In hand increase
With the band and revised compensation letters still pending, one thing which skipped my mind totally was the change in tax slabs starting 1st April.
With no tax till around 12.75l to tax saving of around 1.1l in the 30% slab, implications are huge.
Just created a pseudo-fun survey to see how much In hand increase are you expecting in April, including tax benefit and revised compensation, but not variable.
In all honesty, since people will save more from the tax changes, TCS will in all likelihood reduce the increment percentage. This way they will save, just like the QVA cut every quarter.
1 or 2 people will get around 10% hike and the news that will go out will be:
"TCS gives double digit increment this year"
In this new tax structure, what should I choose to get maximum in hand salary monthly-new tax regime or old tax regime? I don't have any such Investments. Just the health insurance.
Upto 12.75 lpa, New tax regime without any question. But in any case where rent or housing loan is not there, I think new tax regime makes more sense.
I don’t think I’m eligible to answer this as I don’t have enough information. Since I’ve joined in Feb mid with new tax regime, TCS didn’t deduct any Income Tax from my salary (except for HIS, Prof. Tax & PF deduction).
But I’m pretty sure, the income tax deduction will start from this month and there won’t be any revised compensation for me as well. Let’s see how tax benefit turns out (not expecting anything significant anyway).
Lookbat the chart here to get an idea https://www.cnbctv18.com/budget/union-budget-2025-income-tax-calculator-new-vs-old-slabs-regime-which-is-better-savings-19550873.htm
Also even if tcs didn't deduct any tax becuase you did not update previous income in tcs tax portal, you are still liable for tax.
Even if I choose the old regime, I'm still under tax slab😮💨 waiting for the hike to resign
