Old vs. New Income Tax Slab: Salary Is Best for A.Y.2024-25 and checks your tax liability by this Excel Utility for the F.Y.2023-24 and A.Y.2024-25

  

Old vs. New Income Tax Slab – Everyone's eyes are on the tax slab and the budget. Currently, there are

 two income tax slabs in the country. There are different provisions in both cases. If a person's salary is

 50 thousand, then how much tax will be deducted from the new or old tax slab? Let us tell you this.

Therefore, 

Budget 2023: The general budget will be presented on February 1. The fiscal year 202-23 is about to

 end. This time, people are hoping that the income tax exemption offer will come out of Finance

 Minister Nirmala Sitharaman's box.

 In other words,

Everyone's eye remains on the tax slab and the budget. Currently, there are two income tax slabs in the

 country. There are different provisions in both cases. If a person's salary is 50 thousand, then how

 much tax will be deducted from the new or old tax slab? Let us tell you this.

However, 

Two tax slabs

Speaking of changing tax sheets, in past budget sessions people have been disappointed. Currently,

 there are two tax systems in the country. The first system is called the Old Tax Slab. To provide relief

 to taxpayers, in 2020, the government introduced a new tax slab to make filing ITR easier. To this end,

 they also began to develop a new system. However, despite bringing in a new slab, the government

 retained the old tax slab.

How much tax of the old system on 50 thousand salaries?

For instance, If the monthly salary is Rs 50 lakhs and there is no other source of income, the annual

 income will be Rs 6 lakhs. If you opt for the above system, a deduction of up to Rs 1.5 lakh is available

 under Section 80C of the Income Tax (IT Act 80C). Employed persons also get the benefit of the

 standard deduction of Rs 50,000.

Under the old system, there is no income tax up to 2.5 lakhs. A 5% tax is required on income between

 Rs 2.5 lakh and Rs 5 lakh. But after the discount of Rs 12,500, it becomes zero. That is, according to

 this slab, no tax will be due on income up to Rs 5 lakh.

5,00,000(Income) – 5,00,000(Net Tax Deduction)= 0 Tax

How will the tax be saved on an income of Rs 6 lakhs in the new tax system?

Under the new tax system, income up to Rs 2.50 lakh is tax-free, but after that, Rs 2.5 lakh will be

 taxed at 5%, which is equivalent to Rs 12,500. A tax of Rs 24,400 is applied to wages up to Rs 6 lakhs

. If the income is more than Rs 5 lakh and Rs 1 lakh, then that amount of Rs 1 lakh will fall under the

 10% bracket. In this case, a tax of Rs 10,000 will be applied. Likewise, a rate of 4% will be applied to

 the liquidated tax. If the tax is Rs 12,500 then the tax will be Rs 900.

How will the income from 6 shortfalls be tax-free?

Below 80C, cashback up to Rs 1.5 lakh is available. For this, you can invest in NSC, ELSS, PPF, and

 EPF. Apart from this, if you contribute Rs 50,000 to the National Pension System (NPS), you will get

 an additional deduction of Rs 50,000 in 80CCD (1B). Home loan borrowers can save Rs 2 lakh

 separately.

• Income 6,00,000-1,50,000 (PPF, EPF) = 4,50,000

• 4,50,000-50,000 rupees (NPS) = 4,00,000 rupees

• 4,00,000-2,00,000 (mortgage loan) = 2,00,000 (tax free) .

Download and Prepare Income Tax All in One for the Non-

Government Employees for the Financial Year 2023-24 and

 Assessment Year 2024-25[This Excel tools prepare at a time your

 Tax Computed Sheet + Automatic H.R.A. Exemption

 Calculation U/s 10(13A) + Auto Fill Income Tax Form 16 Part

 A&B and Form 16 Part B + Form 12 BA]

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Don't take FD of any amount from any bank, take advantage of these rules and know the trick with Automatic Income Tax Software in Excel for the A.Y.2023-24 & A.Y.2024-25

 Fixed deposit rate – If you are planning to take a fixed deposit ie. FD, you need to know a few things

 before you invest any money. If you invest in the smart investor's way, you will not only earn more

 interest, but you will also get many other benefits.

