The income tax department produced a “tax calculator” on Monday to assist taxpayers in determining whether the new income tax regime introduced in the Budget is best for them or if the previous one is preferable.
The income tax department’s portal has a live version of the tax calculator.
As per the tax department, “Tax Calculator is now live! A dedicated tax calculator to check Old Tax Regime vs 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,”
An online application called an income-tax calculator aids in calculating taxes depending on an individual’s income in accordance with the Union Budget 2023–24 announcement. Those in the taxable income bracket are required to pay a certain percentage of their net annual income in taxes.
Nirmala Sitharaman, the minister of finance, said this when releasing the budget for the fiscal year that starts on April 1, 2023. “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.”
According to the notification, taxpayers who choose the new system would receive a rebate if their annual income is less than Rs 7 lakh.
Moreover, the finance minister permitted the previous tax system’s existing standard deduction of Rs. 50,000 under the new regime. The basic exemption threshold was increased from Rs 2.5 lakh to Rs 3 lakh. The former tax regime had a baseline exemption cap of Rs 2.5 lakh.
Read Also: What is the Reality of New Income Tax Regime for Taxpayers?
For individuals who choose the new tax regime and earn up to Rs 7 lakh yearly, the decision will result in savings of Rs 33,800. Up to Rs 10 lakh in income would result in savings of Rs 23,400, while up to Rs 15 lakh in income would result in savings of Rs 49,400.
Click to Open Income Tax Calculator: https://incometaxindia.gov.in/Pages/tools/115bac-tax-calculator-finance-bill-2023.aspx
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