Optimize Your Tax Savings with Updated Slabs, Deductions, and Calculations
Introduction
Understanding India’s income tax regimes is critical for maximizing savings. With the 2025-26 budget introducing a proposed regime, taxpayers now have three options: the Old Regime, New Regime (2023-24), and Proposed Regime (2025-26). This article compares all three, calculates tax liability for a ₹32.36 lakh salary, and identifies the most beneficial option.
1. Old Tax Regime (FY 2023-24)
Key Features:
- Deductions/Exemptions: HRA, LTA, Section 80C (₹1.5L), 80D (₹50k), home loan interest (₹2L), and standard deduction (₹50k).
- Tax Slabs:
- Up to ₹2.5L: 0%
- ₹2.5–5L: 5%
- ₹5–10L: 20%
- Above ₹10L: 30%
Calculation for ₹32.36L Salary:
| Component | Deduction (₹) |
|---|---|
| Gross Salary | 32,36,800 |
| Standard Deduction | 50,000 |
| Section 80C | 1,50,000 |
| Section 80D (Health) | 50,000 |
| Section 24(b) (Home Loan) | 2,00,000 |
| NPS (80CCD(1B)) | 50,000 |
| Professional Tax | 2,500 |
| Taxable Income | 27,34,300 |
Tax Liability:
- Up to ₹2.5L: ₹0
- ₹2.5–5L: ₹12,500
- ₹5–10L: ₹1,00,000
- Above ₹10L: ₹5,20,290 (30% of ₹17.34L)
- Total Tax: ₹6,32,790 + 4% cess (₹25,311) = ₹6,58,100
2. New Tax Regime (FY 2023-24)
Key Features:
- Deductions: Only ₹50k standard deduction.
- Tax Slabs:
- Up to ₹3L: 0%
- ₹3–6L: 5%
- ₹6–9L: 10%
- ₹9–12L: 15%
- ₹12–15L: 20%
- Above ₹15L: 30%
Calculation for ₹32.36L Salary:
| Component | Deduction (₹) |
|---|---|
| Gross Salary | 32,36,800 |
| Standard Deduction | 50,000 |
| Taxable Income | 31,86,800 |
Tax Liability:
- Up to ₹3L: ₹0
- ₹3–6L: ₹15,000
- ₹6–9L: ₹30,000
- ₹9–12L: ₹45,000
- ₹12–15L: ₹60,000
- Above ₹15L: ₹5,06,040 (30% of ₹16.86L)
- Total Tax: ₹6,56,040 + 4% cess (₹26,242) = ₹6,82,282
3. Proposed Tax Regime (2025-26)
Key Changes:
- Standard Deduction: Increased to ₹75,000.
- Tax Slabs:
- Up to ₹4L: 0%
- ₹4–8L: 5%
- ₹8–12L: 10%
- ₹12–16L: 15%
- ₹16–20L: 20%
- ₹20–24L: 25%
- Above ₹24L: 30%
Calculation for ₹32.36L Salary:
| Component | Deduction (₹) |
|---|---|
| Gross Salary | 32,36,800 |
| Standard Deduction | 75,000 |
| Taxable Income | 31,61,800 |
Tax Liability:
- Up to ₹4L: ₹0
- ₹4–8L: ₹20,000
- ₹8–12L: ₹40,000
- ₹12–16L: ₹60,000
- ₹16–20L: ₹80,000
- ₹20–24L: ₹1,00,000
- Above ₹24L: ₹2,28,540 (30% of ₹7.61L)
- Total Tax: ₹5,28,540 + 4% cess (₹21,142) = ₹5,49,682
Comparison of Tax Liability
| Regime | Tax Payable (₹) | Savings vs. Old Regime |
|---|---|---|
| Old (2023-24) | 6,58,100 | – |
| New (2023-24) | 6,82,282 | -₹24,182 |
| Proposed (2025-26) | 5,49,682 | ₹1,08,418 |
Key Takeaways
- Old Regime (2023-24): Best if you can maximize deductions (e.g., home loan, investments).
- New Regime (2023-24): Suitable for those with minimal deductions.
- Proposed Regime (2025-26): Most beneficial due to revised slabs and higher standard deduction, saving ₹1.08L vs. the old regime.
FAQs
Q: Can I claim deductions in the proposed 2025-26 regime?
A: No, only the ₹75,000 standard deduction is allowed.
Q: Which regime should I choose?
A: If the proposed regime is implemented, it offers the lowest liability. For FY 2023-24, the old regime is better for high earners with deductions.
Q: Are HRA/LTA available in the new regime?
A: No. The new and proposed regimes exclude most exemptions.
Conclusion
The proposed 2025-26 regime simplifies taxes and offers significant savings for ₹32.36L earners. However, always evaluate deductions under the old regime to optimize savings. Consult a tax advisor for personalized planning.
अचार्य अभय शर्मा एक अनुभवी वेदांताचार्य और योगी हैं, जिन्होंने 25 वर्षों से अधिक समय तक भारतीय आध्यात्मिकता का गहन अध्ययन और अभ्यास किया है। वेद, उपनिषद, और भगवद्गीता के विद्वान होने के साथ-साथ, अचार्य जी ने योग और ध्यान के माध्यम से आत्म-साक्षात्कार की राह दिखाने का कार्य किया है। उनके लेखन में भारतीय संस्कृति, योग, और वेदांत के सिद्धांतों की सरल व्याख्या मिलती है, जो साधारण लोगों को भी गहरे आध्यात्मिक अनुभव का मार्ग प्रदान करती है।