 

Due to features such as favorable interest rates, low risk of money sinking, and withdrawals whenever you want, fixed deposit is a preferred investment tool by investors. If you invest in FD wisely by understanding the banking rules properly, then not only will you get more returns (FD return) but the chance of sinking your money will also be zero. Even if the bank fails, you will get your cake back. Some savvy investors use these three strategies to enjoy more interest and liquidity than others.

 

Not that the bank has given them anything separate. They just change the way you invest in FD. They take due advantage of the rules made by the Reserve Bank and make risk-free investments. If you also adopt these three smart methods while investing your money in FD, you will also reap many benefits.

 You may also like- The Automatic Calculate Income Tax Arrears Relief Calculator with Form 10E from the F.Y. 2000-2001 to F.Y.2023-24

Don’t invest any money in FD

 

You don’t have to invest all your money in just one FD. Divide the amount you want to invest in the FD. Instead of investing all your money in a fixed amount that lasts the same amount of time, divide the money into three tranches. Invest your money in a variety of short-term deposits.

Do FD in different banks

 

There are also differences in banks’ FD interest rates. Smaller banks tend to pay more interest than bigger banks. So instead of getting FD from one bank, you should get FD from different banks. You can get an FD for a small fee from a small bank. One advantage of having an FD with multiple banks is that if one bank fails, you don’t lose all your money.

 

Guaranteed money of Rupees Five lakh is available on bank deposits. This guarantee is provided by the Deposit and Credit Guarantee Corporation (DICGC), a subsidiary of RBI. You will get back only Rupees Five Lakh. If you have accounts in several branches of the same bank and the amount deposited in them is more than five lakhs, even then only five lakhs of rupees will be refunded to you. So you can secure your money by having FD in different banks.

 

Focus on the duration

 

You don’t invest your money in FD. FD accounts were also opened in several banks. But if you make it by mistake, you would not achieve the full benefit. Especially interest and liquidity. This does not diversify the FD holding. You have to invest your money in FD of different terms with different banks. If you invest in 1-year, 3-year, and 5-year fixed-term deposits, you will earn more interest and the money will also come to you at regular intervals.

 

There are differences in interest rates for FDs of different terms. By setting up an FD like this, you will need your money in three ways and it will be more than the interest you will earn by investing in the FD for the same period. If we invest in multi-holding FDs, then one or the other of our FDs will continue to mature at shorter intervals.

 

Because of this, we will not face any shortage of funds. Also, if we need money suddenly, we can withdraw from an FD in between. Because our entire fund is invested in different trenches, the loss from early withdrawal is minimal.

Download Automatic Calculate Income Tax Preparation Software All in One in Excel for the Non-Government Employees for the F.Y.2023-24 and A.Y.2024-25 as per Budget 2023

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Download Auto Calculate 50 Employees Master of Form 16 Part B for the F.Y.2023-24 and A.Y.2024-25 with New income tax Slab for the 2023-24

 Download Auto Calculate 50 Employees Master of Form 16 Part B for the F.Y.2023-24 and A.Y.2024-

25 with new income tax blocks for FY 2023-24, discounts: Finance Minister Nirmala Sitharaman

 amended the new income tax plan blocks while presenting the 2023-23 Union budget to make it more

 attractive.

 She also announced that the new income tax system will be the default option for taxpayers, starting in

 the 2023-24 tax year.

 

The new tax year will begin on April 2, 2023. Apart from announcing new slabs in the new income tax system, Nirmala Sitharaman has also allowed the salaried class or taxpayers to claim three deductions. Let's take a quick look at the deductions allowed in the new income tax system.

 

The new personal income tax deduction system, rules

 

1. New income tax rebate 2023-24: Standard deduction in New Tax Regime

 

In the wages and pensioners exemption, the government has provided a standard deduction of Rs 50,000 that can be claimed on salary and pension. The standard deduction is a flat deduction from gross pay, which means taxpayers do not have to file a separate application to claim the standard deduction.

