Understand Your Income Tax: A Comparison of Old vs New Tax Regimes with Fincalc Income Tax Calculator

The introduction of new tax regimes has brought about significant changes in income tax calculations. While it's true that investing in various sections can help reduce your tax liability, the old tax regime still offers more options for saving maximum income tax. In this article, we'll delve into a detailed comparison between old and new tax regimes using Fincalc Income Tax Calculator.

Income vs Income Tax: A Graphical Representation

The graph below illustrates the difference in income tax calculations under both tax regimes:

As depicted by the green line, income tax with the new tax regime is lower only when your income exceeds 12 Lacs. Below this threshold, there are limited options for saving maximum income tax. However, if you have an income above Rs., you can opt for the old tax regime and make strategic investments to reduce your tax liability.

Calculating Income Tax: A Personalized Approach

Every individual's financial situation is unique, making it essential to assess their specific circumstances before deciding on a tax regime. With Fincalc Income Tax Calculator, you can enter your investment amounts iteratively to determine the optimal strategy for minimizing income tax. This calculator allows you to compare your tax outgo and make informed decisions about investments.

Old vs New Tax Slab Rates: A Comparison

Here's a table outlining the old and new tax slab rates for FY 2021-22:

As evident, the new tax regime has reduced tax slab rates, resulting in lower income tax liabilities if you don't claim any investment deductions. Furthermore, only the old tax regime allows you to claim standard deductions up to Rs. This is because the new tax regime does not permit investment deductions.

Choosing the Right Tax Regime

It's crucial to select a tax regime based on which you'll pay less income tax. By using Fincalc Income Tax Calculator, you can determine your optimal strategy and choose the right tax regime for your financial situation.

Instant Calculation with Fincalc Income Tax Calculator

Our calculator makes it easy to understand your income tax liabilities under both old and new tax regimes. Click here to access the instant calculator and start calculating your taxes today!

In conclusion, Fincalc Income Tax Calculator is a valuable tool that helps individuals navigate the complexities of income tax calculations under different tax regimes. By using this calculator, you can make informed decisions about investments and choose the right tax regime for optimal savings.

Fincalc income tax calculator