Income tax calculator for AY 2024-25 with changes proposed by Finance Bill, 2023 released by Income tax department
Finance Bill, 2023 was announced on 01.02.2023 and the major changes announced in that bill for Indidviduals are as under:
Changes in the tax rate for individuals:
No amendment has been proposed in the old Tax regime for Individual and HUF but amendments have been only proposed in New Tax regime.
New tax regime will now be the default tax regime.
Revised New Tax regime for individuals and HUF under section 115BAC:
| OLD Slab Rates (as per sub section 1) | REVISED Slab Rates (as per sub section 1A) | ||
| Up to Rs. 2,50,000 | Nil | Up to Rs. 3,00,000 | Nil |
| From Rs.2,50,001 to Rs.5,00,000 | 5% | From Rs. 3,00,001 to Rs.6,00,000 | 5% |
| From Rs.5,00,001 to Rs.7,50,000 | 10% | From Rs.6,00,001 to Rs.9,00,000 | 10% |
| From Rs.7,50,001 to Rs.10,00,000 | 15% | From Rs.9,00,001 to Rs.12,00,000 | 15% |
| From Rs.10,00,001 to Rs.12,50,000 | 20% | From Rs. 12,00,001 to Rs.15,00,000 | 20% |
| From Rs.12,50,001 to Rs.15,00,000 | 25% | Above Rs.15,00,000 | 30% |
| Above Rs.15,00,000 | 30% | ||
Hence, now tax rate has been reduced in the revised tax regime and also number of slabs has been reduced from 6 to 5.
New Rebate Provision under section 87A:
| Particulars | Current scenario | Amendments |
| Tax rebate under the provisions of section 87A | Total income not exceeding Rs 5 lakh, rebate of 100% tax upto Rs. 12500. | Total income not exceeding Rs. 7 lakh, rebate of 100% tax upto Rs. 25000 |
| This rebate is available only to the persons opting for new regime under section 115BAC. | ||
Standard deduction to salaried employee under New Regime:
A standard deduction of Rs. 50,000 will now be available even to salaried employee who have opted for new tax regime.
Changes in Income Tax for High Net Worth Individuals:
Surcharge reduced from 37% to 25%:
Highest Rate of surcharge has been reduced for persons opting for new regime u/s 115BAC from 37% to 25%. Hence, now any HNI earning more than Rs.2 crore will have to pay surcharge at 25% only.
Income Tax department has incorporated the above changes and prepared a calculator For Individual/ HUF/ AOP/ BOI/ Artificial Juridical Person (AJP) as per section 115BAC proposed by Finance Bill, 2023 to compare OLD REGIME VIS-À-VIS NEW REGIME.
Please note that the calculator shall be applicable for income earned in FY 2023-24
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