 

Download and Prepare at a time 50 Employees Automatic Income Tax Form 16 Part B for the financial year 2023-24 and the Assessment Year 2024-25

 

Feature of this excel utility:-

 

1) This Excel utility can prepare 50 employees at a time, Form 16, Part B, according to the 2023-24 budget

 

2) This utility can be used by government and non-government concerned

 

3) Calculate your income tax automatically according to the New and Old Tax Regime

 

4) This excel utility contains all the income tax sections according to the Income Tax Act.

 

5) This excel utility can only be used as an excel file

 

6) This excel utility can be used by anyone and is easy to use.

 

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Form 16 A and B- the two sides you need to know| With Auto Calculate and Auto Prepare Form 16 Part B and Part A&B both for the F.Y.2022-23 in Excel

 Form 16 A and B- the two sides you need to know| Attention all salaried employees in India! Are you

 ready to discover the mystery behind the Salary?

 Certificate Form 16? This important document not only summarises your income but also contains the

 key to your tax deduction. But wait, did you know that there are two TDS certificates, Form 16A, and

 Form 16B? Each section provides unique information about your finances that you need to learn to

 accurately prepare your tax returns. So get ready to dive into the exciting world of Form 16 and check

 out the exciting features of Form 16 A and Form 16 B.

 

What is Form 16A?

 

Form 16A is an important document in the Indian income tax system. It works as documents supplied by the employer to the employees as documents of taxes deducted at source (TDS) on payments other than salary, such as rent, professional fees, commissions, interest, and more.

Download and Prepare at a time 100 Employees Form 16 Part B for the Financial Year 2022-23amd Assessment Year 2023-24

 

This certificate contains important information, including the name of the deductor and drawee and PAN, method of payment, the amount paid, and TDS deducted and deposited with the government.

 

Form 16A is very useful as a franchise as it allows you to claim TDS credit while filing your tax returns. Without this certificate, you could end up paying more tax than you should.

 

Who issues form 16A?

 

Form 16A is not issued to employers but to financial institutions, entities, or individuals who have deducted tax at source on their non-salary income. For example, if you have received interest income from fixed deposits, mutual fund appreciation, insurance commission, or self-employment, you may receive a Form 16A from the deductor.

Download and Prepare at a time 100 Employees Form 16 Part A&B for the Financial Year 2022-23amd Assessment Year 2023-24

 

What are the features of Form 16A?

 

Form 16A is the reference document for anyone looking to get a clear picture of their Tax Deduction at Source (TDS) in India. This TOS statement is an inexhaustible source of information including the following details:

Name and address of deductor (entity deducting tax at source).

Permanent Account Number  (PAN) of Assee

TAN(Tax Deduction Account Number) of the Employee

Name and address of deductible (income tax deductible).

Franchise PAN of the franchise.

Type of payment for which TDS is deducted (for example, rent, commission, interest, etc.).

The amount paid by the franchise

Amount of TDS deducted

Date of deduction of TDS

Date of filing of TDS with the government.

Assessment year for which TDS is deducted.

Download and Prepare at a time 50 Employees Form 16 Part B for the Financial Year 2022-23amd Assessment Year 2023-24

 

What is Form 16B?

 

Form 16B is an important document in the Indian income tax system. It serves as a certificate issued by the drawer to the drawee as proof of tax deducted at source (TDS) on the sale of real property, such as land, buildings, or real estate.

This certificate contains important information, including the name and PAN of the deductor and deductible, the address of the property, the amount paid for the property, and the TDS deducted and deposited with the government.

 

Form 16B is very important for a franchisee as it allows you to claim TDS credit while filing your tax returns. Without the document, they could end up paying more taxes than they should.

 

Thus, Form 16B serves as proof that TDS has been deducted and credited to the government and allows you to claim TDS credit, which reduces your tax.

Who issues form 16B?

 

Form 16B is issued to the home buyer or the person responsible for deducting TDS on behalf of the buyer. The buyer has to deduct TDS at the rate of 1% and submit Form 16B to the seller.

Download and Prepare at a time 50 Employees Form 16 Part A&B for the Financial Year 2022-23amd Assessment Year 2023-24

 

When is Form 16B filed?

 

Form 16B must be issued within 15 days after the completion of source-linked tax declaration verification. Buyers can download Form 16B from the TRACES website after submitting the TDS return in Form 26QB.

