NOTE: New Tax Regime is advantageous, if there is no housing loan

repayment and housing loan interest payment and house rent rebate:
From the following particulars, calculate the total taxable income and the
income tax payable by the employee (below 60 years of age) for the year
2021-22:
Total salary income Rs.14,50,000 (Includes employer
Contribution of NPS
Rs.60,000/-)
Monthly Basic Pay was Rs. 20,000

Total salary includes HRA Rs.1,20,000

Annual Rent paid Rs.1,50,000

Housing Loan Principal Rs. 60,000

Housing Loan Interest Rs.1,40,000
LIC premia Rs. 50,000
NPS contribution Rs. 50,000
Professional Tax Rs. 2,000

Answer: Under Old Regime

Total salary income Rs.14,50,000

Less: Employer contrition of NPS Rs. 60,000
Less: Standard Deduction Rs. 50,000
Professional Tax Rs. 2,000 Rs.13,38,000
Rent Rebate: Rs.1,20,000 Rs.12,18,000
10% excess of rent Rs.126000
HRA received Rs.120000
Loss: HBA Interest Rs.1,40,000 Rs.10,78,000
Deduction under Chapter VI-A
LIC Premia Rs. 50,000
NPS contribution Rs. 50,000
 Housing Loan Principal Rs. 60,000
Under 80C Rs.1,50,000 Rs.9,28,000
Income Tax Rs. 98,100
Cess at 4% Rs. 3,924
Net tax payable Rs.1,02,024

Under New Tax Regime

Total salary income Rs.14,50,000
Less: Employer contrition of NPS Rs. 60,000 Rs.13,90,000
Income Tax @ 5% Rs.12,500
10% Rs.25,000
15% Rs.37,500
20% Rs.50,000
25% Rs.35,000 Rs. 1,60,000
Cess at 4% Rs. 6,400
Net tax payable Rs. 1,66,400

From the following particulars, calculate the total taxable income and the
income tax payable by the employee (below 60 years of age) for the year
2021-22:
Total salary income Rs.6,59,000 (Includes employer
Contribution of NPS
Rs.50,000/-)
LIC premia Rs. 50,000
NPS contribution Rs. 50,000
Professional Tax Rs. 2,000
Answer: Under Old Regime
Total salary income Rs.6,59,000
Less: Employer contrition of NPS Rs. 50,000
Less: Standard Deduction Rs. 50,000
Professional Tax Rs. 2,000 Rs.5,57,000
Deduction under Chapter VI-A
LIC Premia Rs. 50,000
NPS contribution Rs. 50,000 Rs.4,57,000
Income Tax Rs. 10,350
Rebate under Section 87A Rs. 10,350
Net tax payable Rs. 0

Under New Tax Regime

Total salary income Rs.6,59,000
Less: Employer contrition of NPS Rs. 50,000 Rs.6,09,000
Income Tax Rs. 23,400
Education Cess at 4% on income tax Rs. 936
Income tax payable Rs. 24,336