Income Tax Calculator 2023-2024

Individual taxpayers are currently facing confusion regarding the choice between the old and new tax regimes, which were introduced in the Union Budget 2023. While the new regime offers lower slab rates, it requires taxpayers to forego most of the deductions and exemptions available under the old regime. Therefore, in order to make an informed decision, taxpayers must carefully examine both the existing and new tax regimes. To estimate their income tax payable under each regime, they can utilize the new income tax calculator for FY 2023-24, which is user-friendly and cfan provide results in just a few simple steps.

How to Use Income Tax Calculator online for FY 2021-22, FY 2022-23 & FY 2023-24?

To use the online income tax calculator, follow these steps:

1. Go to BusinessLine's website and access the income tax calculator.
2. Choose the financial year you want to calculate taxes for (2021-22 or 2022-23) and select your age range (regular individual, senior citizen, or super senior citizen), then click "Next."
3. Enter your gross income from various sources (salary, interest, rental, other) and click "Next."
4. Input your tax-saving investment details, such as deductions under Section 80C, HRA, medical insurance, NPS, and others, then click "Next" to proceed.
5. Once all information is entered, the calculator will compute your taxes under both the old and new tax regimes.
6. If you haven't reached the maximum limit for Section 80C deductions (Rs. 1.5 lakh), you can save taxes under that section by clicking the "View Plans" button

Tax Brackets and Rates

In India, there are currently two Income Tax regimes, allowing individuals to choose between paying taxes under the new or old regime. The new regime offers lower tax rates for higher income groups. It's important to note that tax slab rates vary based on age, income group, and the chosen tax regime. To determine your tax liabilities, you can use an income tax calculator and consider all of these details. The new income tax slab rates differ from those of the old regime in the following ways:

The new income tax slab rates result in lower taxes for individuals with net taxable income ranging from Rs. 5 lakhs to Rs. 15 lakhs, which can reduce their tax burden.

Income tax rates applicable for individuals aged between 60 and 80 years who are senior citizens:

Under the old tax regime, senior citizens are given a higher exemption limit of Rs. 3 lakh compared to the Rs. 2.5 lakh limit offered under the new tax regime. For super senior citizens above 80 years, the old tax regime offers a higher exemption limit of up to Rs. 5 lakh, while the new tax regime offers a flat income tax exemption limit of Rs. 2.5 lakh regardless of the age of the taxpayer.

How is income tax calculated?

To calculate income tax as per the old income tax slab, you need to follow a few steps. Firstly, calculate your gross taxable income by subtracting your deductions such as HRA, LTA, and standard deduction from your gross salary and adding income from other sources. Secondly, calculate your total tax benefits by investing in tax-saving options such as ELSS and PPF available under section 80C of the Indian Income Tax. Thirdly, calculate your net taxable income by subtracting the total tax benefits from the gross taxable income. Lastly, calculate your total tax liability based on the tax rate applicable to your total taxable income. If your total taxable income is less than ₹5 lakhs, you will get a rebate of ₹12,500 under section 87A. For the new tax regime, deductions/exemptions such as HRA and LTA would be taxable, and you cannot avail tax benefits by investing in tax-saving instruments and other deductions.

Income Tax Calculator FAQs