What information is contained in Form 16B?

 

Form 16B is the reference document for anyone looking to get a clear picture of their Tax Deducted at Source (TDS) on the sale of real estate in India. This TOS statement is an inexhaustible source of information including the following details:

Name and address of the deductor (purchaser of real estate).

PAN (Permanent Account Number) of the deductor

French name and address (actual real estate seller).

Revocable PAN

The address of the property sold

The amount paid for the property

Amount of TDS deducted

Date of deduction of TDS

Date of filing of TDS with the government

Reference year for n an it

Download and Prepare One by One Form 16 Part B for the Financial Year 2022-23 and Assessment Year 2023-24

 

TDS is deducted

Form 16B Benefits

Here are some of the benefits of Form 16B:

1. Proof of TDS: Form 16 B is the proof of taxes deducted at source (TDS) on the sale of the property. It serves as a document for the buyer to prove that TDS has been deducted and deposited with the government.

 

2. Tax compliance: According to the Income Tax Act, TDS is to be deducted on the sale of real estate. By issuing Form 16B, the deductor complies with the tax laws and avoids any legal penalties or judgments.

 

3. Simple Property Transaction Processing – Buyer can act efficiently

on property transaction by submitting form 16B to the registrar’s office while the property is being registered. This helps avoid any delay or inconvenience in the registration process.

 

4. Help in filing income tax returns: Form 16B provides all the necessary details required for the buyer to claim credit of TDS deducted while filing his income tax returns.

 

5. Similar to Valid Document: Form 16B is a valid document containing all necessary details of TDS deducted and deposited. It can be used as proof of payment in the event of a dispute or legal proceedings.

 

Download and Prepare One by One Form 16 Part A&B and Form 16 Part B for the Financial Year 2022-23amd Assessment Year 2023-24

 

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Form 16 A and B- the two sides you need to know| With Auto Calculate and Auto Prepare Form 16 Part B and Part A&B both for the F.Y.2022-23 in Excel

 Form 16 A and B- the two sides you need to know| Attention all salaried employees in India! Are you

 ready to discover the mystery behind the Salary?

 Certificate Form 16? This important document not only summarises your income but also contains the

 key to your tax deduction. But wait, did you know that there are two TDS certificates, Form 16A, and

 Form 16B? Each section provides unique information about your finances that you need to learn to

 accurately prepare your tax returns. So get ready to dive into the exciting world of Form 16 and check

 out the exciting features of Form 16 A and Form 16 B.

 

What is Form 16A?

 

Form 16A is an important document in the Indian income tax system. It works as documents supplied by the employer to the employees as documents of taxes deducted at source (TDS) on payments other than salary, such as rent, professional fees, commissions, interest, and more.

Download and Prepare at a time 100 Employees Form 16 Part B for the Financial Year 2022-23amd Assessment Year 2023-24

 

This certificate contains important information, including the name of the deductor and drawee and PAN, method of payment, the amount paid, and TDS deducted and deposited with the government.

 

Form 16A is very useful as a franchise as it allows you to claim TDS credit while filing your tax returns. Without this certificate, you could end up paying more tax than you should.

 

Who issues form 16A?

 

Form 16A is not issued to employers but to financial institutions, entities, or individuals who have deducted tax at source on their non-salary income. For example, if you have received interest income from fixed deposits, mutual fund appreciation, insurance commission, or self-employment, you may receive a Form 16A from the deductor.

Download and Prepare at a time 100 Employees Form 16 Part A&B for the Financial Year 2022-23amd Assessment Year 2023-24

 

What are the features of Form 16A?

 

Form 16A is the reference document for anyone looking to get a clear picture of their Tax Deduction at Source (TDS) in India. This TOS statement is an inexhaustible source of information including the following details:

Name and address of deductor (entity deducting tax at source).

Permanent Account Number  (PAN) of Assee

TAN(Tax Deduction Account Number) of the Employee

Name and address of deductible (income tax deductible).

Franchise PAN of the franchise.

Type of payment for which TDS is deducted (for example, rent, commission, interest, etc.).

The amount paid by the franchise

Amount of TDS deducted

Date of deduction of TDS

Date of filing of TDS with the government.

