OPTION BETWEEN NEW TAX REGIME & OLD TAX REGIME !
Comrades,
Our Bank has called for option from pensioners if they are willing to opt for New Old Tax regime or the Old one. Members are raising so many queries regarding this and not able to decide which one is better for them. Though the decision has to be taken by the individual member based on his requirements, we give below the suggestions and calculations given by one of our retirees as well as our ARISE member, Mr. Vijayaraghavan R., who is very well known among the members for his guidance in all the matters relating to retirees. We thank him for his kind gesture in extending the same for the option of Tax regime as well :
QUOTE :
👇*Choice between Old and New Tax Regime*
I am getting lot of queries from my friends on the above subject as Employees/Pensioners have to exercise their option for TDS purpose to the employer whether to remain in old regime or to join new regime for FY 2020-21.
To arrive at the decision please follow the simple steps.
*Step 1* – Arrive at Estimated Total annual income for FY 2020-21.( Salary/Pension+ Other Income)
*Step 2* – Arrive at the Total Estimated total deductions-
a. HRA, Housing Loan interest if any, Professional Tax
b. Standard Deductions
c. Bank Interest –Sec 80 TTB for Sr citizens, SB Interest for others –Sec 80 TTA
d. Deductions under Sec 80 C , 80 D already committed or existing
e. Proposed Investment Under Sec 80 C( Max Limit Rs150,000), 80 D ( Self and Spouse-Sr Citizens Max Rs50,000, Others-Max Rs25,000( In both cases where parents are involved it can go up to Rs100000/50,000)
f. Sec 87 A one can exclude from deductions. It is available in both regimes. New retirees can exclude DCRG, Commuted Value and exempted Leave encashment while arriving at estimated income .
*Step 3* -A ready reckoner is developed by me, immediately after budget presentation, for the benefit of tax payers to choose between old and new tax regime. On 4th Feb alone, more than one lakh individuals, from India and abroad, visited the site. Users found that to be easy , flawless and very helpful.
Click on the following link.
https://rviju.github.io
Key in the estimated total income , Deductions and age group. You will get the instant result.
Tax liability can be arrived at for both New as well old regime for the individual income and one can decide instantly which regime suits him better.
The link would be useful to *cross verify IT calculations and arrive at exact Tax Liability for the last FY 2019-20.*
VIJAYARAGHAVAN R.
Note-
This option is only for TDS purpose and one can change this option at the time of filing Income Tax returns. For Salary class/Pensioners this option can be exercised/changed every FY. The option given for TDs purpose at the beginning of FY cannot be changed in the middle.
Members by feeding the FY 2019-20 ,annual income and pension can arrive at their tax liability for the last FY . This they can cross check with their calculations and ensure correctness before filing returns for FY 2019-20.
UNQUOTE
We suggest our members to utilise the calculation chart given in the abovesaid link and opt for the Tax Regime before the stipulated date.
Regards,
Krishnaraj P
Joint General Secretary
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