New Income Tax Regime, Income Tax Calculator: To help individuals calculate their taxes and choose a tax regime that they are comfortable with, the Income Tax department has made a “tax calculator” available. The new income tax structure was put out in the Budget 2023 by Nirmala Sitharaman, the finance minister.
According to a tweet from the tax division, a special tax calculator is accessible on the income tax website to compare the old and new tax regimes for individuals and for everyone in accordance with Section 115 BAC.
What is an Online Tax Calculator?
Using an online application called an income-tax calculator, taxes may be estimated based on an individual’s income. Those in the taxable income bracket must pay taxes that are equal to a specific percentage of their net annual income.
Benefits of an Income Tax Calculator
- Making a financial budget may be done by figuring out your income tax.
- Knowing how much tax one will have to pay allows one to schedule their expenditures and choose wisely when to save.
- By doing this, one may avoid falling into debt and overspending.
- While calculating income tax, one can deduct certain expenses from their taxable income.
Under the existing tax regime, the finance minister allowed a Rs 50,000 baseline deduction, which was also available under the previous one. Those who adopt the new tax structure and earn up to Rs 7 lakh per year would save Rs 33,800 as a result of their decision. Savings of Rs 23,400 are made for incomes up to Rs 10 lakh, while savings of Rs 49,400 are made for incomes up to Rs 15 lakh.
Read Also: Easy to Calculate Your Income Tax Liability Under New Regime
How Can I Compute My Income Tax Using the IT Department’s Tax Calculator?
After logging into the portal, the following details will be required:
- Type of Taxpayer
- Male, Female, Senior, or Super Senior Citizen
- Status as a residence
- Income not from Salaries and Special Income
- Interest in Property with Self-Occupied property
- Deductions allowed under both regimes, along with section 57’s family pension deduction and sections 80CCH(2), 80CCD(2), and 80JJAA (iia)
As soon as you enter the previously given data, the site will show the figure under both the old and new tax regimes.
