Income Tax Calculator: Since the rebate limit in the new tax regime was increased to Rs 7 lakh, there has been confusion among taxpayers about which regime is better. To help them with this, the Income Tax Department has launched a tax calculator on its official website. Taxpayers can compare how much tax they will have to pay in the new tax regime and the old tax regime.
They have to enter information related to their salary and deduction. The tax calculator will then reveal the tax savings under both regimes. Taxpayers should note that the new tax regime would be the default option for them. However, an individual can choose to opt for the old tax regime.
The Income Tax Department has already released income tax returns (ITR) forms for individuals, HUF and others. The tax calculator can be accessed online by the taxpayers on the department's portal. The department made the announcement about the tax calculator through a tweet. Check out the new tax calculator HERE
"Tax Calculator is now live! A dedicated tax calculator to check Old Tax Regime vis-?-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 department wrote on Twitter.
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Union Finance Minister Nirmala Sitharaman while presenting the Union Budget 2023 on February 1 announced new tax slabs in the new tax regime and scrapped the old twin-structure system. The government announced the new income tax regime in the 2019 Union Budget.
Sitharaman has increased the rebate limit for individual taxpayers from Rs 5 lakh to Rs 7 lakh. "We are also making the new income tax regime as the default tax regime. However, citizens will continue to have the option to avail the benefit of the old tax regime," she had said.
The Finance Minister also allowed a standard deduction of Rs 50,000 under the new regime which is already available in the old tax regime.
