The new regime, launched within the Union Budget 2020-21, however, provides concessional charges
The revenue tax calculator is accessible on the tax division’s official web site.
Filing revenue tax is usually a lengthy and tiring course of particularly when you’re doing it for the primary time. Further, the necessity to decide on between the outdated and new regime could make the method all of the extra sophisticated for you. So, what to do? To simplify the method of submitting taxes, the revenue tax division has launched a tax calculator.
This calculator may also show you how to select which IT regime is for you. It provides you the choice to calculate and examine your complete tax legal responsibility in each regimes. All it’s good to do is submit the required data associated to wage and deduction.
The outdated tax regime means that you can declare a number of deductions and exemptions whereas calculating the tax legal responsibility. The new regime, launched within the Union Budget 2020-21, however, provides concessional charges. However, if you happen to go for the New Tax regime, you’ll have to forgo sure exemptions and deductions accessible within the present outdated tax regime.
Why Use an Income Tax Calculator?
Calculating your revenue tax permits protecting your funds in examine. Having an concept of how a lot tax you’d be required to pay provides you a transparent picture to type out your bills and saving. Taxpayers choosing the brand new regime will get a rebate if their revenue falls below Rs 7 lakh bracket.
As per the Budget 2023 announcement, this can embody a Rs 50,000 customary deduction which was additionally a part of the outdated tax regime. Additionally, the fundamental exemption restrict has been raised to Rs 3 lakh from Rs 2.5 Lakh accessible within the outdated tax regime.
So, these choosing the brand new tax regime could have a saving of Rs 33,800 if their revenue falls below Rs 7 lakh annual revenue bracket. And in case your annual revenue is as much as Rs 10 lakh, this saving might be Rs 23,400. The saving would shoot as much as Rs 49,400 for individuals incomes as much as Rs 15 lakh yearly.
How To Use Income Tax Calculator?
The revenue tax calculator is accessible on the tax division’s official web site.
Tax Calculator is now live!
A dedicated tax calculator to check Old Tax Regime vis-Ã -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.
Pl check the link below:https://t.co/dy04iY4oj5 pic.twitter.com/JF4VfmXQw4
— Income Tax India (@IncomeTaxIndia) February 20, 2023
While utilizing it, you may be requested to submit the next data
– Taxpayer kind
– Male / Female / Senior Citizen / Super Senior Citizen
– Residential Status
– Income aside from wage and Special Rate Income
– Interest on Self-Occupied House Property ( Deductions allowed below each regimes i.e. 80CCH(2), 80CCD(2), 80JJAA, household pension deduction below part 57(iia and Deductions/exemptions (aside from talked about above) not eligible in new tax regime)
– Income From Self Occupied House Property
– Gross Total Income
– Less Eligible Income
– Total Income
Taxpayers should observe that the IT division has given a disclaimer additionally relating to the above tax calculator. It has acknowledged that the calculator is barely to allow public to have a fast and a simple entry to fundamental tax calculation and doesn’t purport to present appropriate tax calculation in all circumstances. It is suggested that for submitting of returns the precise calculation could also be made as per the provisions contained within the related Acts, Rules and many others..
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