lakhs.
But, but, but,
This 1.5 lakhs chapter 6 ATC section deduction is available
only in the old regime.
It is not allowed in the new regime.
Why? The new regime says that we will reduce the tax rate
and take away the deduction.
The old regime says that we will give the deduction.
The tax rate is a little expensive in our country, so what?
Now, they are doing the same analysis case to case.
They are doing the same analysis.
The new regime says that the deduction is less and the tax
rate is lower.
Tax rate is lower.
The old regime says that deductions are allowed but the tax
rate is higher.
Now, they are checking which one will be better.
Now, what will come out is the taxable income.
The income which will come out, which will give the benefit
is the taxable income.
This is 7 lakhs and this is 5.5 lakhs.
5.5 lakhs rupees.
5.5 lakhs.
Ta-ta-ta-ta-ta-ta-ta.
This is the taxable income.
This is the income on which tax will be imposed.
On which tax rates will be imposed, slab rates will be
imposed.
This is the income.
Ta-ta-ta-ta-ta-ta.
Impose the tax rate.
According to the new regime, what is the tax slab?
According to the new regime.
First, the total income.
7 lakhs rupees.
As per the new regime.
Let's find out how much tax is being imposed on this.
Sir, slab rates of the new regime.
Your income tax faculty must have told you.
If I start discussing slab rates with you now, then our
journey will go somewhere else.
That's why I request you not to ask me slab rates.
I will show you the percentage.
How much tax is coming.
But if you want to discuss the slab rates, then that will
not be possible.
So, I will not be able to do that here.
The income tax sir must have done it.
Sir, in the new tax regime, first 3 lakhs.
First 3 lakhs.
The income from 0 to 3 lakhs.
Zero tax rate.
Nil tax rate.
Means the basic exemption limit is 3 lakhs.
Basic exemption limit is rupees 3 lakhs.
After that, from 3 lakhs to 6 lakhs.
From 3 lakhs 1.
From 3 lakhs 1 to 6 lakhs.
The tax rate on the next 3 lakhs is 5%.
Are you understanding?
First on 3 lakhs, zero.
Then 3 lakhs 1 to 6 lakhs.
Means on the next 3 lakhs.
From 3 lakhs 1 to 6 lakhs, how much will it be? 3 lakhs sir.
Right.
That 3 lakhs will take 5%.
How much will that be? 15,000.
That will be 15,000.
After that, the rate from 6 lakhs to 9 lakhs is 10%.
And you don't have to go to 9.
You have to stop at 7.
So this will be from 6 lakhs 1 to 7 lakhs.
Sorry.
10%.
10% on the next 1 lakh.
This will be 10,000 rupees.
So this comes, my dear friends.
25,000 rupees.
How much? 25,000 rupees.
And the fun part.
There is a rebate in section 87A.
Rebate comes under section 87A.
Rebate says,
All the taxes on the income up to 7 lakhs,
So 25,000 will be forgiven.
And finally,
Your tax payable would be 0.
New tax regime.
Okay, new tax regime.
This says,
There is no tax on the income up to 7 lakhs.
Yes.
Means the tax was being made, 25,000.
But it is forgiven.
A new section,
I mean,
I should not say new.
Through a different section,
Through section 87A,
It is forgiven.
It is not that,
In slab rate,
From 0 to 7 lakhs,
It is nil.
No, no.
In slab rate, it is only 3 lakhs.
Calculation will be done accordingly.
But, In the end,
If it is seen that,
Your total income is up to 7 lakhs,
Then your entire tax will be forgiven.
Otherwise, If it was more than 1 rupee,
Then you would have to pay the entire tax.
From 3 lakhs to 7 lakhs.
15, 10,
And whatever comes on 1 rupee,
That also has to be paid.
You would have to pay the entire tax.
Okay? Okay, sir.
What comes on 1 rupee? 10%, 0.1.
Assume that,
If your income is 7.5 lakhs,
Then it is not that, 7 lakhs is forgiven,
But you have to pay tax on 50,000.
No, no, no.
