I-T Dept Rolls Out Calculator to Decide Between Old and New Tax Regime

Income tax department on Monday released a ‘tax calculator‘ which will help an assessee decide if the new income tax regime announced in the Budget is good for him/her or if the old one is better. 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. Individuals falling under the taxable income bracket are liable to pay a specific portion of their net annual income as tax.

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.

The finance minister also allowed a standard deduction of Rs 50,000 under the new regime which is already available in the old tax regime. The basic exemption limit has been raised to Rs 3 lakh from Rs 2.5 lakh. A Rs 2.5 lakh basic exemption limit is prescribed in the old tax regime.

The move will lead to a saving of Rs 33,800 for those earning up to Rs 7 lakh annually and opting for the new tax regime. Those with income up to Rs 10 lakh would save Rs 23,400 and Rs 49,400 savings would accrue to those earning up to Rs 15 lakh.

Source: Economic Times

Tax Calculator Link – https://incometaxindia.gov.in/Pages/tools/115bac-tax-calculator-finance-bill-2023.aspx

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