Tax question: are you richer or poorer?

The answer to the previous question depends on your income level, if you use investments to save taxes and, if so, to what extent. The Budget gives all taxpayers the option to migrate to a new scheme. For income up to Rs 15 lakh, you get a lower tax rate, but this means that you cannot make exemptions, ranging from HRA and for investments in section 80C or medical insurance premium in Section 80D. That clearly implies compensation.

For example, the income between Rs 5 lakh and Rs 7.5 lakh annually will be taxed with 10% in the new regime instead of the 20% that would be paid under the current scheme (which continues as an option). If you have an annual income of Rs 7.5 lakh, this translates into a saving of Rs 25,000 in taxes. Add the 4% cess and you will get a total savings of Rs 26,000. However, this is only possible if you do not claim any deduction or exemption. If you are claiming Rs 1.25 lakh or more as deductions or exemptions, say for the standard deduction (Rs 50,000 flat are allowed) plus other deductions under Section 80C - say for PF, LIC premium or mortgage loan interest - then it is better to continue under the current regime because the gain will be more than offset by the addition to the taxable income.



Let's move forward If you have an annual income of Rs 10 lakh, this translates into a savings of Rs 39,000, assuming you have not claimed any deduction or exemption. But, generally, an individual would make use of a standard deduction and have some investments. So, if you claim Rs 1.87 lakh or more as deductions/exemptions, again, it is better not to change.

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Pensioners and new participants in the labor market, who do not have investments in tax savings schemes or benefits of HRA and LTA, can obtain benefits under the new tax regime.

Sin embargo, otro cambio clave podría tener un impacto adverso mayor y con mayor frecuencia. Esto está en el tratamiento de los ingresos por dividendos. Como destinatario, no pagó ningún impuesto sobre los ingresos por dividendos si era inferior a Rs 10 lakh por año. Los accionistas ricos pagaron impuestos sobre sus ingresos por dividendos superiores a Rs 10 lakh a una tasa del 10% plus el recargo y el cese aplicables. Eso va a cambiar.

All shareholders will have to bear tax on their dividend income. It will be added to their taxable income and taxed at the applicable slab rate. The plus your dividend income and the higher your tax bracket, the larger this impact. At Rs 10 lakh dividend and an annual income of just above Rs 50 lakh, for instance, the extra tax liability would be Rs 3.4 lakh.

El Presupuesto también lo impacta a través de aranceles aduaneros plus altos en toda una gama de productos importados, desde calzado hasta productos electrónicos, muebles, ventiladores de pared, utensilios de cocina, así como algunas bebidas alcohólicas. Todo esto podría ser plus costoso.

En general, dadas las variables involucradas, lo mejor para cada contribuyente es determinar individualmente si el Presupuesto la deja plus pobre o plus rica. Es complicado.

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