New Income Tax Calculator as per Section 115BAC in Finance Bill 2023: Save more with Old Regime

 

Section 115BAC Income Tax Calculator as per Finance Bill 2023: 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).

Read More: ITR filing Last Date 2023-2024: Due date to file Income Tax Return

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.

The tax calculator can be accessed at – https://incometaxindia.gov.in/Pages/tools/115bac-tax-calculator-finance-bill-2023.aspx

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)

Screenshot of the new tax calculator shared by Income Tax Department.

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.c

5. Income other than salary and Special Rate Income

6. Interest on Self Occupied Property

Read More: Old Vs New Tax Regime: IT Portal Likely To Show Which One Fits For You, Says Report

  • 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.

Example:

Let’s assume the Gross salary of an individual is Rs 10 lakh after deducting allowances exempted under both regimes. Further, this individual is investing Rs 1.5 lakh under Section 80C and paying an interest amount of Rs 2 lakh for a self-occupied property. The calculator shows that this individual will have a tax liability of Rs 33,800 under the old regime and Rs 54,600 under the New Regime. Thus, Old Regime will provide this individual with a tax saving of Rs 20,800.

Source :
Msn

RELATED ITEMS:, , , , 

Comments

Post a Comment

Popular posts from this blog

Senior Citizen Train Ticket Discount: Government has issued a new statement regarding giving discount to senior citizens on train tickets, know the details here

Image
  Senior Citizen Train Ticket Discount: Once again a demand has been made in the Lok Sabha to give discount to senior citizens on train tickets. Senior Citizen Train Ticket Discount:  Railways has withdrawn the discount given to senior citizens on train tickets since the Corona period. However, from time to time there has been a demand to restore this concession given to senior citizens in trains. Even in the winter session of the Lok Sabha, some members raised the demand for increasing fare concessions and facilities for senior citizens traveling in trains. However, even before this, Railway Minister Ashwini Vaishnav has told in the Lok Sabha that during the train journey, every passenger is given an average subsidy of 53 percent on the train ticket. Apart from this, he also told who gets discount on tickets while traveling by train. Demand for discount in train tickets raised again During Zero Hour in the House, Janata Dal (United) MP Kaushalendra Kumar said that before the ...
Read more

Cash Transaction Rules: Income tax rules on cash transaction between Husband-Wife and Son-Father, know rules

Image
  Cash Transaction Rules: Income tax keeps an eye on our every transaction. But is there any tax on cash transactions or can Income Tax send a notice? Or how much cash transaction can take place between you and your wife or between father and son? If you also have these questions in your mind, then let us know their answers… If you also transact money between father and son or between husband and wife, then this news is useful for you. Actually, every transaction of ours has an eye on income. In such a situation, a question arises in the minds of many people whether income tax notice can be received even on cash transactions? Let us know how much cash transaction you can do in your family. Income tax sends notice? According to tax experts, if you give money every month for household expenses or give money as a gift, then the wife is not liable for income tax. Both these types of amounts will be considered as the income of the husband. The wife will not receive any notice from the I...
Read more

Have a Current/Savings Bank Account? Know the Cash Deposit Limits under Income Tax Act to avoid Penalties and Notices

Image
  Adhering to cash deposit and withdrawal limits is crucial to remain compliant with the Income Tax Act in India. This article aims to elucidate the various facets of cash-related regulations, encompassing savings and current accounts, fixed deposits, credit card bill payments, real estate transactions, and more.  Cash Deposit Limits in Savings and Current Accounts The Indian Income Tax Act imposes specific regulations on significant cash deposits in savings accounts. Individuals accumulating INR 10 lakh or more during a fiscal year must notify tax authorities.  For current accounts, this threshold is set higher at INR 50 lakh. Although not immediately taxed, financial institutions report transactions exceeding these limits.  Cash Withdrawal and TDS under Section 194N  Section 194N outlines TDS rules for cash withdrawals. A 2% TDS is levied on withdrawals exceeding INR 1 crore within a fiscal year. Non-filers face a 2% TDS on withdrawals over INR 20 lakh and a 5...
Read more