The Income Tax Department has released a tax calculator that can be used by taxpayers to calculate their tax liability as per the revised Section 115BAC proposed in Finance Bill 2023.
Under Section 115BAC, the basic exemption limit has been raised from Rs 2.5 lakh to Rs 3 lakh. Moreover, this section was earlier applicable to individuals and HUFs only. As per Finance Bill 2023, this section will now be applicable to Individuals, HUF, the Association of Persons (AOP, other than cooperative societies), the Body of Individuals (BOI), and Artificial Juridical Person (AJP).
Tax Calculator: How it works
The Tax Calculator shared by the Income Tax Department will give you a comparison of tax liability under Old and New Regimes to be applicable from Assessment Year 2024-25.
For Tax Calculator: Click Here
To use this calculator, you will have to provide basic inputs like
1. Taxpayer category (Individual, HUF, AOP/AJP/BOI
2. Age/Gender (Male, Female, Senior Citizen, Super Senior Citizen).
3. Resident Status (Resident, Non-Resident, Not Ordinary Resident)
4. Gross Salary (after deducting allowances exempted under both regimes)
- Amount deductible/exempt from Gross Salary (except standard deduction) which is not allowed in the New Tax Regime.
5. Income other than salary and Special Rate Income
6. Interest on Self Occupied Property
- Deduction allowed under both regimes (80CCH(2), 80CCD(2), 80JJAA, family pension deduction under section 57iia)
- Deductions/exemptions (other than those mentioned above) not eligible in the New Tax Regime
After providing the above details, the tax calculator gives a comparison of tax liability under both Old and New Regimes.