New income tax regime or old tax regime: Income Tax dept launches new tax calculator; check here
The Income Tax department has unveiled 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 in the financial year 2023-24. The tax calculator is available on the income tax department's portal."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.
Tax Calculator is now live!A dedicated tax calculator to check Old Tax Regime vis-à-vis New Tax Regime for Indivi… https://t.co/dBxAUbXk1j
— Income Tax India (@IncomeTaxIndia) 1676899112000Do remember that the above calculator is just intended to provide the public with quick and easy access to basic tax calculations; it does not claim to provide correct tax calculations in all cases.
"The above calculator is only to enable the public to have quick and easy access to basic tax calculation and does not purport to give correct tax calculation 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."
Budget 2023 proposals
To make the new income tax regime attractive, Budget 2023 has proposed a host of changes. It has hiked the basic exemption limit to Rs 3 lakh from Rs 2.5 lakh under the new revised tax regime. The rebate under section 87A of the Income-tax Act, 1961 has been increased to Rs 7 lakh from Rs 5 lakh under the new tax regime. Budget 2023 has also extended a standard deduction of Rs 50,000 under the new regime which is available in the old tax regime. Individuals with taxable income of up to Rs 7.5 lakh will not have to pay any taxes if they choose the new tax regime in FY 2023-24.
What are the income tax slab and tax rates under the revised new tax regime?
Effective from April 1, 2023, the income tax slabs under the new income tax regime will now be as follows:
Income tax slabs (Rs)Income tax rate (%)From 0 to 3,00,0000From 3,00,001 to 6,00,0005From 6,00,001 to 9,00,00010From 9,00,001 to 12,00,00015From 12,00,001 to 15,00,00020From 15,00,001 and above30
Budget proposals to leave more money in the hands of people: FM
Budget proposals under the new income tax regime will leave more money in the hands of the people and it is up to the taxpayer to decide where to put his money, Finance Minister Nirmala Sitharaman said after Budget 2023. "...the way we allowed for standard deduction and also the rates which have been fixed, tax rates which have been fixed for different slabs, it has actually left more money in the hands of the people, the taxpayer, the household," she said while talking to reporters after the customary post-Budget address to the central board of the Reserve Bank of India on February 11, 2023.
This measure of the government was purely to reduce the tax burden on the middle class and is aligned to the promise which was made a couple of years ago of simplifying direct taxation, she further added.
Can a taxpayer switch from a new tax regime to an old tax regime or vise-a-versa?
Yes, an individual can choose between the new and old tax regimes in each fiscal year. However, the ability to convert between the new and old tax regimes is only available to those with salaried income and no company income.
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This story originally appeared on: India Times - Author:Faqs of Insurances
