Most People Are Using New Tax Regime

When the Finance Minister of India announced the new tax regime this year where you don't have to pay any tax upto 12 lakhs then a lot of people have started using the new tax regime. When I was calculating the tax between the new and old tax regime then, the new regime is saving me around 20% more tax than the old regime.

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For example, even after giving all the benefits for the old tax regime, the new tax regime seems to be better for most of the time. And that's why most people have started using the new tax regime. From the last few years, my collegues used to use the old tax regime but I used to use the new tax regime. For the collegues they used to take all the efforts to save tax in the old. They have also used to pay rent to their family so that they can save more taxes.

But now after the change the new tax regime. My collegues don't have to do much thing, they can use the next tax regime so that their tax can be saved. Not only for people who have just 12 Lakhs as their income but people who have more money can save their tax too.

For the new rac regime you don't have to save much, so that your in hand money is more and that's why the savings will also increase if you save what is saved. So that's why whatever I will be saving from this month, I will be investing that amount. And thus for me nothing will change as in hand income, but the savings will increase for me. So that's what I have suggested for all my collegues, try to invest whatever you save from the tax.

Posted Using INLEO