<p>Taxpayers across income slabs could end up paying more tax under the new regime, three experts told <span class="italic">DH</span>.</p>.<p>According to calculations across tax slabs by Deloitte India for <span class="italic">DH</span>, if a person avails all basic and permissible exemptions, tax paid in the highest category of Rs 20 lakh under the current regime is 48% less than the new regime. Similarly, in case of income of Rs 15 lakh, tax paid is 55% less in the current regime.</p>.<p>“The fine print indicates that those who want to avail exemptions in respect of HRA, LTA, leave encashment, 80C etc are not eligible to avail this scheme,” said Saraswathi Kasturirangan, partner, Personal Tax, Deloitte India.</p>.<p>“For example, salaried employees earning Rs 10 lakh will not have taxable income under the current regime after all the exemptions. However, if they choose to be covered under the lower tax regime, they would need to forego these exemptions and end up paying taxes,” she said.</p>.<p>According to PwC India’s calculations, which considers a different set of exemptions, income tax paid in the new regime would be 20% more than the current regime.</p>.<p>Those eligible for exemptions and deductions should stay in the old tax regime, according to Ravi Jain, partner, Personal Tax, PwC India. </p>.<p>However, the actual impact of the tax rates, and savings from switching between the regimes would depend on the exemptions availed by the individual taxpayer.</p>.<p>Wealth managers like Jimeet Modi of Samco Securities believe that as result of this, the conversion rate from the current regime to the new regime would be less than 10%.</p>
<p>Taxpayers across income slabs could end up paying more tax under the new regime, three experts told <span class="italic">DH</span>.</p>.<p>According to calculations across tax slabs by Deloitte India for <span class="italic">DH</span>, if a person avails all basic and permissible exemptions, tax paid in the highest category of Rs 20 lakh under the current regime is 48% less than the new regime. Similarly, in case of income of Rs 15 lakh, tax paid is 55% less in the current regime.</p>.<p>“The fine print indicates that those who want to avail exemptions in respect of HRA, LTA, leave encashment, 80C etc are not eligible to avail this scheme,” said Saraswathi Kasturirangan, partner, Personal Tax, Deloitte India.</p>.<p>“For example, salaried employees earning Rs 10 lakh will not have taxable income under the current regime after all the exemptions. However, if they choose to be covered under the lower tax regime, they would need to forego these exemptions and end up paying taxes,” she said.</p>.<p>According to PwC India’s calculations, which considers a different set of exemptions, income tax paid in the new regime would be 20% more than the current regime.</p>.<p>Those eligible for exemptions and deductions should stay in the old tax regime, according to Ravi Jain, partner, Personal Tax, PwC India. </p>.<p>However, the actual impact of the tax rates, and savings from switching between the regimes would depend on the exemptions availed by the individual taxpayer.</p>.<p>Wealth managers like Jimeet Modi of Samco Securities believe that as result of this, the conversion rate from the current regime to the new regime would be less than 10%.</p>
