Income Tax: New or Old Regime

The new tax regime is meant to encourage consumption / consumerism driven economic growth.
Looks like Indian Finance Minister has already decided that we don't have enough capability to fuel growth lead by improvement in productivities.

On the other hand, I feel old tax regime is better because it forces you to save for the rainy day and old age. Most human beings are ridiculously optimistic when it comes to planning for finances - USofA citizens being a prime case.
 
Specially for this running financial year, and the next assessment year (For which we would be filing ITR in 2024 basically), New tax regime would be good for all those mid-range salaried folks.

Old regime works better if you, after some deductions, can fall back to almost 0 tax bracket, hence more of the Freshers and Early Career folks.
 
puns said:
So my CA prepared and shared with me the challan on 29th last month, I went ahead and paid it at the bank on 4th July and I got the confirmation.
Now I have got a letter Intimation u/s 143(1) of a demand for a small amount for 'Interest and Fee Payable'.
My CA says this happens when challan is made in a different month and payment is done different month and they have charged me interest for this. Also he said this is unusual for individual and mostly in corporate returns.

Anyone has thoughts on this. I paid the challan well within the time period written on it of validity (maybe 14 days
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Looks accurate to me. Interest and penalty keeps accruing even after the demand is generated if it is not paid immediately. Of course the quantum of increase will be dependent on the tax that is pending. I had faced this issue a few years back and from then I pay online and on the same day to avoid this. If the demand is less than INR 100, then it can be ignored. They would not have asked you to pay it.

The extra amount is likely the interest and penalty accrued for the period from 30th June to 4th Aug.
 
This time around, I didn't file returns at 11th hour like usual. I filed them in April or May. And they took 2.5 months to process. I was so early that income tax site didn't even have web forms on. This is the longest period I had to wait. From next year, I'll go back to filing on the last day. I think filing early increases your chances of getting assessed (officers have time to kill). I haven't got assessed so far but don't want to play with the odds.
 
Elessar said:
Looks accurate to me. Interest and penalty keeps accruing even after the demand is generated if it is not paid immediately. Of course the quantum of increase will be dependent on the tax that is pending. I had faced this issue a few years back and from then I pay online and on the same day to avoid this. If the demand is less than INR 100, then it can be ignored. They would not have asked you to pay it.

The extra amount is likely the interest and penalty accrued for the period from 30th June to 4th Aug.
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Yes. thanks for explaining this. Just wanted to confirm if my CA is giving an excuse or not. He told me if he generates and I pay in the same month, penalty shouldnt happen.
From next time, will pay immediately through NEFT/RTGS rather than cheque.
 
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