What Is Life Insurance?
At its essence, a life insurance policy is a contract signed between the life insurance provider and a policy holder.
You can calculate income tax from salary based on the tax slab you fall under in the old and the new regime. In the old regime, the income tax computation would take into account your gross income and any exemptions/deductions claimed under section 80C of the Income Tax Act of 1961. A salary tax calculator can help you calculate tax online making the process of income tax computation an easy one for you.
In the new regime, the process of calculating income tax from salary remains the same. However, the new income tax calculator would take into account only the tax slab you fall under and the limited exemptions that are acceptable under the new tax regime.
You could work out the math by applying the income tax calculation formula for computation of income from salary. However, this can be a tedious and time-consuming process. Use the IndiaFirst Life income tax calculator to calculate taxes in minutes. The online income and tax calculator are free to use and can quickly crunch the numbers for you.
After computation of income, calculate tax online with IndiaFirst Life’s online income tax calculator. This will help you see which tax regime presents the maximum benefits for you. Budget 2020 has left the option of both regimes open for taxpayers. The primary goal of the new tax regime is to simplify personal ITax calculation and payments. For those who do not claim any exemptions or deductions, the new regime offers a lowered tax rate depending on your income tax slab.
However, in order to do this, the taxpayer would have to let go of a number of exemptions and deduction benefits, including the standard deduction of Rs. 50,000, HRA, LTA, housing loan interest, PPF contribution, premiums paid towards life insurance policies, investments made in Equity Linked Savings Schemes (ELSS), etc. All of these deductions could stand to save you a substantial sum in the old tax regime.
There is no one-size-fits-all answer to this old vs. new tax regime question. It depends on your current tax slab and whether you are ready to give up the benefits of the old regime. Evaluate both options, calculate income tax online with the help of the online income tax calculator to arrive at the best option for you.
Yes, an individual taxpayer has the option to switch between the old and new regimes year-on-year. If you are a salaried professional or a pensioner, you can us the new tax calculator to check how much you would save in either tax regime. Make an informed choice after consulting the online taxable income calculator.
If you change your mind next year, you can switch to the other tax regime option, and back again in the next financial year. However, business income earning taxpayers do not have this switching option. So, as long as you are not earning any business income, you are free to make the switch.
No. The deductions that you can avail of under Section 80C have not been scrapped. They are still available for those who choose to file under the old tax regime. However, after computing your tax liabilities using the new income tax calculator, if you choose to file under the new tax regime, then deductions under section 80C can no longer be claimed by you in that tax year.
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