The Income tax department released a ‘tax calculator’ in order to help an assessee decide if the new income tax regime announced in the Budget 2023 is good or if the old one is better. The tax calculator is live on the income tax department’s portal.
“Tax Calculator is now live! A dedicated tax calculator to check Old Tax Regime vis-à-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,” according to a tweet by the tax department.
The tool will help in evaluating taxes on a person’s income based on Union Budget 2023-24 announcement. Announcing the budget, Finance Minister Nirmala Sitharaman said, “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.”
Taxpayers opting for the new regime will get a rebate if their income does not exceed ₹7 lakh per annum as per the announcement. Moreover, a standard deduction of ₹50,000 under the new regime will be allowed which is already available in the old tax regime. The basic exemption limit has been raised to ₹3 lakh from ₹2.5 lakh. A ₹2.5 lakh basic exemption limit is prescribed in the old tax regime.