Income Tax Calculator as Per Budget 2023 ,New regime Vs old Regime which is beneficial (2023)

Income Tax Calculator as per Budget 23 Announcements The recent Budget 23 announced several changes in the tax regime, making it crucial fo...

Income Tax Calculator as per Budget 23 Announcements

The recent Budget 23 announced several changes in the tax regime, making it crucial for individuals to understand how the changes will affect their tax liability. One of the best ways to keep track of these changes is by using an Income Tax Calculator. This tool helps in calculating your tax liability based on the latest tax rates and exemptions. With the help of a tax calculator, individuals can make informed decisions about their investments and expenses, and plan their finances accordingly.

In this blog post, we will be discussing the recent changes in the tax regime and how an Income Tax Calculator can be used to calculate your tax liability. We will also compare the two tax regimes- the old regime and the new regime to determine which is more beneficial.

Please Share If you like the Income Tax calculator After Budget 2023. Fill Only yellow Cell, where ever required. May Not Work In Mobile. Example data is given under the calculator

Based On the Calculator We have Created Various Case scenarios

A: In these cases, we have taken Saving u/s 80C as 150000 and Standard Deduction 50000/- and have calculated the Tax under the Old Regime, new regime after /before budget-2023 with various income levels of Rs 500000,700000,900000,10 Lakh, 12 lakh, 15 Lakh, and 20 Lakh

Sr No	Particulars	Sample example	New Regime Budget-23	Old Regime Budget-23	New regime Before Budget
1	Gross Income	500000	500000	500000	500000
2	Standard Deduction	50000	50000	50000
3	80C Saving schemes	150000		150000
4	80CCD(1B) NPS
5	80D Medical
12	Total Deduction (2-11)	200000	50000	200000
13	Net Taxable Income (1-12)		450000	300000	500000
14	Tax on Above Income
15	Cess :4% (On Sr No 14)
16	Surcharge
17	Gross tax payable (14+15+16)
18	Same Tax under Both Regime

Sr No	Particulars	Sample example	New Regime Budget-23	Old Regime Budget-23	New regime Before Budget
1	Gross Income	700000	700000	700000	700000
2	Standard Deduction	50000	50000	50000
3	80C Saving schemes	150000		150000
4	80CCD(1B) NPS
5	80D Medical
12	Total Deduction (2-11)	200000	50000	200000
13	Net Taxable Income (1-12)		650000	500000	700000
14	Tax on Above Income				32500
15	Cess :4% (On Sr No 14)				1300
16	Surcharge
17	Gross tax payable (14+15+16)				33800
18	Same Tax under Both Regime

Sr No	Particulars	Sample example	New Regime Budget-23	Old Regime Budget-23	New regime Before Budget
1	Gross Income	900000	900000	900000	900000
2	Standard Deduction	50000	50000	50000
3	80C Saving schemes	150000		150000
4	80CCD(1B) NPS
5	80D Medical
12	Total Deduction (2-11)	200000	50000	200000
13	Net Taxable Income (1-12)		850000	700000	900000
14	Tax on Above Income		40000	52500	60000
15	Cess :4% (On Sr No 14)		1600	2100	2400
16	Surcharge
17	Gross tax payable (14+15+16)		41600	54600	62400
18	New regime is beneficial

Sr No	Particulars	Sample example	New Regime Budget-23	Old Regime Budget-23	New regime Before Budget
1	Gross Income	1000000	1000000	1000000	1000000
2	Standard Deduction	50000	50000	50000
3	80C Saving schemes	150000		150000
4	80CCD(1B) NPS
5	80D Medical
12	Total Deduction (2-11)	200000	50000	200000
13	Net Taxable Income (1-12)		950000	800000	1000000
14	Tax on Above Income		52500	72500	75000
15	Cess :4% (On Sr No 14)		2100	2900	3000
16	Surcharge
17	Gross tax payable (14+15+16)		54600	75400	78000
18	New regime is beneficial

Sr No	Particulars	Sample example	New Regime Budget-23	Old Regime Budget-23	New regime Before Budget
1	Gross Income	1200000	1200000	1200000	1200000
2	Standard Deduction	50000	50000	50000
3	80C Saving schemes	150000		150000
4	80CCD(1B) NPS
5	80D Medical
12	Total Deduction (2-11)	200000	50000	200000
13	Net Taxable Income (1-12)		1150000	1000000	1200000
14	Tax on Above Income		82500	112500	115000
15	Cess :4% (On Sr No 14)		3300	4500	4600
16	Surcharge
17	Gross tax payable (14+15+16)		85800	117000	119600
18	New regime is beneficial

Sr No	Particulars	Sample example	New Regime Budget-23	Old Regime Budget-23	New regime Before Budget
1	Gross Income	1500000	1500000	1500000	1500000
2	Standard Deduction	50000	50000	50000
3	80C Saving schemes	150000		150000
4	80CCD(1B) NPS
5	80D Medical
12	Total Deduction (2-11)	200000	50000	200000
13	Net Taxable Income (1-12)		1450000	1300000	1500000
14	Tax on Above Income		140000	202500	187500
15	Cess :4% (On Sr No 14)		5600	8100	7500
16	Surcharge
17	Gross tax payable (14+15+16)		145600	210600	195000
18	New regime is beneficial

Sr No	Particulars	Sample example	New Regime Budget-23	Old Regime Budget-23	New regime Before Budget
1	Gross Income	2000000	2000000	2000000	2000000
2	Standard Deduction	50000	50000	50000
3	80C Saving schemes	150000		150000
4	80CCD(1B) NPS
5	80D Medical
12	Total Deduction (2-11)	200000	50000	200000
13	Net Taxable Income (1-12)		1950000	1800000	2000000
14	Tax on Above Income		285000	352500	337500
15	Cess :4% (On Sr No 14)		11400	14100	13500
16	Surcharge
17	Gross tax payable (14+15+16)		296400	366600	351000
18	New regime is beneficial

B. If we Increase deductions, Saving 80C 150000, 80CCD NPS 50000, and 80D 25000 not available under the new regime Then tax in the old and New regimes under various Income particulars will be as under.

