Explained: How much will be the tax saving in the old and new system of income tax? Understand multiplication according to salary – tax saving in new tax regime 2023-24 vs old tax regime post budget announcements know calculation
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| salary level | tax liability in the old regime | Tax liability in the new regime | Tax Liability in Revised New Regime (2023) | Tax saving – old vs new regime | Tax Saving – New vs Revised New Regime (2023) |
| 5,00,000 | , | , | , | , | , |
| 6,00,000 | , | 23,400 | , | , | 23,400 |
| 7,50,000 | 23,400 | 39,000 | , | 23,400 | 39,000 |
| 10,00,000 | 75,400 | 78,000 | 54,600 | 20,800 | 23,400 |
| 12,50,000 | 1,32,600 | 1,30,000 | 93,600 | 39,000 | 36,400 |
| 15,00,000 | 2,10,600 | 1,95,000 | 1,45,600 | 65,000 | 49,400 |
| 25,00,000 | 5,22,600 | 5,07,000 | 4,52,400 | 70,200 | 54,600 |
| 50,00,000 | 13,02,600 | 12,87,000 | 12,32,400 | 70,200 | 54,600 |
| 1,00,00,000 | 31,48,860 | 31,31,700 | 30,71,640 | 77,220 | 60,060 |
The revised new income tax regime offers rebate under section 87A on taxable income up to Rs 7 lakh. In this way, if your income is less than Rs 7 lakh and you adopt the revised new system, then it will be beneficial. You will not need to pay any tax in this. Apart from this, you will not have to invest under section 80C to claim tax deduction. It is needed in the old system of income tax to reduce the taxable income. It can be seen in the table that if your taxable income is Rs 6 lakh, then there will be a saving of Rs 23,400 in the revised new tax regime.
In the revised new tax regime, standard deduction of Rs 50,000 has been allowed to the salaried class. In such a situation, if your income is Rs 7.5 lakh, then by claiming standard deduction, the taxable income can be brought down to Rs 7 lakh. Due to this, the tax liability will remain zero in the new revised tax regime. You will be able to save Rs 23,400 as compared to the old tax regime and Rs 39,000 as compared to the new tax regime.
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