Income Tax New Regime vs Old Regime Calculator Online 2023-24: In the new budget, Finance Minister Nirmala Sitharaman has given a big relief to the income tax payers. By changing the tax slabs, the burden of income tax on large sections has been reduced. But the benefit of low tax will be available only in the new tax regime. Not only this, the Finance Minister has also retained the old tax regime. In such a situation, questions must be arising among the income tax payers regarding which is good in the old and new tax system. We are telling the way to remove this confusion, through which you will be able to get an idea that which tax regime will be beneficial for you.
First know what is the difference between the new tax slab and the old one
The most important thing has happened that there is no tax up to Rs 3 lakh in the new tax regime. Along with this, the Finance Minister has announced that those having annual income up to Rs 7 lakh will get the benefit of rebate and will not have to pay any tax. Apart from this, the number of tax slabs has been reduced from 6 to 5 in the new system.
Apart from this, the exemption of Rs 1.50 lakh under 80C will not be available in the new tax system. That is, the benefits of PPF, EPF, children’s education fees, HRA and life insurance policy will not be available. Apart from this, the benefit of health insurance premium will not be available under 80D. At the same time, tax exemption is available on interest up to Rs 2 lakh on home loan. Such benefits will not be available in the new tax regime.
Understand maths on the basis of income
| salaried | 8 lakh rupees income | Rs 9 lakh income | Income is Rs 10 lakh | |||
|---|---|---|---|---|---|---|
| old regime | new regime | old regime | new regime | old regime | new regime | |
| gross income | 8 lakhs | 8 lakhs | 9 lakhs | 9 lakhs | 10 lakh | 10 lakh |
| standard deduction | 50,000 | 50,000 | 50,000 | 50,000 | 50,000 | 50,000 |
| 80C | 1.50 lakh | no option | 1.50 lakh | no option | 1.50 lakh | no option |
| health insurance premium | 25,000 | no option | 25,000 | no option | 25,000 | no option |
| taxable income | 5,75000 | 7.5 lakh | 6,75,000 | 9 lakhs | 7,75,000 | 10 lakh |
| net tax | 28,600 | 31,200 | 49,400 | 41,600 | 70,200 | 54,600 |
Know what is the tax slab in the new regime
| New tax slab | New tax rate |
| up to 3 lakh | 0% |
| 3-6 lakhs | 5% |
| 6-9 lakhs | 10% |
| 9-12 lakhs | 15% |
| 12-15 lakhs | 20% |
| more than 15 lakh | 30% |
