Automated Income Tax Preparation Excel based Software with New and Old Tax Regime Introduced in Budget 2020

Boost Indian taxpayers were hoping for lower Income Tax limit deductions, in new tax regime. This Income Tax rates but took away all the deductions and exemptions available to the taxpayers, and it was announced that the taxpayer can choose between the old and the U/s 115 Back.

So now, most of us have to decide which regime to opt through the new option Form 10-IE  for. And that can be confusing. So if you are wondering which

So, let’s start. while our current tax system has high Income Tax Act many of the Income Tax. The Government of India through the addition of clauses to the taxable income and hence pay less exemptions are part of your salary that you don’t pay taxes on like HRA, LTA deductions involve investing, saving, or spending on specific items. In fact, by claiming deductions under Section 80C, you can bring down your taxable income by rupees 1.5 lakh. Apart from this, there are several other sections that let you claim deductions on things, ranging from interest on your home and education loans to premiums you pay for health insurance.

Here are the most common exemptions and deductions availed by Indian taxpayers, these exemptions and deductions together can bring down your taxable income by lakhs. However, it also means that every year, you have to find ways to optimize your salary and investments, so as to keep your taxable income to the minimum.

Now, let’s look at the new tax regime. The Income Tax, the Income Tax rates have lowered in the sub rupees 15 lakh range. 2nd, all the exemptions and deductions that were being used by taxpayers in the existing regime won’t be available in the new regime.

Here is a comparison between the existing, and the new tax slabs.

Old and new So now that you have learned the difference between the regimes arises the question, which one should you pick. Unfortunately, there is no single answer to this as Indian tax rules are complex in nature. While figuring out what options to go for might look complicated if you approach it in a systematic way, it is not quite difficult to figure out. Here is what you need to do.
Step one, calculate all the exemptions that you are availing like HRA, LTA, phone bills, etc. Remember, all these become taxable. If you are willing to choose to revert to the salaried employee to deductions that you automatically get or the standard deduction of rupees 50,000, and your contribution towards your employee provident fund that is EP F in the new regime, you won’t be able to claim deductions, even on EP F, even though you will continue putting money in it. Moreover, you cannot claim deductions on home loan repayments for a premium paid for insurance policies which still now have helped to reduce your taxable income.

Now, combine these exemptions and deductions and subtract them from your salary to see what is the taxable income and what it would be. If you let go of these deductions and exemptions. This should be the deciding factor for which regime, you should go for wondering how deductions and exemptions will impact taxes in both regimes.

 Let us understand with an example. First, let us take the example of someone who is availing, very few exemptions and deductions. This is Permit Sing is a bank employee who earns rupees 8 lakh, a year being salaried, he contributes towards CPF, and also gets HRA and LTA. In this Financial Year 2020-21, he availed rupees 25,000 on his travelling, and he will be claiming it due to his family obligations. He is not able to save anything beyond his CPF contribution.

Now let’s take out the Income Tax system works better. In fact, in the existing Income Tax deduction, under Section 80 D. Also, to save more taxes from his salary. He made additional investments of rupees 30,000 in NPS similar to them it. He also claimed the LTA amount of rupees 25,000, which is Income Tax regime will benefit him. In this case, the existing choose.

Income Tax Calculator for the F.Y.2020-21
Feature of this Excel Utility:-

 1) This Excel utility prepares and calculates your Section115 BAC (New and Old Income Tax Regime

 3) This Excel Utility has a unique Salary Structure for Government and Non-Government Employee’s Salary Structure.

 4) Automated Income Tax Income Tax

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