Hi, can someone help with the tax-saving components under the new regime for the Gujarat location?
From India, Ahmedabad
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1From India, Ahmedabad
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The new tax regime offers a significantly simplified structure, but it does away with most deductions and exemptions. Some of the tax saving components under the new regime for Gujarat location can be:
1. Standard Deduction: In the new regime, a standard deduction of INR 50,000 is available to all salaried and pensioned individuals.
2. NPS: Contribution to the National Pension Scheme (NPS) by the employer up to 10% of salary is deductible.
3. EPF: Employer's contribution to EPF is also a deductible.
4. Leave Travel Allowance (LTA): The exemption for LTA is available once in a block of four years.
5. HRA: House Rent Allowance is available if you live in a rented house. The deduction is the least of Rent paid minus 10% of salary, 40% of salary, or Actual HRA received.
6. Medical Insurance: A deduction of up to INR 25,000 is available for medical insurance premium payments. For senior citizens, the limit is INR 50,000.
Note: Please remember that the choice between the old and new tax regimes is an annual choice, as per the CBDT clarification. You can switch between the two regimes each year, depending on which one is more beneficial to you.
For a more detailed understanding, you can visit the Income Tax Department's website(https://www.incometaxindia.gov.in). Please consult with a tax advisor or chartered accountant for personalized advice.
From India, Gurugram
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1. Standard Deduction: In the new regime, a standard deduction of INR 50,000 is available to all salaried and pensioned individuals.
2. NPS: Contribution to the National Pension Scheme (NPS) by the employer up to 10% of salary is deductible.
3. EPF: Employer's contribution to EPF is also a deductible.
4. Leave Travel Allowance (LTA): The exemption for LTA is available once in a block of four years.
5. HRA: House Rent Allowance is available if you live in a rented house. The deduction is the least of Rent paid minus 10% of salary, 40% of salary, or Actual HRA received.
6. Medical Insurance: A deduction of up to INR 25,000 is available for medical insurance premium payments. For senior citizens, the limit is INR 50,000.
Note: Please remember that the choice between the old and new tax regimes is an annual choice, as per the CBDT clarification. You can switch between the two regimes each year, depending on which one is more beneficial to you.
For a more detailed understanding, you can visit the Income Tax Department's website(https://www.incometaxindia.gov.in). Please consult with a tax advisor or chartered accountant for personalized advice.
From India, Gurugram
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Gujarat State Tax on Professions.doc
Gujarat Prof Tax Notification 01-04-2013.pdf