Step-by-step Guide to Calculate Income Tax Under New Tax Regime - Loan Trivia

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Monday, 27 January 2025

Step-by-step Guide to Calculate Income Tax Under New Tax Regime

new regime tax calculator

The introduction of the new tax regime has brought a significant shift in the way taxpayers approach their annual income tax calculations. To assist taxpayers in navigating through this, the new regime tax calculator serves as a critical tool. Below is a step-by-step guide to using this calculator effectively.


Understanding the New Tax Regime

The new tax regime presents an alternate pathway from the old tax system. It offers lower tax rates but does away with most deductions and exemptions. It's crucial for taxpayers to comprehend this trade-off when deciding which regime suits them best.


Steps to Use the New Regime Tax Calculator

1. Input Your Details: Begin by entering your annual salary, including basic and other components, into the new regime tax calculator. This step is vital for the calculator to assess your total taxable income accurately.


2. Declare Other Income: Add any other sources of income like rental income, interest from savings accounts, or freelance work. Comprehensive income details will ensure a more precise calculation.


3. Deduct Eligible Exemptions: While the new tax regime minimizes deductions, certain exemptions such as NPS contributions are still applicable. Ensure you enter these correctly.


4. Calculate Tax: Once all details are inputted, the new regime tax calculator will process the data and provide an estimate of your tax liability under the new regime.


5. Compared with the Old Regime: It’s prudent to cross-check this calculation against the old regime to determine which one offers more savings.


Additional Info: The Download Bajaj Finserv App provides easy access to various financial services, making it convenient to manage your finances on the go. For an optimal experience, it’s essential to check your device compatibility and review the app’s terms and conditions before use. This ensures a smooth and hassle-free interaction with the app’s features.


Conclusion

The new regime tax calculator is an invaluable resource designed to simplify tax planning under the new rules. By accurately entering your income details and eligible exemptions, you can make well-informed decisions about your tax filings, ensuring compliance while optimizing savings.

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