Calculate your income tax under new regime in the IT calculator: Check how to use it
New Income Tax System, Income Tax Calculator: The Income Tax Department has released a “Tax Calculator” to help taxpayers calculate tax and determine which tax regime they are comfortable with. The new income tax system was proposed in Budget 2023 by Finance Minister Nirmala Sitharaman.
A dedicated tax calculator is available on the Income Tax website to compare the old and new tax regimes for individuals and everyone as per Section 115 BAC, a tweet from the tax department said.
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What exactly is an online tax calculator?
Depending on a person’s income, taxes can be calculated using an internet tool called an income-tax calculator. Tax on people in the taxable income bracket should be equal to a predetermined proportion of their net annual income.
Advantages of tax calculator
- One can create a financial budget by calculating your income tax.
- One can budget one’s expenses and take appropriate saving decisions when one knows how much tax one has to pay.
- By doing this one can prevent going into debt and overspending.
- One can claim tax deductions for certain expenses while ascertaining income tax.
The Finance Minister approved a baseline deduction of Rs 50,000 under the current tax regime, which was also available under the old tax regime. For individuals opting for the new tax regime and earning up to Rs 7 lakh annually, this decision will result in a saving of Rs 33,800. Rs 23,400 will be saved for income up to Rs 10 lakh, and Rs 49,400 for income up to Rs 15 lakh.
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How to use tax calculator in IT department to calculate income tax?
After logging into the portal the following information will be requested:
– Taxpayer type
-Male, Female, Senior, or Super Senior Citizen
– Status as residence
– No income from salary and special income
-Interest in property with self-occupied property
– Family pension deduction under section 57 and deductions under both rules including section 80CCH(2), 80CCD(2), and 80JJAA (iia) are allowed.
As soon as you submit the above information, the portal will display the figures under the old and new tax regimes.
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