The income tax department has recently launched a new income tax calculator 2023 to provide taxpayers with the facility to find out the tax liability themselves, as per the revised Section 115 BAC proposed in Finance Bill 2023.
Income Tax Calculator 2023 Introduced by Income Tax Department
Recently, Under Section 115 BAC, the base exemption limit has been raised from ₹2.5 lacks to ₹3 lacks. This section, previously, was applied to all the earning individuals and HUFs only. According to the Finance Bill 2023, Section 115 BAC, will now be applicable for:
- The Association of Persons (AOP other than cooperative societies)
- The Body of Individuals (BOI)
- Artificial Juridical Person (AJP)”
How does the Tax Calculator 2023 work?
The tax calculator shared by the income tax department will enable you to calculate the tax liability as per the old and new regime, which is to be in effect from AY 2024-25.
You can use this link to access the tax calculator directly.
However, to use this calculator you will first have to provide some inputs like:
- Taxpayer category (Individual, HUF, AOP/AJP/BOI)
- Age, Gender, etc.
- Resident Status
- Net salary after excluding the allowances which are exempted under both old and new regimes.
- Any income source and amount other than salary.
- Interest earned from any occupied property.
So, after you have provided all the above details you can get your tax liabilities calculated.
For 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, the Old Regime will provide this individual with a tax saving of Rs 20,800. For more clarity, you can use the following Income Tax Calculator,” mentioned by financial express.