If you’re questioning whether or not you must select the brand new or previous tax regime for FY 2023-2024 (AY 2024-2025), this free calculator will aid you resolve. The tax slabs had been unchanged within the interim finances introduced on 1st Feb 2024.
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You’ll be able to enter your wage and deduction particulars to find out which is useful. This comparability desk ready by Vinay Vittal offers you an in depth chart of when the brand new tax regime will likely be helpful and when the previous regime will likely be helpful.
As you might know, the brand new tax regime is relevant with no tax deductions in 80C, 80D, and many others. (see full record above). The brand new regime could also be helpful underneath sure circumstances (e.g. when you might have a house mortgage).
In response to the brand new tax regime, if the web taxable revenue is above Rs. 7 lakhs AND if the revenue tax is bigger than taxable revenue minus seven lakhs, then the tax to be paid is = taxable revenue minus seven lakhs.
So within the above instance, the tax earlier than cess is Rs. 25,500, however taxable revenue minus seven lakhs is barely Rs. 5000. So the tax to be paid earlier than cess is the decrease of two or Rs. 5000. With cess, the entire tax is Rs. 5,200. This is named the “second reduction underneath part 87A” The primary reduction is defined right here: Why wage as much as seven lakhs will likely be tax-free from 1st April 2023
This profit applies to a web taxable revenue of Rs. 7.27 lakhs. After that, taxable revenue minus seven lakhs will grow to be larger than the tax earlier than cess, so the latter will likely be used.
New Tax Regime vs Previous Tax Regime
That is the screenshot of the enter web page the place the consumer can modify the black cells.
Word: An ordinary deviation of Rs. 52,500 is relevant within the new tax regime for salaried taxpayers.
A tax rebate is relevant on revenue as much as Rs. 5 Lakhs within the previous regime and as much as 7 lakhs within the new regime from 1st April 2023. This has not been included.
Newest (after Funds modification March 2023): Previous tax regime vs new tax regime (as much as March thirty first, 2023) vs new tax regime (from 1st April 2023) calculator. (please let me know if there are any bugs).
Replace: Reader Balasubrahmanyan has modified the previous tax regime vs the brand new tax regime instrument “to incorporate a number of deductions, particularly employer contribution to NPS.
Additionally, sections to calculate surcharge and marginal reduction are added”.
Use this provided that your revenue is larger than 50L: Previous tax regime vs new tax regime (as much as March thirty first, 2023) vs new tax regime (from 1st April 2023) calculator (please let me know if there are any bugs).
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