Nearly a fortnight after Finance Minister Nirmala Sitharaman announced several changes pertaining to income tax slabs and the new income tax regime, the income tax department has made a ‘tax calculator’ live. In case an individual is confused between the old and new income tax regime, they can use the calculator to decide which is better for them.
“Tax Calculator is now live! A dedicated tax calculator to check Old Tax Regime vis-à-vis New Tax Regime for Individual/HUF/AOP/BOI/Artificial Juridical Person (AJP) as per Section 115BAC can now be accessed on the IT Dept website,” the tax department said in a tweet on February 20.
The tax calculator is live on the income tax department’s portal.
An Income-tax calculator is an online tool that helps to evaluate taxes based on a person’s income based on Union Budget 2023-24 announcement. Taxpayers or salaried individuals falling under the taxable income bracket are liable to pay a specific portion of their net annual income as tax.
Here’s how to calculate old versus new tax regime tax liability:
Visit https://incometaxindia.gov.in/Pages/tools/115bac-tax-calculator-finance-bill-2023.aspx..
You will be redirected to ‘TAX CALCULATOR – OLD REGIME VIS-À-VIS NEW REGIME’. In the form, the taxpayer will need to fill in details like the Assessment Year, Tax Payer Category, Residential Status, Income other than Salary and Special Rate Income, Interest on Self Occupied House Property, Deductions allowed under both regimes i.e. 80CCH(2), 80CCD(2), 80JJAA, family pension deduction under section 57(iia), Deductions/exemptions (other than mentioned above) not eligible in new tax regime.
You will also need to enter the following details for both Old Tax Regime Vs New Tax Regime Tax:
Income From Self-Occupied House Property
Income other than Salary and Special Rate Income
Gross Total Income
Less: Eligible Deductions
Total Income
Income Tax after relief u/s 87A
Surcharge
Secondary and higher education cess
Total Tax Liability
Now you can finally check Tax Savings in New Regime
Tax related announcements in Budget 2023
FM Sitharaman had on February 1 announced, “We are also making the new income tax regime as the default tax regime. However, citizens will continue to have the option to avail the benefit of the old tax regime.” As per the announcement, taxpayers opting for the new regime will get a rebate if their income does not exceed Rs 7 lakh per annum.
In her Budget speech, she also allowed a standard deduction of Rs 50,000 under the new regime which is already available in the old tax regime. Additionally, the basic exemption limit has also been increased to Rs 3 lakh from Rs 2.5 lakh.
