Calculating tax is a task in itself and it becomes even more difficult for a common man, but the government has come up with a solution for this. The government has made this calculator, through which you will be able to do all the maths of tax in a moment.
In Budget 2023, several important announcements were made by Finance Minister Nirmala Sitharaman regarding income tax. In these announcements, a change in income tax slab was also announced by Finance Minister Nirmala Sitharaman and annual income up to Rs 7 lakh was made tax free in the new tax regime.
However, after this there is confusion among the people whether to choose the new tax regime or choose the old tax regime. In such a situation, the Modi government has solved this problem as well.
Income Tax
The Income Tax Department released a ‘Tax Calculator’ to help one decide whether the new income tax regime announced in Budget 2023 is good or the old one is better. The tax calculator is live on the Income Tax Department portal. With its help, it can be calculated that how much tax will be imposed on your income.
Income tax calculator
The Income Tax Department tweeted saying, ‘Tax Calculator is now live! A dedicated tax calculator to check the old tax regime vis-à-vis the new tax regime for Individuals/HUF/AOP/BOI/Artificial Juridical Person (AJP) as per section 115BAC can now be accessed on the Income Tax Department website Is.’
Tax slab
The tax calculator will help to calculate tax on income of an individual based on the Union Budget 2023-24 announcement. Announcing the budget, Finance Minister Nirmala Sitharaman had said, “We are also making the new income tax regime as the default tax regime. However, citizens will continue to have the option of availing the benefits of the old tax regime.”
Exemption limit
Taxpayers opting for the new regime will be exempted if their income as declared does not exceed Rs 7 lakh per annum. Apart from this, standard deduction of Rs 50,000 will be allowed under the new regime, which is already available in the old tax regime.
The basic exemption limit has been increased from Rs 2.5 lakh to Rs 3 lakh. In the old tax regime, the basic exemption limit of Rs 2.5 lakh has been fixed.
