A major change introduced in the finance bill 2023 is making the New Income-Tax regime as the default option for all salaried taxpayers, though, with the option to select the old tax regime. The change is an indication of the government’s intention to cease the complicated taxation process with the exemptions and deductions by introducing a simple tax calculation with lower tax rates, in other words, the State wants to tell the taxpayers that, “Give to Caesar the things that are Caesar’s and to God the things that are God’s.” (Mark 12:17).
As our tax payments are supposed to be used by the government for conducting various development projects of the country through welfare schemes including funding of public infrastructure, expansion & welfare projects, and employment programs. Hence it is the responsibility of every individual to remit the due taxes to the Govt, as in return these taxes are expected for the growth of every individual. As Aristotle said, “When the society /organization grows all those who connected it also grow equally, however, if the individuals are growing beyond the society/organization, the entire setup of the State/Society may fail. The Golden Rule mosaic says, “Do Unto Others as You Would Have Them Do Unto You”, every individual is expected to follow this rule to get rewarded as they expect. Remit the due taxes for the development of the State/society and which in turn for growth the benefit of the nation and everyone.
Tax savings are legal, but tax evasion through the loopholes of the tax saving options is to be reviewed based on the following text from Bible; ‘All things are lawful’, but not all things are beneficial. ‘All things are lawful’, but not all things build up” (1 Cor 10:23)
This Article has an Automatic Income Tax Calculator in Excel Format for Financial Year 2023-24 (AY 24-25). The income Tax Calculator is Useful for salaried employees of the government and private sector.
Hope this Tax calculator will help you to Boost your tax plans, wishing you a Happy Financial New Year!
Following are the major changes affecting the taxation of salaried employees, which they need to assess thoroughly and plan their taxes.
1. The new tax regime under Section 115BAC is proposed to serve as the default regime.
2. Standard deduction from salary income and family pension is extended to the employees who opt for New Tax Regime.
3. The revised basic exemption limit will be INR 3,00,000 and for every additional INR 3,00,000 of income, the next slab rate will be applicable. The highest slab rate of 30% shall continue to apply to income above INR 15,00,000.
4. The total income eligible for rebate under Section 87A has increased from INR 5,00,000 to INR 7,00,000 for taxpayers opting for the new tax regime.
5. Under the new tax regime, the highest surcharge rate of 37% on income above INR 5,00,00,000 has been reduced to 25%. Surcharge rates remain the same under Old Regime.
Income tax slabs
| New Regime | Old Regime | |||
| Income Range | Income Tax Rates | Income Range | Income Tax Rates | |
| Up to Rs. 3 Lakh | Nil | Up to Rs. 2.5 Lakh | Nil | |
| Rs. 3 Lakh
– Rs. 6 Lakh |
5% on income exceeds Rs. 3,00,000 | Rs. 2.5 Lakh
– Rs. 5 Lakh |
5% on income exceeds Rs.2.5Lakh | |
| Rs. 6 Lakh
– Rs. 9 Lakh |
Rs. 15,000 + 10% on income exceeds Rs. 6,00,000 | Rs. 5 Lakh
– Rs .10 Lakh |
Rs.12,500+ 20% on income exceeds Rs.5 Lakh | |
| Rs. 9 Lakh
– Rs. 12 Lakh |
Rs. 45,000 + 15% on income exceeds Rs. 9,00,000 | |||
| Rs. 12 Lakh
– Rs. 15 Lakh |
Rs. 90,000 + 20% on income exceeds Rs. 12,00,000 | Above Rs. 10 Lakh | Rs.1,12,500+ 30% on income exceeds Rs.10 Lakh | |
| Above Rs. 15 Lakh | Rs. 150,000 + 30% on income exceeds Rs. 15,00,000 | |||
A comparison of the deductions and exemptions available under the new and the old tax regime is given below. One can decide whether to select Old Regime for New Regime based on what all investments and payments are done / applicable to them.
| Particulars | Old Tax Regime | New Tax Regime |
| Income level for rebate eligibility | ₹ 5 lakhs | ₹ 7 lakhs |
| Standard Deduction | ₹ 50,000 | ₹ 50,000 |
| Effective Tax-Free Salary income | ₹ 5.5 lakhs | ₹ 7.5 lakhs |
| Rebate u/s 87A (Max Amount) | 12,500 | 25,000 |
| Allowable Exemptions | ||
| HRA Exemption | ✓ | X |
| Leave Travel Allowance (LTA) | ✓ | X |
| Food Allowance | ✓ | X |
| Exemption on voluntary retirement 10(10C) | ✓ | ✓ |
| Exemption on gratuity u/s 10(10) | ✓ | ✓ |
| Exemption on Leave encashment u/s 10(10AA) | ✓ | ✓ |
| Transport Allowance for a specially abled person | ✓ | ✓ |
| Other Deductions | ||
| Professional Tax | ✓ | X |
| Interest on Home Loan u/s 24b on self-occupied or vacant property | ✓ | X |
| Interest on Home Loan u/s 24b on let-out property | ✓ | ✓ |
| Deductions Under Chapter VI- A | ||
| Deduction u/s 80C | ✓ | X |
| NPS Self Contribution u/s 80CCD(1B) | ✓ | X |
| NPS Self Contribution u/s 80CCD (2) | ✓ | ✓ |
| Medical insurance premium – 80D | ✓ | X |
| Interest on education loan – 80E | ✓ | X |
| Interest on Electric vehicle loan – 80EEB | ✓ | X |
| Donation to Political party/trust etc – 80G | ✓ | X |
| Savings Bank Interest u/s 80TTA and 80TTB | ✓ | X |
| Disabled Individual – 80U | ✓ | X |
- Go for the New tax regime if income is Rs 7.5 lakh and less – it is a straightforward choice, as there is no tax deduction for individuals having income up to Rs 7.5 lakh.