Assessment year for which TDS is deducted.

Download and Prepare at a time 50 Employees Form 16 Part B for the Financial Year 2022-23amd Assessment Year 2023-24

 

What is Form 16B?

 

Form 16B is an important document in the Indian income tax system. It serves as a certificate issued by the drawer to the drawee as proof of tax deducted at source (TDS) on the sale of real property, such as land, buildings, or real estate.

This certificate contains important information, including the name and PAN of the deductor and deductible, the address of the property, the amount paid for the property, and the TDS deducted and deposited with the government.

 

Form 16B is very important for a franchisee as it allows you to claim TDS credit while filing your tax returns. Without the document, they could end up paying more taxes than they should.

 

Thus, Form 16B serves as proof that TDS has been deducted and credited to the government and allows you to claim TDS credit, which reduces your tax.

Who issues form 16B?

 

Form 16B is issued to the home buyer or the person responsible for deducting TDS on behalf of the buyer. The buyer has to deduct TDS at the rate of 1% and submit Form 16B to the seller.

Download and Prepare at a time 50 Employees Form 16 Part A&B for the Financial Year 2022-23amd Assessment Year 2023-24

 

When is Form 16B filed?

 

Form 16B must be issued within 15 days after the completion of source-linked tax declaration verification. Buyers can download Form 16B from the TRACES website after submitting the TDS return in Form 26QB.

What information is contained in Form 16B?

 

Form 16B is the reference document for anyone looking to get a clear picture of their Tax Deducted at Source (TDS) on the sale of real estate in India. This TOS statement is an inexhaustible source of information including the following details:

Name and address of the deductor (purchaser of real estate).

PAN (Permanent Account Number) of the deductor

French name and address (actual real estate seller).

Revocable PAN

The address of the property sold

The amount paid for the property

Amount of TDS deducted

Date of deduction of TDS

Date of filing of TDS with the government

Reference year for n an it

Download and Prepare One by One Form 16 Part B for the Financial Year 2022-23 and Assessment Year 2023-24

 

TDS is deducted

Form 16B Benefits

Here are some of the benefits of Form 16B:

1. Proof of TDS: Form 16 B is the proof of taxes deducted at source (TDS) on the sale of the property. It serves as a document for the buyer to prove that TDS has been deducted and deposited with the government.

 

2. Tax compliance: According to the Income Tax Act, TDS is to be deducted on the sale of real estate. By issuing Form 16B, the deductor complies with the tax laws and avoids any legal penalties or judgments.

 

3. Simple Property Transaction Processing – Buyer can act efficiently

on property transaction by submitting form 16B to the registrar’s office while the property is being registered. This helps avoid any delay or inconvenience in the registration process.

 

4. Help in filing income tax returns: Form 16B provides all the necessary details required for the buyer to claim credit of TDS deducted while filing his income tax returns.

 

5. Similar to Valid Document: Form 16B is a valid document containing all necessary details of TDS deducted and deposited. It can be used as proof of payment in the event of a dispute or legal proceedings.

 

Download and Prepare One by One Form 16 Part A&B and Form 16 Part B for the Financial Year 2022-23amd Assessment Year 2023-24

 

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All employees get a tax exemption of Rs 50 thousand U/s 16(ia) in any tax regime.| With Auto Calculate Income Tax Preparation Software in Excel All in One for the Govt and Non-Govt Employees for the F.Y.2023-24 and A.Y.2024-25 as per Budget 2023

 All employees get a tax exemption of Rs 50 thousand U/s 16(ia) in any tax regime.| If you are also a

 taxpayer, then this information will be very useful to you. As everyone knows, this time the

 government gave a big relief to the taxpayer in the budget. The government announced that those

 earning less than Rs 7 lakhs will not have to pay income tax. However, this benefit will only be

 available to those who opt for the new tax regime. The Finance Minister has increased the income tax

 exemption limit to Rs 7 lakh in the new tax regime, which was earlier Rs 5 lakh. While under the

 previous tax regime, income up to Rs 2.5 lakh was tax-free.

