Excel Calculator to compare Tax under existing / old and new Personal Tax Regime u/s 115BAC for AY 2024-25 (FY 2023-24)
Excel Calculator to compare Tax under existing and new Personal Tax Regime u/s 115BAC. Union Budget 2023-24 has disappointed individual taxpayers who were expecting tax benefits in the form of substantial increase in basic threshold of income tax exemption and increase in deductions particularly in Section 80C of the Income Tax Act, 1961.
However, the Government instead of meeting out any of the expectations, kept the existing tax exemption limit and available deductions/rebates unchanged.
However, for the AY 2024-25, the basic exemption limit for New Simplified Personal Income Tax Regime has been increased to Rs. 3 lakhs and number of tax slabs has bene reduced to five as under:
For the AY 2024-25, the basic exemption limit for New Tax Regime has been increased to Rs. 3 lakhs and number of tax slabs has bene reduced to five as under:
| Up to Rs. 3 lakhs | Nil |
| Income more than Rs. 3 lakhs up to 6 lakh | 5% |
| Income more than Rs. 6 lakhs up to 9 lakh | 10% |
| Income more than 9 lakhs upto 12 lakhs | 15% |
| Income more than 12 lakhs up to 15 lakhs | 20% |
| Income above Rs. 15 Lkahs | 30% |
The Finance Bill 2020 (26 of 2020) has inserted new sections namely section 115BAC to introduce the new Scheme of Taxation on income of Individuals and HUFs.
The Budget 2023-24 proposes to make the New Tax Regime u/s 115BAC as the default one. However the taxpayers shall have an optional to choose old regime.
Unlike the existing tax regime consisting of three taxable slabs with minimum tax rate of 5% and highest being 30%, the New Tax Regime consists of five taxable brackets with minimum tax rate of 5% with 5% incremental rise for each higher tax brackets except for fifth slab where incremental rise is 10%..
A comparative chart of the tax brackets and rates under both Regime is as under:
| Tax Brackets | Tax rate (Existing Regime) | Tax Rate (New Regime) |
| Upto Rs 2.50 Lakhs | Nil | Nil |
| From > Rs. 2.50 lakhs to Rs. 3.00 lakhs | Nil | 5% |
| From > Rs 3 Lakhs to Rs 5 Lakhs | 5% | 5% |
| From > Rs. 5 lakhs to Rs. 6 lakhs | 5% | 20% |
| From >Rs. 6 lakhs to Rs. 9 Lakhs | 10% | 20% |
| From > Rs 9 lakhs to Rs 10 lakhs | 15% | 20% |
| From > Rs. 10 lakh to Rs. 12 Lakhs | 15% | 30% |
| From Rs 12 Lakhs to Rs 15 Lakh | 20% | 30% |
| Above Rs 15 Lakhs | 30% | 30% |
Going by the above table alone, its seems a perfect gift to the taxpayers where tax rates have been slashed and more tax brackets have been provided to reduce the tax burden. But this lucrative New Tax Regime comes with a condition that many taxpayers would not appreciate.
Under the New Tax Regime, the assessee shall not be entitled to most of the exemptions and deductions that a common taxpayers has relied upon extensively not only to make investments but also to plan and reduce his tax. The notable deductions/exemptions that would be unavailable in the new Tax Regime include standard deduction on salaries, housing loan interest, section 80C deductions (for insurance premium, P.F., tuition fees, etc.) etc.
The relief however is that the new Regime is only optional and is totally at the wisdom of the assessee whether to choose it or not.
Taxpayers are in a fix what to do. Whether to continue existing payments towards insurance premium, provident fund etc. or whether defer their housing loan etc. The helpless individual taxpayers which do not have access to a tax expert are finding hard to determine which tax regime is beneficial to them.
The ABCAUS Excel calculator compares tax incidence under the existing tax regime and the proposed New Simplified Personal Tax Regime and attempts to provide a handy tool to the taxpayers to choose their course of action in future.
Personal Tax Regime is now default one. Consequence & precautions for tax payers Read More >> |
Download Excel old and New Tax Regime tax Calculator for AY 2024-25 Click Here >>
(Upldated on 26/06/2023)
Download Excel old and New Tax Regime tax Calculator up to AY 2023-24 Click Here >>
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Standard Deduction on salary income Rs. 50000 FY 2024-25 under new tax regime not considered.
thanks. updated now
Std deduction should be 50000
download updated version
Standard deduction shown in your excel file is restricted to 40000/- , is it not be 50000/-
corrected