- If you do not have any tax-saving investments or expenditures.
- Choose the new tax regime if only Rs 1.5 lakh can be claimed as deduction under 80C. An individual who just avail a deduction of Rs 1.5 lakh under section 80C, the new tax regime would be more beneficial.
When does one opt for Old Regime.?
Choose the old tax regime if, apart from 80C deductions, if you are paying housing loan interest or Rent payments or more tax-saving expenditures like medical insurance, NPS payments, and other chapter VI-A deductions.
When Gross Income is 16 lakh and one who has a deduction of 4.25 lakh (Sec 80C- 1.5 lakh, interest on housing loan Rs.2.0 lakh, and Medical Insurance Rs.25,000 and Std. Deduction Rs.50,000), then income tax under both the Old and the New tax regime is the same, i.e. The break-even point for Old and New Tax Regime. When eligible deductions are more, the lower will be the tax liability under old tax regime.
Hope the above-mentioned details are helpful to plan your tax plans.
Please feel free to share your feedback, observations, and inputs to me @ bennythadathil@gmail.com.
Author Bio
The income tax calculator for FY23-34 is not downloading even after logging in. 404 error – page not found…
Please share excel income tax calculator for FY 2024-25 (AY 2025-26)
Please share the utility for the FY 2024-25 asap
Please share Income tax calculator for FY 2024-25 at earliest
Please share Income tax calculator for FY 2024-25 at earliest
Please share Income tax calculator for FY 2024-25 also
Please give the password to unprotect the cells of excel worksheet of Income Tax calculator for FY 2023-24
what is the password to unprotect the sheet
the excel sheet is password protected, wherefrom to get the password, please help
Sir, My sister is a physically challenged person, she is not an employee. Can I claim tax exemption u/s 80dd under old regime? If possible, then how much I claim exemption? Please explain in details.
Your Income tax calculator is very very useful for me…….Thank you.
Hi Benny,
Quite impressive your calculator but for more clearity can I have the protected password of the file please. If possible please share on my ID “gogoi.bolin2018@gmail.com”
Thanks in advance
Regards
B.Gogoi
Hello Benny,
I went to https://incometaxindia.gov.in and use the tool provided to calculate IT liability for FY 2023-24 (AY 2024-25) for income range 9,00,000 – 12,00,000 and found that the standard deduction section, i.e. Standard Deduction (Sec 16 ia) of 50000.00 is not being applied FOR THE NEW TAX REGIME. But in your spreadsheet calculation, it is applied. I HAD downloaded one before, thought you must have updated and so, downloaded again, BUT WITH THE SAME RESULT. KINDLY, CLARIFY WHETHER STANDARD DEDUCTION OF 50,000 IS APPLICABLE IF NEW TAX REGIME IS CHOSEN OR NOT. I THINK ITS IMPORTANT FOR YOUR FOLLOWERS TO KNOW THAT YOU CARE ABOUT THEM ENOUGH TO TAKE THEIR GENUINE QUESTIONS INTO SERIOUS CONSIDERATION AND RESPOND. THANKS.
Std deduction is applicable for new regime from Fy 23-24
In this Tax Calculator New Regime Tax calculation is wrong.
NPS_Employer Contribution is not u/s 80CCD(2) is not added.Please correct it.
Sir,
Income tax calculator excel format has no option to enter for investment in capital gain bond for claiming deduction u/s 54EC
Hi Benny
very well articulated, specially Biblical quotes ..
God bless you
Sir,Please check under new regime ,Rebate is not deducted.Rebate amount is o.This leads tax calculation higher
Sir, please tell, under new tax regime, what are the deductions to State Govt.emplyees and pensioners.
plz sent Income Tax Calculator for FY 2023-24 (AY 2024-25) in excel
HRA CALCULATION NOT WORKING
sir, Income tax Calculator update for new regime deduction for Interest on Home Loan u/s 24bon: Let-out property, All Contributions to Agniveer Corpus fund – 80CCH update
I think result is not perfect in the summary table. If we only take Rs. 750000 as income excluding all other scenario and just Rs. 750000 as income and no deduction, No PF, NOTHING ELSE. then below summary is available which is mesleading. please recheck. Total calculation in tax is ok at the end of excel, just some calculation error in Tax Option review Table at the Top.
Actually at Rs. 750000 income, Tax should be NIL in New regime
Tax Option Review Annual Tax Monthly Tax
Income Tax New Regime 26000.00 2167
Income Tax Old Regime 54600.00 4550
Tax Benefit New Vs Old -28600.00 -2383