Then the basic exemption limit is 7 lakhs.
If it is 7.5 lakhs,
Then what does it mean?
That brother,
You will have to pay this 15 too.
And then,
From 6 to 7.5 lakhs, 10% on 1.5 lakhs, 15, 15, 15,
You will have to pay 30.
87A will not be able to help you.
It helps on the income up to 7 lakhs.
Now, what are the things about the old tax regime, sir?
Let's take a look at the old tax regime too.
Let's talk about the old tax regime.
As per old tax regime,
What is the total income? 5.5 lakhs.
The income is less there, sir.
It is possible that the tax has come out less there.
But there,
The rates are also high.
Let's see, let's see what happens.
Total income 5.5 lakhs.
As per,
Old tax regime.
As per old tax regime.
We will deduct tax on this.
Old tax regime says,
First, 0 on 2.5 lakhs.
After that, 5 lakhs from 2.5 lakhs.
On the next 2.5 lakhs.
From 2.5 lakhs to 5 lakhs.
Means, 5% on the next 2.5 lakhs.
Which will come out to be 12,500.
And friends,
After that,
From 5 lakhs to 10 lakhs,
You have to give 20%.
But we will not go till 10 lakhs.
We will stop at 5.5 lakhs.
From 5 lakhs to 1 lakh, 5 lakhs to 50,000.
On the next 50,000, 20% means 10,000.
So, 12,500 and 10.
How much is this? 22,500.
Health and education says,
You have to give separately.
Sir, to help here,
Section 87A rebate will not come?
It comes.
In old tax regime also,
Rebate of 87A comes to help.
But it says,
In old tax regime,
If your total income is up to 5 lakhs,
We are talking about taxable total income.
If your taxable total income is up to 5 lakhs,
Then your entire tax will be forgiven.
As much as possible.
But here,
Income has gone up to 5.5.
So, 87A help
Will not be able to do.
And friends,
Are you seeing the result?
For a common man,
Do you know how much is this money? 22,500 rupees.
You can clearly see.
New tax regime,
Do not pay a single rupee tax
For 7 lakhs salary.
And old tax regime, 22,500 plus 4%
Health and education says separately.
Please, Be very careful,
While deciding the regimes.
Be very very careful.
You can see it here.
How much difference is there?
It is a very ordinary case.
Think, How much difference can come in crores?
More in lakhs?
Yes, sir.
We understand what you are saying.
Good, good, good, good, good.
Well done.
Make a comparison like this.
And then,
Select new or old.
Now, In its new regime,
Tax is coming out less.
And this guy is salaried.
This guy is salaried.
So, when we fill its ITR,
ITR 1
ITR 1 will go for salary.
In that only,
Option comes.
Do you want to
Opt for new tax regime?
In that only,
Tax will be calculated and come.
In that only,
Tax will be calculated and come.
Okay? Okay, sir.
But, But, If this is PGVP,
Its PGVP income,
Business income,
So, I have taught you during concept.
During concept,
What I have taught you during concept?
I have taught you this only during concept,
That then,
It has to fill Form 10 IE.
Then, It has to fill Form 10 IE.
It has to fill Form 10 IE.
First.
Then, It will go to fill ITR.
When Form 10 IE will be filled, 15 digit acknowledgement
number will be generated.
That will be put in ITR.
Then, New tax regime will come.
Okay, sir.
Whether it is salary or business income,
Calculation will remain the same.
But, How will Form 10 IE be filled?
When will it be filled?
When will it not be filled?
This, I have told you here.
Okay? Sir, One more thing should be done.
Case study should be done.
Now, From this,
New tax regime will be good.
It will not always be like this.
New tax regime will be good.
Sometimes, Old tax regime can also be good.
Sometimes, Both can be same.
So, We will cover all cases.
It is our duty.
Write example number 2.
And, How did you take 7 lakhs?
Sir, Why did you accept salary of 7 lakhs only?
See, We will accept in some other coming examples.
But, We accepted because of 7 lakhs.
Basic limit is 7 lakhs.
