Income Tax Department Introduces Calculator To Help Taxpayers Compare New & Old Tax Regimes
Three weeks after India¡¯s Finance Minister Nirmala Sitharaman announced income tax changes especially pertaining to the new tax regime in Union Budget 2023, the income tax department has taken a step to help taxpayers. India¡¯s income tax department has this week launched a 'tax calculator' to help taxpayers decide which income tax regime will be better for them - the old income tax regime or the new income tax regime for the upcoming financial ye...Read More
Three weeks after India¡¯s Finance Minister Nirmala Sitharaman announced income tax changes especially pertaining to the new tax regime in Union Budget 2023, the income tax department has taken a step to help taxpayers.
Calculator To Compare Old & New Tax Regimes
indiatimes
India¡¯s income tax department has this week launched a new tax calculator to help taxpayers decide which income tax regime will be better for them - the old income tax regime or the new income tax regime for the upcoming financial year 2023-24.
Calculator Already Live On Income Tax Website
"Tax Calculator is now live! A dedicated tax calculator to check Old Tax Regime vis-¨¤-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.
The tax calculator is available on the income tax department's portal.
Tax Calculator is now live!
¡ª Income Tax India (@IncomeTaxIndia) February 20, 2023
A dedicated tax calculator to check Old Tax Regime vis-¨¤-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.
Pl check the link below:https://t.co/dy04iY4oj5 pic.twitter.com/JF4VfmXQw4
Taxpayers can fill in the required information such as their gross salary, eligible deductions etc to find out how much total tax liability they have under the old and new regimes, and how much tax saving (if any) they would get under the new regime.
incometaxindia.gov.in
incometaxindia.gov.in
Disclaimer By Income Tax Department
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The income tax website gives a disclaimer that the calculator is only aimed to enable the public to have quick and easy access to basic tax calculations and does not purport to give correct tax calculations in all circumstances. It is advised that for filing of returns, the exact calculation may be made as per the provisions contained in the relevant Acts, Rules etc.
Changes Introduced In Budget 2023
Not only has the government made the new tax regime the ¡®default¡¯ one while keeping the option of the old regime intact, but even the tax slabs and rates in the new regime have been changed.
Also, income up to Rs 7 lakh has been made tax-free after the inclusion of a rebate under Section 87A in Budget 2023.
Budget 2023 has also proposed to allow a standard deduction of Rs 50,000 for salaried individuals under the new regime.
Under the new regime, tax slabs have been proposed to be changed after the announcement of Budget 2023 by FM Sitharaman.
Up to Rs 3 lakh: NIL
Rs 3 lakh- Rs 6 lakh: 5%
Rs 6 lakh-Rs 9 lakh: 10%
Rs 9 lakh-Rs 12 lakh: 15%
Rs 12 lakh- Rs 15 lakh: 20%
Over Rs 15 lakh: 30%
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