What would be tax payable of Indian resident who has total annual salary of 35 lakhs?

What would be tax payable of Indian resident who has total annual salary of 35 lakhs? Please mention tax as per old and new regime. For deductions take 1.5 lakhs of 80C and for HRA consider monthly rent of Rs 15,000 for Ahmedabad.

Any help on this plz?

 

Replies (3)
Quick Summary
This discussion explores the income tax payable by an Indian resident earning an annual salary of 35 lakhs. It provides a detailed calculation for both the old and new tax regimes, considering deductions under Section 80C and HRA benefits based on rent in Ahmedabad. The analysis concludes that the new tax regime results in a slightly lower tax liability by approximately ₹15,600.

Tax payable under old regime as under:
basic salary-35,00,000
+hra-1,80,000(15,000*12)(no deduction allowed as per rent is not more than 10% of salary, so, hra is full taxable)
=36,80,000
-standard deduction 50,000
gross total income=36,30,000
-deduction u/s80c=1,50,000
total taxable income=34,80,000
basic tax= 8,56,500(12,500+1,00,000+7,44,000)
health& education cess=34260
tax payable=890760

tax payable under new regime
salary-35,00,000
+hra-180,000
gross total income=36,80,000
total taxable income=36,80,000
basic tax=841500(12,500+25000+37500+50,000+62500+654000)
+health&education cess-33660
tax payable =875160
so, as per comparison
tax payable old regime:890760
tax payable new regime:875160
so, it is advisable to select new regime for tax payment for reducing extra tax payment of 15600 in compare to old regime
Originally posted by : Akshay Poriya
 comparison: tax payable old regime:890760tax payable new regime:875160so, it is advisable to select new regime for tax payment for reducing extra tax payment of 15600 in compare to old regime

Thanks Akshay for your detailed analysis.  Is there a way in old / new regime to reduce the tax?  Paying tax of nearly 9 lakhs on salary of 35 lakhs is insane!!

Anyone can help me to reduce the tax of Rs 9 lakhs?

 

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