Last Update: February 22, 2023, 08:38 IST
The Income Tax Department on Monday released a ‘tax calculator’ that will help assessees decide whether the new income tax regime announced in the Budget is good for them or the old one is better.
The tax calculator is live on the Income Tax Department portal.
“Tax Calculator is now live! Dedicated tax calculator as per section 115BAC for Individual/HUF/AOP/BOI/Artificial Juridical Person (AJP) to check new tax regime vis-à-vis old tax regime now on IT Dept’s website Can be seen at.Tweet of Tax Department
Income Tax Calculator is an online tool which helps to calculate taxes based on the income of an individual based on the announcement of Union Budget 2023-24. Individuals falling under the taxable income bracket are liable to pay a specific portion of their net annual income as tax.
Announcing the budget for the financial year beginning April 1, 2023, Finance Minister Nirmala Sitharaman said, “We are also making the new income tax regime the default tax regime. However, citizens will continue to have the option of availing the benefits of the old tax regime.” According to the announcement, taxpayers opting for the new regime will get exemption if their income does not exceed Rs 7 lakh per annum.
The finance minister also allowed standard deduction of Rs 50,000 under the new regime which was already available in the old tax regime. The basic exemption limit has been increased from Rs 2.5 lakh to Rs 3 lakh. The old tax regime prescribed a basic exemption limit of Rs 2.5 lakh.
The move will save Rs 33,800 for those earning up to Rs 7 lakh annually and opting for the new tax regime. Those earning up to Rs 10 lakh will save Rs 23,400 and those earning up to Rs 15 lakh will save Rs 49,400.
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