The Income Tax Department on Monday released a ‘tax calculator’ that will help assessors decide if the new income tax regime announced in the Budget is better for them or the old one.
Tax calculator is working on Income Tax Faculty portal.
“Tax Calculator Now Working! A dedicated tax calculator to check the old Tax Mode against the new Tax Scheme for Individuals/HUF/AOP/BOI/Artificial Entities (AJP) under Section 115BAC is available now. can be accessed on the Department’s IT website,” according to a tweet by the tax department.
Income Tax Calculator is an online tool that helps in tax assessment based on one’s income based on union budget Notice 2023-24. Individuals in the taxable income bracket must pay a specific portion of their annual net income as taxes.
While announcing the Budget for the fiscal year commencing April 1, 2023, the Minister of Finance Nirmala Sitharaman We are also making the new income tax regime the default tax regime. However, citizens will continue to have the option to take advantage of the old tax regime’s benefits.
According to the announcement, taxpayers who choose the new regime will receive a discount if their income does not exceed $7 thousand per year.
The finance minister also allows the standard deduction $50,000 under the new regime is already available in the old tax regime. The basic exemption limit has been raised $3 thousand words $2.5 thousand. ONE $The basic duty-free limit of 2.5 lakh was provided in the old tax regime.
The move will result in a savings of $33,800 for those who earn up to $7 lakh annually and the option of a new tax regime. People with income up to $10 lakh will save $23,400 and $49,400 savings will accrue to those who earn up to $15 thousand.
