Tax Calculator: Ever since the exemption limit was increased to Rs 7 lakh in the new tax regime, there has been confusion among taxpayers as to which tax regime would be better.
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Income Tax Calculator: If you file income tax then this information is very important for you. Because ever since the exemption limit was increased to Rs 7 lakh in the new tax regime, there has been confusion among taxpayers as to which tax regime would be better. to help them with Income tax department Has launched tax calculator on its official website. Taxpayers can compare the new and old tax regime by visiting the Income Tax Department website to see how much tax they will have to pay under the new tax regime and the old tax regime.
Taxpayers need to enter information related to their salary and deductions to do the comparison. The tax calculator will then show the tax savings under both the arrangements. Taxpayers should note that the new tax regime will be the default option for them. However, one can opt for the old tax regime.
Taxpayers can access online
The Income Tax Department has already issued Income Tax Return (ITR) forms for Individuals, HUF and others. The tax calculator can be accessed online by the taxpayers on the portal of the department. The department made this announcement through a tweet about the tax calculator. 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 site of IT.
A dedicated tax calculator to check the old tax treatment as per section 115BAC for Individual/HUF/AOP/BOI/Artificial Juridical Person (AJP) can now be accessed on the website of the IT Department.
Please check the link given here.
https://incometaxindia.gov.in/Pages/tools/115bac-tax-calculator-finance-bill-2023.aspx
The option of the old tax system will remain
Presenting the Union Budget 2023 on February 1, Union Finance Minister Nirmala Sitharaman announced new tax slabs in the new tax regime and scrapped the old twin-structure system. The government had announced the new income tax regime in the 2019 Union Budget. Sitharaman has increased the exemption limit from Rs 5 lakh to Rs 7 lakh for individual taxpayers, she said that we are also making the new income tax system as a default tax system. However, citizens will continue to have the option of availing the benefits of the old tax regime. The Finance Minister also allowed standard deduction of Rs 50,000 under the new regime which was already available in the old tax regime.