Frequently Asked Questions

Old Tax Regime and New Tax Regime

Q1. What is “Old Tax Regime”?
A. Income Tax slabs applied during the Financial Year (FY) 2019-20 is called “Old Tax Regime”

Q2. What is “New Tax Regime”?

A. The New Tax slabs proposed by Finance Ministry in the Union Budget for FY 2020-21 is called “New
Tax Regime”
Q3. What are the tax slabs under “Old Tax Regime” and “New Tax Regime”?
A. The tax slabs applicable for the Financial Year 2021-22, are provided in the table below.

Income Tax Rates for FY 2021-22

Old Tax Regime New Tax Regime
Income Tax Slab (in INR)
Tax Rate Surcharge Cess Tax Rate Surcharge Cess
Up to 250,000 0% 0% 0% 0% 0% 0%
250,001 – 500,000 5% 0% 4% 5% 0% 4%
500,001 – 750,000 20% 0% 4% 10% 0% 4%
750,001 – 1,000,000 20% 0% 4% 15% 0% 4%
1,000,001 – 1,250,000 30% 0% 4% 20% 0% 4%
1,250,001 – 1,500,000 30% 0% 4% 25% 0% 4%
1,500,001 – 5,000,000 30% 0% 4% 30% 0% 4%
5,000,001 – 10,000,000 30% 10% 4% 30% 10% 4%
10,000,001 – 20,000,000 30% 15% 4% 30% 15% 4%
20,000,001 – 50,000,000 30% 25% 4% 30% 25% 4%
50,000,001 and above 30% 37% 4% 30% 37% 4%

Q4. What Flexible Benefit Plan (FBP) I can claim tax exemption under “Old Tax Regime” and “New Tax Regime”?
A. Tax exemption can be claimed as per table below, by submitting necessary expense claims as per the FBP
process

FBP reimbursements Old Tax Regime New Tax Regime

Leave Travel Allowance Yes No
Food Coupons / Meal Vouchers Yes No
Telephone Reimbursement Yes Yes
Fuel Reimbursement Yes Yes
Driver Salary Yes Yes

In the event you opt for “New Tax Regime” you cannot claim tax exemption on LTA and Sodexo

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 Frequently Asked Questions

Q5. What Income Tax Exemptions I can claim under “Old Tax regime” and “New Tax Regime”?
A. Income Tax Exemption under Chapter VI-A and Section 80C is as per table below

Chapter VI-A Old Tax Regime New Tax Regime

No, Incl. top-up and
Medical Insurance Premium (Sec 80D) Yes monthly parental
coverage
Deduction towards Handicapped Dependents (Sec 80DD) Yes No
Deduction towards treatment of Specified Diseases (Sec 80DDB) Yes No
Interest Paid on Higher Education Loan (Sec 80E) Yes No
Deduction for Permanent Disability (Sec 80U) Yes No
Employer's contribution toward NPS (up to 10%) (u/s 80CCD) Yes Yes
Interest on deposits in Saving bank accounts (80TTA) Yes No
Exemption on Loan for Purchase of Electric Vehicles Yes No

Deductions U/s 80C Old Tax Regime New Tax Regime

Employees Provident Fund Yes No
Voluntary Provident Fund Yes No
Public Provident Fund Yes No
Children's Education - Tuition Fees Yes No
National Savings Certificate (NSC) Yes No
Life Insurance Premium Yes No
Housing Loan Principal Repayment Yes No
Sukanya Samriddhi Scheme Yes No
Accrued NSC Interest Yes No
Mutual Funds / ULIP Yes No
Deduction under Life Insurance Pension Scheme Yes No
Employees contribution towards NPS Yes No
Senior Citizens Savings Scheme Yes No
Tax Saver Fixed Deposits / Term Deposits / Senior Citizen Saving
Yes No
Scheme
Investment in Infrastructure /tax saving bonds Yes No

Q6. What are the various exemptions applicable Under section 10 and 17 of Income Tax Act under “Old Tax
Regime” and “New Tax Regime”?
A. You can claim Income Tax Exemption Under section 10 and 17 as per table below

Exemptions Under section 10 and 17 Old Tax Regime New Tax Regime
House Rent Allowance Yes No
Gratuity Yes Yes
Leave Encashment Yes Yes

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Q7. What is the applicability of Interest paid on Home Loan for self-occupied and let-out property under “Old Tax
Regime” and “New Tax Regime”?
A. Income Tax applicability on Interest paid on Home loan for self-occupied and let-out property is as per table
below

Income / Loss from Housing Property Old Tax Regime New Tax Regime
Interest on Housing Loan - Self Occupied Yes No
Loss from House Property Income - Let Out Yes No
Interest on Housing Loan - Additional Exemption U/s 80EE Yes No

Q8. What is applicability of Standard Deduction and Professional Tax paid under “Old Tax Regime” and “New Tax
Regime”?
A. Applicability of Standard Deduction and Professional Tax is as per table below

Deduction Type Old Tax Regime New Tax Regime

Standard Deduction of INR 50,000 Yes No
Professional Tax deducted on Salary Income Yes No

Q9. Why should I opt for “New Tax Regime”?

