The Income Tax Department on Monday released a ‘tax calculator’ to help assessees decide whether the new income tax system announced in the budget is good for them or the old one is better.
The tax calculator is live on Income tax Department Portal
“TAX CALCULATOR NOW LIVE! A dedicated tax calculator to check old tax regime against new tax regime for Individual/HUF/AOP/BOI/Artificial Juridical Person (AJP) as per section 115BAC now accessed on IT Can go. Department’s website,” according to a tweet from the tax department.
Income Tax Calculator is an online tool that helps in estimating taxes based on a person’s income. Union Budget Proclamation of 2023-24. Individuals falling within the taxable income bracket are liable to pay a certain portion of their net annual income as tax.
Announcing the Budget for the financial year commencing 1st April 2023, the Finance Minister Nirmala Sitharaman “We are also making the new income tax system a default tax system. However, citizens will continue to have the option to benefit from the old tax system,” he said.
According to the announcement, taxpayers opting for the new system will get exemptions not exceeding their income. ₹7 lakh per annum.
The finance minister also allowed standard deduction. ₹50,000 under the new regime which is already available under the old tax regime. The basic exemption limit has been increased. ₹3 lakh from ₹2.5 lakh a ₹In the old tax system, the basic exemption limit was fixed at 2.5 lakh.
This measure will save. ₹33,800 for those earning up to ₹7 lakhs annually and opting for a new tax system. Whose income is up to ₹10 lakhs will be saved. ₹23,400 and ₹49,400 in savings will accrue to those earning up to ₹15 lakhs