Income Tax Calculator

WHAT IS INCOME TAX CALCULATOR FOR FY 2022-23 (AY 2023-24)?

There are two tax regimes – old and new. Under the old regime, all incomes are taxed but certain exemptions and deductions can reduce taxable income and increase tax savings.   

The new tax regime offers 6 income slabs and a lower tax rate but no exemptions or deductions whatsoever.  

Depending on the regime you choose, the Income Tax Calculator AY 2022-23 estimates your tax liability after taking into account all the various factors, in a simple, stress-free and time-saving manner. 

How to Use Income Tax Calculator

1) To calculate income tax, simply enter your details on the IndiaFirst tax calculator online. 

2) Enter your age and the financial year, e.g., 2022-23. 

3) Enter your gross income form all sources, i.e., salary or business, short term and long term investments, FD interest, rents received on property, taxable gifts and others. 

4) Add the details of all the available deductions. 

5) The income tax calculator 2022-23 will calculate income tax online on the basis of both, the old and new tax regime as per the latest regulations. 

6) This will give you an estimate of your tax savings which can be reinvested in IndiaFirst’s tax saving plans. (add link to url) 

How to Calculate Income Tax for FY 2022-23 (AY 2023-24)?

Depending on whether you choose the old or new regime, the income tax calculator shows you how to calculate tax. The old regime offers the advantage of multiple allowances, deductions and expenses. The new regime does not provide these benefits but offers a lower taxation rate. 

Before you choose your regime to calculate income tax online, it is important to understand the difference between the old vs new tax regime calculator. This will help you assess your tax liability. 

Under the new tax regime calculator, individuals with net taxable income between Rs. 5 lakh and Rs. 15 lakh can reduce their liability as they come under the lower income tax slab rate.  

*Tax slab rates for Senior Citizens between 60 to 80 years

*For Individuals above the age of 80 years (Super Senior Citizens)

*Income Tax Slab for New Regime FY 2022-23 (AY 2023-24)

The new tax regime divides tax payers into slabs, which have different tax rates. For individuals under 60 years of age, it is: 

*Surcharge Applicable for Old and New Tax Regime

Taxpayers with a net taxable income exceeding 50 lakhs in FY 2022-23 will have to pay a surcharge based on the income tax slab rates computed for FY 2022-23.  

Calculate Income Tax for the Old Regime

The old regime provides exemptions and deductions under Section 80C, which reduces the taxable income. When using the tax calculator old regime, these must be deducted from the gross income to arrive at the taxable income. The tax payer’s age and income bracket are also important considerations.  

Calculate Income Tax for the New Regime

The new regime offers more tax slabs and lower rates but no exemptions as the old regime. This simplifies calculating your tax liability and the new tax regime calculator makes it easier. 

Eligibility Criteria to File Income Tax

Anyone whose income falls within the tax slabs is eligible to pay tax. This works out to up to Rs. 2.5 lakhs p.a. for those below 60 years old; up to Rs. 3 lakhs p.a. for senior citizens between 60-80 years old; up to Rs. 5 lakhs p.a. for super seniors above 80 years of age. 

Income Tax Exemptions for Salaried Individuals

Deductions and exemptions are only allowed if you file your tax under the old regime. 

1) Standard deduction or INR 50,000 

2) House Rent Allowance  

3) Leave Travel Allowance  

4) Work-related expenses  

5) Deductions under the Income Tax Act such as contributions to NPS, life insurance premium, ELSS, tuition fee, tax-saving FDs, health insurance premiums, home loan repayments, education loan interest payments, contributions to valid charitable organisations, interest accrued on savings account 

Other Income Tax Rule Changes Announced in the Union Budget 2023

Under the new tax regime, tax slab has increased to Rs 7 lakh from the earlier limit of up to Rs 5 lakh. The government also plans to introduce a next-generation Common Income Tax Return (ITR) Form, to save taxpayer’s time and improve the compliance efficiency.

Tips on how to prepare for filing your income tax return according to the New Regime Income Tax Slab

The simplest, economical, and most efficient way to file your Income Tax Return (ITR) is through E-filing. Keep your Form 16, provided by your employer, Pan card, and any proof of investments ready. Then register on the site, https://www.incometax.gov.in/ and follow the steps. The portal can also be used to check the refund, deductions, applicable forms, and the process to file the ITR.

Benefits of Filing Income Tax Online

1) The tax calculator online calculates taxes quickly and easily and offers multiple benefits.  

• 2) Enables faster tax refunds 

• 3) Provides instant confirmation of filing and status updates  

• 4) Offers safety and security 

• 5) Pay at your convenience to avoid any late fee or penalty 

• 6) Provides eligibility to offset losses against present and future investment gains 

• 7) IT Return serves as income and address proof required for visa, loan and insurance application 

What are the exemptions/ deductions that are disallowed under the new tax regime?

• Deduction available under section 80TTA/80TTB. 

• Deduction for entertainment allowance. 

• Leave Travel Allowance.  

• Tax benefit on interest paid on housing loan taken for a self-occupied or vacant house property. 

• Deduction of Rs 15000 allowed from family pension under clause (iia) of section 57. 

• Deductions under section 80C claimed for provident fund contributions, life insurance premium, school tuition fee for children and various specified investments such as ELSS, NPS, PPF etc. 

• Deduction claimed for medical insurance premium under section 80D . 

• Tax benefits for disability under sections 80DD and 80DDB.  

• Tax break on interest paid on education loan under section 80E. 

• Tax break on donations to charitable institutions available under section 80G.  

• All deductions under chapter VIA (like section 80C, 80CCC, 80CCD, 80D, 80DD, 80DDB, 80E, 80EE, 80EEA, 80EEB, 80G, 80GG, 80GGA, 80GGC, 80IA, 80-IAB, 80-IAC, 80-IB, 80-IBA, etc.