You may also like- Master of Form 16 PartB in Excel for the Financial Year 2022-23 and Assessment Year 2023-24[This Excel Utility can prepare at a time 50 Employees form 16 Part B]

 

However, under the old tax regime, there is a provision for several standard deductions and exemptions on certain items. These benefits were not provided under the new tax regime. But let us tell you that this time the standard deduction has also been included in the new tax system. That is, regardless of the new or old tax regime, all taxpayers can benefit from the Rs 50,000 tax credit.

He gets a tax exemption of 50 thousand

 

Explain that a taxpayer can claim up to Rs 50,000 for a standard deduction whereas any employee with an income of Rs 15.5 lakh or more will get a benefit of Rs 52,500 as a standard deduction. Under the new tax regime,

You may also like- Master of Form 16 Part A&B in Excel for the Financial Year 2022-23 and Assessment Year 2023-24[This Excel Utility can prepare at a time 50 Employees form 16 Part A&B]

 

What is the standard deduction?

 

The standard deduction was introduced in the budget for the year 2018. Earlier, the limit was Rs 40,000 which was increased to Rs 50,000 the following year. The purpose of this is to maximize income to employees by giving them tax exemption. The standard deduction is a deduction taken from an income taxpayer’s income and then tax is calculated on the remaining income.

 

Employees and retirees are already being given the opportunity to enjoy tax exemption through standard deductions. Suppose the annual income of an employed person is Rs 8 lakh. In such a situation, if a standard deduction benefit up to Rs 50,000 is available in the total package, their tax will be calculated at Rs 7,50,000 instead of Rs 8 lakh.

Download Automated Income Tax Preparation Excel-Based Software All in One for the Government & Non-Government (Private) Employees for the F.Y.2023-24 and A.Y.2024-25

Feature of this Excel Utility:-

 

1) This Excel utility prepares and calculates your income tax as per the New Section 115 BAC (New and Old Tax Regime)

 

2) This Excel Utility has an option where you can choose your option as a New or Old Tax Regime

 

3) This Excel Utility has a unique Salary Structure for Government and Non-Government Employees Salary Structure.

 

4) Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E from the F.Y.2000-01 to F.Y.2023-24 (Update Version)

 

5) Automated Income Tax Revised Form 16 Part A&B for the F.Y.2023-24

 

6) Automated Income Tax Revised Form 16 Part B for the F.Y.2023-24

 

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Which is better- the old or new tax regime? With Auto Calculate Income Tax Preparation Excel Based Software All in One for the Non Government (Private) Employees for the F.Y.2023-24 and A.Y.2024-25

  Which is better- the old or the new tax regime? The Budget 2023 for the current financial year brought

 a major change for the assessee by introducing the new tax regime as voluntary compliance for all

 taxpayers.

 Although a private individual can choose to switch to the old tax regime if he/she wishes. There are

 advantages and disadvantages to both the old tax regime and the new tax regime, but it can be

 confusing for taxpayers to choose the most appropriate regime for themselves. Let us examine the

 various aspects to be considered in the old tax regime and the new tax regime in F.Y 2023-24.

You may also like- At a time 50 Employees Auto Calculate and automatic Preparation Income Tax Form 16 Part B for the Financial Year 2022-23 and Assessment Year 2023-24

Under the new tax regime

 

The new tax regime has increased the range of tax rates from 0% to 30% with a minimum exemption of up to Rs 3 lakhs and the maximum tax rate of 30% applicable from Rs.15 lakhs. The new income tax rates are listed below:

 

INCOME TAX SLAB RATES IN THE NEW TAX REGIME 2023-24

ANNUAL INCOME	NEW TAX REGIME
0-3 Lakhs	Nil
3-6 Lakhs	5%
6-9 Lakhs	10%
9-12 Lakhs	15%
12-15 Lakhs	20%
Above 15 Lakhs	30%

 

Highlights of the New Tax Regime 2023-24

 

1. The new tax regime is voluntary compliance for the year 2023-24.

2. A person earning Rs. 7 without annual entitlement to abatement.

3. Higher rate of surcharge on income above Rs. 5 crores reduced from 37% to 25%.

4. In order to simplify complicated paperwork and reduce the burden of compliance and administration on the taxpayer and tax authorities regarding tax deductions and exemptions, fewer deductions were made.

