Dr Rajni's Book on Financial Literacy (VAC) First Edition Page 13.13 (Q.

1)
Calculation of Income and Tax Liability (Old Tax Rates Regime) Calculation of Income and Tax Liability (New Tax Rates Regime) Old Tax Rates Regime
Non Sr Citizen (FY 2021-22; AY 2022-23) Any Individual (FY 2021-22; AY 2022-23) Upto 2,50,000 (3L / 5L) Nil
Gross Salary 750000 Gross Salary 750000 2,50,001 to 5,00,000 5%
Less Ded u/s 10 (HRA) -10000 Less Ded u/s 10 (HRA, etc) 0 5,00,001 to 10,00,000 20%
Less Ded u/s 16 Std Ded -50000 690000 Less Ded u/s 16 Std Deduction 0 750000 Above 10,00,000 30%
0 0 New Tax Rates Regime
0 Upto 2,50,000 Nil
Gross Total Income 690000 Gross Total Income 750000 2,50,001 to 5,00,000 5%
Less Deductions (80C to 80U) Less Deduction 5,00,001 to 7,50,000 10%
Section 80C 0 7,50,001 to 10,00,000 15%
Provident Fund 100000 0 10,00,001 to 12,50,000 20%
Tuition Fees 50000 -150000 Section 80CCD(2) 12,50,001 to 15,00,000 25%
80CCD (1B): New pension Scheme -50000 0 0 Above 15,00,000 30%
Total income 490000 Total income 750000 No Change
Income Tax 12000 Income Tax 37500 Rebate u/s 87A (if TI upto 5 Lakhs)
Less Rebate u/s 87A (TI upto Rs 500,000) Max 12500 12000 Less Rebate u/s 87A (TI upto Rs 500,000) Max 12500 0 No Surcharge (if TI upto 50 Lakhs)
0 37500 Health & Education Cess @ 4%
HEC @ 4% 0 HEC @ 4% 1500
Non-Senior Citizen Tax Liability 0 Tax Liability 39000
Advised to opt Old Tax Rates Regime 39000 0
 Dr Rajni's Book on Financial Literacy (VAC) First Edition Page 13.14 (Q. 2)
Calculation of Income and Tax Liability (Old Tax Rates Regime) Calculation of Income and Tax Liability (New Tax Rates Regime) Old Tax Rates Regime
Non Sr Citizen (FY 2021-22; AY 2022-23) Any Individual (FY 2021-22; AY 2022-23) Upto 2,50,000 Nil
Gross Salary 1000000 Gross Salary 1000000 2,50,001 to 5,00,000 5%
Less Ded u/s 10 (HRA, etc) 0 5,00,001 to 10,00,000 20%
Less Ded u/s 16 Std Ded -50000 950000 Less Ded u/s 16 Std Deduction 0 1000000 Above 10,00,000 30%
House Property-Self occupied Residential House House Property-Self occupied Residential House 0 New Tax Rates Regime
Interest on Housing Loan -150000 Upto 2,50,000 Nil
Gross Total Income 800000 Gross Total Income 1000000 2,50,001 to 5,00,000 5%
Less Deductions (80C to 80U) Less Deductions 5,00,001 to 7,50,000 10%
Section 80C 0 7,50,001 to 10,00,000 15%
Public Provident Fund 100000 0 10,00,001 to 12,50,000 20%
Repayment of Housing Loan 50000 -150000 80CCD (2): Employer's NPS 12,50,001 to 15,00,000 25%
80CCD (1B): New pension Scheme -50000 0 0 Above 15,00,000 30%
80D: Medical Insurance Prem -25000 No Change
Total income 575000 Total income 1000000 Rebate u/s 87A (if TI upto 5 Lakhs)
Income Tax 27500 Income Tax 75000 No Surcharge (if TI upto 50 Lakhs)
Less Rebate u/s 87A (TI upto Rs 500,000) Max 12500 0 Less Rebate u/s 87A (TI upto Rs 500,000) Max 12500 0 Health & Education Cess @ 4%
27500 75000
HEC @ 4% 1100 HEC @ 4% 3000
Non-Senior Citizen Tax Liability 28600 Tax Liability 78000
Advised to opt Old Tax Rates Regime 49400 0
 Dr Rajni's Book on Financial Literacy (VAC) First Edition Page 13.14 (Q. 3)
Calculation of Income and Tax Liability (Old Tax Rates Regime) Calculation of Income and Tax Liability (New Tax Rates Regime) Old Tax Rates Regime
Non Sr Citizen (FY 2021-22; AY 2022-23) Any Individual (FY 2021-22; AY 2022-23) Upto 2,50,000 Nil
Gross Salary 1500000 Gross Salary 1500000 2,50,001 to 5,00,000 5%
Less Ded u/s 10 (HRA, etc) 0 5,00,001 to 10,00,000 20%
Less Ded u/s 16 Std Ded -50000 1450000 Less Ded u/s 16 Std Deduction 0 1500000 Above 10,00,000 30%
House Property-Self occupied Residential House House Property-Self occupied Residential House 0 New Tax Rates Regime
Interest on Housing Loan -200000 Upto 2,50,000 Nil
Gross Total Income 1250000 Gross Total Income 1500000 2,50,001 to 5,00,000 5%
Less Deductions (80C to 80U) Less Deductions 5,00,001 to 7,50,000 10%
Section 80C 0 7,50,001 to 10,00,000 15%
Public Provident Fund -50000 0 10,00,001 to 12,50,000 20%
Life Insurance Prem -30000 12,50,001 to 15,00,000 25%
