Income Tax Calculator 2023-24: New Regime vs Old Regime – which is better?

Income Tax Calculator AY 2023-24: You can calculate your income tax liability for the Assessment Year 2023-24 under Old and New tax regimes by using the following Income Tax Calculator. This will also help you find out which regime is more suitable for you. Finance Minister Nirmala Sitharaman on February 1 2023 proposed a change in Income Tax slabs under Tax Regime. This calculator has been updated as per FM’s announcements.

Note: For Assessment Year 2023-24, you will be filing an Income Tax Return for expenses/income/investments/savings made in FY 2022-23. The tax rates and slabs applicable for AY 2023-24 would be the current tax slab rates. (Also Check: New Tax Regime Calculator)

Income Tax Calculator AY 2023-24

As per FM’s Budget 2023 announcement, revised tax slabs under New Regime will be applicable for FY 2023-24 (AY 2024-25). To know the impact of New Tax Regime slab change, read this.

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Why should you use Income Tax Calculator?

The income Tax Calculator is an important tool to give you an idea of your tax liability depending on your income and investments. This tool can help you plan your tax-saving investments properly so that you can optimize your taxes.

New Regime Income Tax Slab Rates

Following are the currently applicable Income tax slabs and rates for AY 2023-24.

Income Tax Slabs and Rates 2023 (New Regime)

Following are the new tax slabs in the New Tax Regime as per FM Nirmala Sitharaman’s Budget Speech 2023

Income Tax Rates For AY 2023-24 (New Regime)

• 0 to Rs 2.5 lakh: NIL
• Rs 2.5 to Rs 5 lakh: 5% above Rs 2.5 lakh
• Rs 5 lakh to Rs 7.5 lakh: Rs 12,500 + 10% above Rs 5 lakh
• Rs 7.5 lakh to Rs 10 lakh: Rs 37,500 + 15% above Rs 7.5 lakh
• Rs 10 lakh to Rs 12.5 lakh: Rs 75,00- + 20% above Rs 10 lakh
• Rs 12.5 lakh to Rs 15 lakh: Rs 1,25,000 + 25% above Rs 12.5 lakh
• Above Rs 15 lakh: Rs 1,87,500 + 30% above Rs 15 lakh

Income Tax Slabs and Rates 2023 (Old Regime)

There was no change in Tax Slab and Rates under the Old Regime

Income Tax Slabs and Rates for AY 2023-24 (Old Regime)

• Rs 2.5 lakh: NIL
• Rs 2.5-5 lakh: 5% above Rs 2.5 lakh
• Rs 5-10 lakh: 12,500 + 20% above Rs 5 lakh
• Above 10 lakh: Rs 112,500 + 30% above Rs 10 lakh

Income Tax Rates AY 2024-25 (New Regime)

• 0-Rs 3 lakh: Nil;
• Rs 3-6 lakh: 5%
• Rs 6-9 lakh: 10%
• Rs 9-12 lakh: 15%
• Rs 12-15 lakh: 20%
• Above Rs 15 lakh: 30%

Checking your tax liability with the help of the Income Tax calculator can help you save a lot of money annually.