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The Income Tax division on Monday launched a “tax calculator” software on its web site to help an assessee compare savings under the new tax regime provisions, as introduced within 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 division tweeted.
While asserting the Budget for the monetary yr starting April 1, 2023, Finance Minister Nirmala Sitharaman stated, “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.”
As per the announcement, taxpayers choosing the new regime will get a rebate and not have to pay any tax if their revenue doesn’t exceed ₹7 lakh each year.
The Finance Minister additionally allowed a normal deduction of ₹50,000 under the new regime, a provision that’s already accessible within the old tax regime. The primary exemption restrict has been raised to ₹3 lakh from ₹2.5 lakh. Under the old tax regime, the essential exemption restrict stays ₹2.5 lakh.
