The Income Tax department on Monday released a “tax calculator” tool on its website to help an assessee compare savings under the new tax regime provisions, as announced in the Budget, and the old regime.
“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,” the Income Tax department tweeted.
While announcing the Budget for the financial year beginning April 1, 2023, 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.”
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As per the announcement, taxpayers opting for the new regime will get a rebate and not have to pay any tax if their income does not exceed ₹7 lakh per annum.
The Finance Minister also allowed a standard deduction of ₹50,000 under the new regime, a provision that is already available in the old tax regime. The basic exemption limit has been raised to ₹3 lakh from ₹2.5 lakh. Under the old tax regime, the basic exemption limit remains ₹2.5 lakh.