It is allowed there.
In new tax regime.
So, There, More discussion is needed.
Are you understanding?
Okay.
So, Accordingly, We are giving you concept.
Now, Your client's salary is 7 lakhs.
It is less than 7 lakhs.
It is more than 7 lakhs.
You have to apply these things.
You would find that you are able to solve.
Write, Case B.
Example number 2.
Now, I will write.
Give me a sec.
Example number 2.
Now, I will write.
Give me a sec.
Example number 2.
Now, I will write.
Give me a sec.
Example number 2.
Now, I will write.
Give me a sec.
Example number 2.
So, let's take an example of this guy, what was his name?
My friend's name was Mr. Rajiv.
Let's take Rajiv this time also.
Let's take different cases of this guy.
His name is good.
An Assessee.
Mr. Rajiv.
Mr. Rajiv, having income from salaries, Rs. 7,50,000.
Rs. 7,50,000.
Sir, did you take the same amount? Sir, did you take the
same amount?
Last time also it was Rs. 7,50,000.
Yes, yes, we will make some changes in the deductions.
Deductions under section 80C and 80D are available to the
full extent.
Friends, let's solve this.
Everybody write this down.
This time there is a change.
You can feel it.
If deductions are available under 80D also.
Do you know what are the main deductions?
There are three main deductions.
Those which are discussed a lot.
80C, 80D and that interest on housing loan, 80E.
These are the main deductions which are discussed a lot.
So, let's take 80C once.
If 80D also comes in picture, because there are many
clients like this.
Whose 80C and 80D both have deductions.
So, we have to see their deductions also.
And then what is happening in that case.
Somebody has seen the previous case in 80C and 80D.
Somebody has 80C and 80D also.
So, let's see this case.
Okay, sir.
Okay, okay.
Write it down.
Write the solution.
Income under head salaries.
7,50,000
7,50,000 7,50,000 7,50,000 7,50,000
Minus standard deduction under section 16.
Standard deduction under section 16.
50,000
Gross total income.
7,50,000
7,50,000 7,50,000
7,50,000
Very good.
80C and 80D deductions.
You won't get it in new regime.
You get it in old regime only.
Less
Deductions under section 80C and 80D.
New regime says, don't take name of deduction in front of
me.
If you want to take deduction, go to old regime.
I can do tax rates cheaply.
And old regime says, tax rates are expensive.
But if there is full deduction of 80C, then come and take
1,50,000.
And do you know how much is full deduction in 80D? 50,000
Minimum 50,000
There are many in full.
50, 75, 100,000
So we have taken a very low one.
We have taken a very low one.
What happens in 80D?
In 80D, you can get your medical insurance and family
separate.
And you can get your parents separate.
Sir, parents don't come in family.
In income tax act, parents don't come in family.
Spouse and children come in family.
Spouse means life partner.
If you are she, then your he.
And if you are he, then your she.
I said your she.
Your she.
Okay? Okay, sir.
So, it is like this.
For parents, you can take 25,000 separately.
And for self and family, you can take 25,000 separately.
25 and 25 becomes 50.
Sometimes it becomes 75.
This 25 and 50.
Sometimes both places are 50-50.
So that is the analysis of 80D.
We are not doing the analysis of 80D here.
Okay? Okay, sir.
Be very clear on it.
So this will happen, sir.
Now we will get taxable income.
On which tax will be applied.
7 lakh rupees is coming in new tax regime.
And how much came in the old tax regime? 5 lakh rupees.
5 lakh rupees came in the old tax regime.
What is the fun?
According to the new tax regime, we had taken out 7 lakhs.
How much was coming?
It was coming 25.
But it becomes 0 because of 87A.
So how much tax will remain on this?
On the income of 7 lakhs.
0.
In the new regime.
And in the old regime.
Whatever tax is being made on 5 lakhs.
That will also become 0.
Because.
In the old tax regime.
87A says.
Whatever tax is on the total income of 5 lakhs.
That will be forgiven.
On the total income of 5 lakhs.