5. Some tax deductions not allowed under the new tax regime are available

A. Waiver of Travel Allowance

B. Rental Assistance

C. Educational Assistance for Children

D. Exemption for employment taxes

E. Interest on home loans

F. Deduction for specified

6. No stringent rules and regulations for your investments under the new tax regime.

You may also like- At a time 50 Employees Auto Calculate and automatic Preparation Income Tax Form 16 Part A&B for the Financial Year 2022-23 and Assessment Year 2023-24

 Comparison between the old tax regime and new tax regime

As announced in the 2023-24 investment budget, the new tax regime has been imposed by default, but still an individual can choose between the old tax regime and the new tax regime if he/she wishes. If you want to claim deductions and exemptions, the old tax regime is more favorable, otherwise, the new tax regime has multiple levels of income brackets and rates.

 

The key point to understand here is which tax regime allows you to take home more money.

 

Let us take an example to understand the situation in both lights, Mr. Suresh earns Rs. 50,00,000 per annum. He is claiming a deduction under section 80C against LIC and EPF for Rs. 1,50,0 He has taken out health insurance for which he pays a premium of Rs 25,000 which he claims as tax deductible under section 80 D. He also claims a tax-free traveling allowance of Rs.38,000 and rent allowance of Rs. 1,60,0 Let’s calculate the tax due in both cases.

 

Understand with the help of illustration 1 of New and old tax regimes for taxpayers:-

Illustration	Old Tax Regime	New Tax Regime
Income From Salary	50,00,000	50,00,000
Less:- Exemptions House Rent Allowance Leave Travel Allowance	(1,60,000) (38,000)	Not Allowed Not Allowed
Gross Total Income	48,02,000	50,00,000
Less:- Standard Deduction	(50,000)	(50,000)
Less Deduction U/s Chapter VI-A (EPF +LIC+ Tuition Fees, etc)	(1,50,000)	Not Allowed
Less:- Deduction U/s 80D If Senior Citizen -Rs 50000 otherwise Rs. 25000 Maximum Allowed.	(25,000)	Not Allowed
Less:- Other Deduction If any	Allowed	Not Allowed
Net Taxable Income	45,77,000	49,50,000

 

Note: - Assume that the taxpayer is less than 60 years of age.

 

 

B. Total taxes payable under the new and old tax regimes

 

Tax Calculation Slab	Old Tax Regime Rates	Tax (Old) Amount	Tax Calculation Slab	New Tax Regime Rates	Tax (New) Amount
0 – 2,50,000	0%	Nil	0 – 3,00,000	Nil	Nil
2,50,000 - 5,00,000	5%	12,500	3,00,000 - 6,00,000	5%	15,000
5,00,000 -10,00,000	20%	1,00,000	6,00,000 - 9,00,000	10%	30,000
Above 10,00,000	30%	10,73,100	9,00,000 - 12,00,000	15%	45,000
			12,00,000-15,00,000	20%	60,000
			Above 15,00,000	30%	10,35,000
Total Tax		11,85,600	Total Tax		11,85,000
Add: Higher Education Cess @4%		47,424	Add: Higher Education Cess @4%		47,400
Total Tax payable		12,33,024	Total Tax payable		12,32,400

 

As the example above shows, people take home more money under the new tax system, but the situation will be different if the amount of additional payments and deductions are higher. It is therefore advisable to calculate your tax due under both regimes. 

Download Automated Income Tax Preparation Excel-Based Software All in One for the Government & Non-Government (Private) Employees for the F.Y.2022-23 and A.Y.2023-24

 

Feature of this Excel Utility:-

 

1) This Excel utility prepares and calculates your income tax as per the New Section 115 BAC (New and Old Tax Regime)

 

2) This Excel Utility has an option where you can choose your option as a New or Old Tax Regime

 

3) This Excel Utility has a unique Salary Structure for Non-Government Employees Salary Structure.

 

4) Automated Income Tax Form 12 BA

 

5) Automated Income Tax Revised Form 16 Part A&B for the F.Y.2023-24

 

6) Automated Income Tax Revised Form 16 Part B for the F.Y.2023-24

7) Automated House Rent Exemption Calculation U/s 10(13A)

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