Tuition Fees -70000 -150000 80CCD (2): Employer's NPS Above 15,00,000 30%
80CCD (1B): New pension Scheme -50000 0 0 No Change
80D: Medical Insurance Prem -25000 Rebate u/s 87A (if TI upto 5 Lakhs)
Total income 1025000 Total income 1500000 No Surcharge (if TI upto 50 Lakhs)
Income Tax 120000 Income Tax 187500 Health & Education Cess @ 4%
Less Rebate u/s 87A (TI upto Rs 500,000) Max 12500 0 Less Rebate u/s 87A (TI upto Rs 500,000) Max 12500 0
120000 187500
HEC @ 4% 4800 HEC @ 4% 7500
Non-Senior Citizen Tax Liability 124800 Tax Liability 195000
Advised to opt Old Tax Rates Regime 70200 0
 Dr Rajni's Book on Financial Literacy (VAC) First Edition Page 13.15 (Q. 4)
Calculation of Income and Tax Liability (Old Tax Rates Regime) Calculation of Income and Tax Liability (New Tax Rates Regime) Old Tax Rates Regime
Non Sr Citizen (FY 2021-22; AY 2022-23) Any Individual (FY 2021-22; AY 2022-23) Upto 2,50,000 Nil
Basic Salary Rs. 100000 * 12 1200000 Basic Salary Rs. 100000 * 12 1200000 2,50,001 to 5,00,000 5%
House Rent Allowance Rs. 45000 * 12 540000 House Rent Allowance Rs. 45000 * 12 540000 5,00,001 to 10,00,000 20%
Special Allowance Rs. 20000 * 12 240000 Special Allowance Rs. 20000 * 12 240000 Above 10,00,000 30%
Leave Travel Allowance 20000 Leave Travel Allowance 20000 New Tax Rates Regime
2000000 2000000 Upto 2,50,000 Nil
Less Ded u/s 10 - HRA Less Ded u/s 10 (HRA, etc) 2,50,001 to 5,00,000 5%
Less Ded u/s 10 - LTA Less Ded u/s 10 - LTA 5,00,001 to 7,50,000 10%
Less Ded u/s 16 Std Ded -50000 1950000 Less Ded u/s 16 Std Deduction 2000000 7,50,001 to 10,00,000 15%
10,00,001 to 12,50,000 20%
Gross Total Income 1950000 Gross Total Income 2000000 12,50,001 to 15,00,000 25%
Less Deductions (80C to 80U) Less Deductions Above 15,00,000 30%
Section 80C 80CCD (2): Employer's NPS 0 No Change
80D: 0 Rebate u/s 87A (if TI upto 5 Lakhs)
Total income 1950000 Total income 2000000 No Surcharge (if TI upto 50 Lakhs)
Income Tax 397500 Income Tax 337500 Health & Education Cess @ 4%
Less Rebate u/s 87A (TI upto Rs 500,000) Max 12500 0 Less Rebate u/s 87A (TI upto Rs 500,000) Max 12500 0
397500 337500
HEC @ 4% 15900 HEC @ 4% 13500
Non-Senior Citizen Tax Liability 413400 Tax Liability 351000
0 Opt for New Tax rates Regime 62400
 Dr Rajni's Book on Financial Literacy (VAC) First Edition Page 13.16 (Q. 5)
Calculation of Income and Tax Liability (Old Tax Rates Regime) Calculation of Income and Tax Liability (New Tax Rates Regime) Old Tax Rates Regime
Non Sr Citizen (FY 2021-22; AY 2022-23) Any Individual (FY 2021-22; AY 2022-23) Upto 2,50,000 Nil
Basic Salary Rs. 90000 * 12 1080000 Basic Salary Rs. 100000 * 12 1080000 2,50,001 to 5,00,000 5%
House Rent Allowance Rs. 45000 * 12 540000 House Rent Allowance Rs. 45000 * 12 540000 5,00,001 to 10,00,000 20%
Special Allowance Rs. 20000 * 12 240000 Special Allowance Rs. 20000 * 12 240000 Above 10,00,000 30%
Leave Travel Allowance 18000 Leave Travel Allowance 18000 New Tax Rates Regime
1878000 1878000 Upto 2,50,000 Nil
Less Ded u/s 10 - HRA -192000 Less Ded u/s 10 (HRA, etc) 2,50,001 to 5,00,000 5%
Less Ded u/s 10 - LTA Less Ded u/s 10 - LTA 5,00,001 to 7,50,000 10%
Less Ded u/s 16 Std Ded -50000 1636000 Less Ded u/s 16 Std Deduction 1878000 7,50,001 to 10,00,000 15%
Other Sources 10,00,001 to 12,50,000 20%
Gross Total Income 1636000 Gross Total Income 1878000 12,50,001 to 15,00,000 25%
Less Deductions (80C to 80U) Less Deductions (80C to 80U) Above 15,00,000 30%
Section 80C 80CCD (2): Employer's NPS 0 No Change
Section 80D Rebate u/s 87A (if TI upto 5 Lakhs)
80E No Surcharge (if TI upto 50 Lakhs)
Section 80TTA Health & Education Cess @ 4%
Total income 1636000 Total income 1878000 Old Regime
Income Tax 303300 Income Tax 300900 Calculation of HRA u/s 10(13A)
Less Rebate u/s 87A (TI upto Rs 500,000) Max 12500 0 Less Rebate u/s 87A (TI upto Rs 500,000) Max 12500 0 HRA Receuved (45000*12) 540000

303300 300900 House Rent Paid (25000*12) 300000

HEC @ 4% 12132 HEC @ 4% 12036 50 % of Basic (DMCB) 540000

0 Opt for New Tax rates Regime 2496 Least Amount is exempted 192000