12,500 rupees will be made.
First 0 on 2.5 lakhs.
Then 5 on 2.5 lakhs.
5% on the next 2.5 lakhs.
12,500.
And that will be forgiven.
Because of 87A.
So if your salary is 7.5 lakhs.
And you have 1.5 lakhs in 80C.
And in 80D.
There is even a deduction of 50,000.
If it is of 75 lakhs.
Then the thing is different.
Even if you have a reduction of at least 50,000.
Then in both the regimes.
Your tax will be 0.
In both the regimes.
Your tax will be 0.
Okay.
So in this scenario.
Both the regimes become equal.
In this particular scenario.
Both the regimes.
They are looking equal.
Friends.
Yes sir.
Absolutely.
We can see.
Both the regimes are equal.
All of them are equal.
Both of them are equal.
So what was in the first regime?
Sir.
The new one was good.
And here.
Here.
Both are equal.
Sir.
Take anything.
What difference does it make?
Example 3.
An Assessee Mr. Rajiv.
Mr. Rajiv.
Having income from salaries.
Rupees 12,50,000.
Deductions under section.
ATC and ATD are available to the full extent.
Means.
In the second case.
In the second example.
What will happen if the salary amount increases?
Write it down.
Everybody write it down.
An Assessee Mr. Rajiv.
Having income from salaries.
Rupees 12,50,000.
Deductions under section.
To the full extent.
Deductions under section.
To the full extent.
Sir.
How did you grow up suddenly?
I feel like seeing you once.
How does it feel?
Let's do it a little this way.
Things.
Let's go.
Sir.
Let's go.
We will do the solution of this.
Let's do this.
Particular New Tax Regime.
Old Tax Regime.
Let's speed it up a bit.
Income underhead salaries 12,50,000, 12,50,000 and
12,50,000 less standard deduction under section 16, 50,000,
50,000 gross total income 12,00,000, 12,00,000 less
standard deduction under section 16, 50,000, 50,000 gross
total income 12,00,000, 12,00,000 less deductions under
section 16, 50,000, 50,000 gross total income 12,00,000,
12,00,000 less deductions under section 16, 50,000, 50,000
gross total income 12,00,000, 10,00,000 less deductions
under section 16, 50,000, 50,000 gross total
12,00,000, 10,00,000 less deductions
under section 16, 50,000, 50,000 less deductions under
section 16, 50,000, 50,000 less deductions under section
16, 50,000, 50,000 less deductions under section 16,
50,000, 50,000 less deductions
on 12,00,000 tax on 12,00,000 tax on 12,00,000 tax on
12,00,000 under new regime.
under section 16, 50,000, 50,000 less deductions under
section 16, 50,000, 50,000 less deductions under section
16, 50,000, 50,000 less deductions under section 16,
50,000, 50,000 less deductions
under section 16, 50,000, 50,000 less deductions under
section 16, 50,000, 50,000 less deductions
under section 16, 50,000, 50,000 less deductions under
section 16, 50,000, 50,000 less deductions
under section 16, 50,000, 50,000 less deductions under
section 16, 50,000, 50,000 less deductions
under section 16, 50,000, 50,000 less deductions under
section 16, 50,000, 50,000 less deductions
under section 16, 50,000, 50,000 less deductions under
section 16, 50,000, 50,000 less deductions
under section 16, 50,000, 50,000 less deductions under
section 16, 50,000, 50,000 less deductions under section
16, 50,000, 50,000 less deductions under section 16,
50,000, 50,000 less deductions
under section 16, 50,000, 50,000 less deductions under
section 16, 50,000, 50,000 less deductions
under section 16, 50,000, 50,000 less deductions under
section 16, 50,000, 50,000 less deductions
under section 16, 50,000, 50,000 less deductions under
section 16, 50,000, 50,000 less deductions under section
16, 50,000, 50,000 less deductions under section 16,
50,000, 50,000 less deductions
Okay, so let's meet now in the practical discussion of 10
IE, we will go to the portal and see how to fill 10 IE.
Okay, let's move.