A. “New Tax Regime” allows you to avail a concessional tax rate provided you opt out of certain exemptions
and deductions that were applicable under “Old Tax Regime”

Q10. When is the “New Tax Regime” applicable?

A. “New Tax Regime” is applicable from Assessment Year 2021-22 (i.e. Financial Year 2020-21 and 2021-22).

Q11. Can I opt from “New Tax Regime” to “Old Tax Regime” during the FY?
A. No, once you select “New Tax Regime”, you cannot switch to “Old Tax Regime” until the end of the
Financial Year.

Q12. Can I opt from “Old Tax Regime” to “New Tax Regime” during the FY?
A. You can select “New Tax Regime” any month during the FY, however once you select “New Tax
Regime” you cannot revert to “Old Tax Regime”

Q13. I paid taxes under “New Tax Regime” in my previous Organization and would like to switch to “Old Tax Regime”
with Open Text. Is it possible?
A. As per the guidelines provided by Income Tax Department, an employee once selects “New Tax
Regime” he/she will have to continue with “New Tax Regime” for the Financial Year. However, if you
wish to switch to “Old Tax Regime” you may do so while filing your return of Income with Income Tax
Department. However, you can choose the tax regime only at the beginning of the Financial year.

Q14. I paid taxes under “Old Tax Regime” in my previous Organization and have opted for “New Tax Regime” with
Open Text. While declaring Previous Employer Income, which amount should I declare? Income before OR after
exemptions?
A. Please declare,
• Income after Gratuity & Leave Encashment exemption
• Income Tax deducted by previous employer
Professional Tax & Provident Fund contributed in previous employment need NOT be declared as the same
do not qualify for tax exemption under the “New Tax Regime”.

Q15. If I opt for “New Tax Regime”, can I declare income from other sources?
A. yes, You can declare income from other sources (like interest earned on saving bank account, interest on fixed
deposits etc.) and pay taxes through your salary.

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Q16. In case I change my declaration from “Old Tax Regime” to “New Tax Regime” in the month of October 2021.
Will this change be effective from October 2021 onwards?
A. No, irrespective of the month in which you opt for “New Tax Regime”, the change will be effective from
the beginning of the Financial Year i.e. April.

Q17. I have joined OpenText during the current Financial Year, should I continue the tax regime that I was taxed
under at my previous organization or can I change it at OpenText?
A. You should continue with “New Tax Regime” if you were paying taxes under “New Tax regime” at your
previous employer.

Q18. Will I get an opportunity to change my tax regime during submission of my investment proofs?
A. If you have opted for “New Tax Regime”, then you cannot revert to “Old Tax Regime” during the
Financial Year. However, you can revert to “Old Tax Regime” at return filing stage.

Q19. Will I get an option to change my tax regime at return filing stage to what was selected with OpenText?
A. Yes, you can change your Tax Regime at return filing stage.

Q20. How do I know which tax regime is best for my compensation and investment proofs?
A. You can use the dynamic tax calculator, that is made available on HRBerry portal, to compute and
compare the tax liability under both tax regimes.

Q21. I would want to opt for “New Tax Regime”, where should I update this information?
A. You can login into HRberry portal and follow the path to choose New Tax regime.
For Opentext entities: My Pay -> Investment Declaration (ITDF) -> choose the Tax regime -> Submit
For GXS entity: GXS Pay & Benefits > ITDF > Tax regime

Q22. In case I leave the Company before HRBerry portal gets enabled again for changing my Tax Regime, on what
basis will my taxes be computed?
A. Your taxes will be computed based on the last Tax Regime that you have opted for on HRBerry portal.

Q23. What if I fail to declare my investment declaration in HRBerry portal, which Tax Regime will be applied for
calculating my taxes?
A. “Old Tax Regime” will be considered and taxes as applicable will be deducted if you do not submit
your investment declaration.

Q24. What if I did not declare any investment in HRBerry Portal but have submitted actual proofs in January or at
the time of settlement?
A. “Old Tax Regime” will be continued in case you have not submitted your investment declaration, hence
investment proofs submitted will be considered as per “Old Tax Regime”.

Q25. What if I have declared my investment in HRBerry portal but missed to submit investment proofs in the year
end?
A. Your taxes will be computed based on the Tax Regime you have opted for while submitting your
investment declaration.

Q26. Do I need to be aware of any other changes as part of Budget release for FY21-22?
A. Effective this Financial Year, the employer contributions in excess of INR 750,000 per annum, towards
Provident Fund and National Pension Scheme, will be subject to perquisite tax in the hands of
employee.

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