Decoding the New Tax Code

Media, Tax Man and General consensus feels tax savings for common man with the new tax code. Is this a fact, we doubt the same:
The new system will help in clarity, simple tax filing procedure easy to calculate tax returns and what we call a transparent system, No doubt about it.

What about tax planning? More importantly who suffers the middle class in the service sector?
The real story, Corporations happy with the slab cuts specially the FMCG pack and other Corp Houses paying 30% tax would now be paying 25%.

The common man story: A simple mathematics but making my tax burden go up? Here we write the story of the common man.

Consider the scenario 2012, 31st march under old and new system. Before that we suggest you to go through the expenditure revenue statement:
Earning s >Cash> Pre tax 7 lacs, Expenditure:Home loan repayment 1 lac( 80C) home to be occupied in 2013, ,interest 50k,(Travel Allowances 9.6k and other benefits non tax 40.4 k) totaling 50k ,15k medical, HRA benefit 1.5 lacs. House hold expenditure 2 lac.

So what makes you believe that the new tax code favors the aam aadmi. It’s an even more expensive shot of wine. Media Tax Man please help us to understand if we are wrong . Also the government is trying to emphasize on investment habit. But this reduces liquidity in the hands of the common man 2.65 lac of other expenditure will cover all the monthly household expense, in new regime if one wants to pay less of tax, invest more with a 5 year lock in. What about emergency requirement.

Note: Pardon us if we have gone wrong anywhere, would incorporate the correction immediately this is what a CA has accepted the fact to be.Note PWC argues that HRA would still be there if thats he case than many would not fall underthe purview of tax itself. There is no clarity. But hRA is defined as Benfit recd by employee from Employer. This is not the only burden you need to pay additionally, tax on your retirement and etc. Adding link for all of you to take a different view on the Hype created by media.Think about it and discuss. FOr details on the tax code hit the below link
http://lite.epaper.timesofindia.com/getpage.aspx?pageid=1&pagesize=&edid=&edlabel=ETBG&mydateHid=13-08-2009&pubname=&edname=&publabel=ET
This is only for service class wait for the SME's and COrporations who stand to lose on the new system. Suggestions/Comments please.