Sr No	Particulars	Sample Data	New Regime Budget-23	Old Regime Budget-23	New regime Before Budget
1	Gross Income	700000	700000	700000	700000
2	Standard Deduction	50000	50000	50000
3	80C Saving schemes	150000		150000
4	80CCD(1B) NPS	50000		50000
5	80D Medical	25000		25000
12	Total Deduction (2-11)	275000	50000	275000
13	Net Taxable Income (1-12)		650000	425000	700000
14	Tax on Above Income				32500
15	Cess :4% (On Sr No 14)				1300
16	Surcharge
17	Gross tax payable (14+15+16)				33800
18	Same Tax under Both Regime

Sr No	Particulars	sample data	New Regime Budget-23	Old Regime Budget-23	New regime Before Budget
1	Gross Income	900000	900000	900000	900000
2	Standard Deduction	50000	50000	50000
3	80C Saving schemes	150000		150000
4	80CCD(1B) NPS	50000		50000
5	80D Medical	25000		25000
12	Total Deduction (2-11)	275000	50000	275000
13	Net Taxable Income (1-12)		850000	625000	900000
14	Tax on Above Income		40000	37500	60000
15	Cess :4% (On Sr No 14)		1600	1500	2400
16	Surcharge
17	Gross tax payable (14+15+16)		41600	39000	62400
18	Old regime is Better for You

Sr No	Particulars	Sample data	New Regime Budget-23	Old Regime Budget-23	New regime Before Budget
1	Gross Income	1200000	1200000	1200000	1200000
2	Standard Deduction	50000	50000	50000
3	80C Saving schemes	150000		150000
4	80CCD(1B) NPS	50000		50000
5	80D Medical	25000		25000
12	Total Deduction (2-11)	275000	50000	275000
13	Net Taxable Income (1-12)		1150000	925000	1200000
14	Tax on Above Income		82500	97500	115000
15	Cess :4% (On Sr No 14)		3300	3900	4600
16	Surcharge
17	Gross tax payable (14+15+16)		85800	101400	119600
18	New regime is beneficial

Budget 23 Announcements

Increased Rebate Limit: The rebate limit has been increased to Rs. 7 lakh in the new tax regime, which means that persons with income up to Rs. 7 lakh will not have to pay any tax.

Change in Tax Structure: The tax structure has been changed in the new personal income tax regime by reducing the number of slabs to five and increasing the tax exemption limit to Rs. 3 lakh. The new tax rates range from nil for income up to Rs. 3 lakh to 30% for income above Rs. 15 lakh.

Extension of Standard Deduction: The benefit of standard deduction has been extended to the new tax regime, providing relief to the salaried class and pensioners including family pensioners.

Reduced Maximum Tax Rate: The highest surcharge rate has been reduced from 37% to 25% in the new tax regime for income above Rs. 2 crore, reducing the maximum tax rate to 39% from 42.74%.

Extension of Tax Exemption on Leave Encashment: The limit of tax exemption on leave encashment has been extended to Rs. 25 lakh on retirement of non-government salaried employees, in line with the government salaried class.

Income Tax Calculator

An Income Tax Calculator is an online tool that helps individuals in calculating their tax liability based on the latest tax rates and exemptions. To use an Income Tax Calculator, individuals need to input their salary details, exemptions, deductions, and investments. Based on this information, the calculator will calculate the tax liability, and provide a detailed break-up of the tax payable.

Using an Income Tax Calculator is simple and hassle-free. All you need to do is to enter your income details, and the calculator will do the rest. You can also compare the tax liability under the old regime and the new regime to determine which is more beneficial.

Comparison between the old regime and the new regime

As mentioned earlier, Budget 23 Modified a new tax regime with lower tax rates but limited exemptions and deductions. The new regime offers lower tax rates, but it also eliminates several exemptions and deductions that were available under the old regime.

To determine which regime is more beneficial, individuals can use an Income Tax Calculator. The calculator will calculate the tax liability under both regimes, and compare the results. Based on the comparison, individuals can decide which regime is more beneficial for them.

Excel Online Calculator

In addition to using an online Income Tax Calculator, individuals can also use an Excel-based Income Tax Calculator. We have created an Excel-based Income Tax Calculator, which can be accessed online. The input data can be entered in the yellow cells, and the calculator will provide the tax liability under both regimes.The Download will be available soon

Conclusion

In conclusion, the Budget 23 announced several changes in the tax regime, making it crucial for individuals to understand their tax liability. Using an Income Tax Calculator is an easy and efficient way to keep track of these changes and make informed decisions about your finances. The new tax regime offers lower tax rates, but it also eliminates several exemptions and deductions. Individuals can use an Income Tax Calculator to compare the tax liability under both regimes and determine which is more beneficial for them.