“Explore the old vs new income tax regime for FY 2023-24. Compare tax slabs, benefits, exemptions, and deductions to determine which regime is better for you. Make an informed decision with expert insights.”
In the Finance Bill, 2023 New Tax Regime has been introduced with some benefits compared to earlier New Tax Regime. Earlier New Tax Regime was not so attractive, but the Latest amendment made that new regime more attractive to shift from Old Regime for majority of the individuals who are earning gross salary of 15.5 lakhs.
Coming to the Tax Slabs:
New Tax Regime (For FY 2023-24)
| Net Taxable Income | Tax Rate | |
|---|---|---|
| Up to Rs. 3 Lakh | Nil | |
| 3 Lakh to 6 Lakh | 5% on income which exceeds Rs. 3 Lakh | |
| 6 Lakh to 9 Lakh | Rs. 15,000 + 10% on income more than Rs. 6 Lakh | |
| 9 Lakh to 12 Lakh | Rs. 45,000 + 15% on income more than Rs. 9 Lakh | |
| 12 Lakh to 15 Lakh | Rs. 90,000 + 20% on income more than Rs. 12 Lakh | |
| Above 15 Lakh | Rs. 150,000 + 30% on income more than Rs. 15 Lakh | |
Old Tax Regime (For FY 2023-24)
| Net Taxable Income | Tax Rate | |
|---|---|---|
| Up to 2.5 Lakh | Nil | |
| 2.5 Lakh to 5 Lakh | 5% on income which exceeds 2.5 Lakh | |
| 5 Lakh to 10 Lakh | Rs. 12,500 + 20% on income more than 5 Lakh | |
| Above 10 Lakh | Rs. 1,12,500 + 30% on income more than 10 Lakh | |
Old Vs New Regime Benefits
| Particulars | Old Regime | New Regime |
|---|---|---|
| Net Income for Rebate eligibility | ₹ 5 Lakh | ₹ 7 Lakh |
| Standard Deduction | ₹ 50,000 | ₹ 50,000 |
| Tax-Free Salary without any Investments | ₹ 5 Lakh | ₹ 7.5 Lakh |
| Rebate u/s 87A (Maximum Amount) | ₹ 12,500 | ₹ 25,000 |
| Exemptions | ||
| Exemption for House Rent Allowance (HRA) u/s 10(13A) | Yes | No |
| Leave Travel Allowance (LTA) u/s 10(5) | Yes | No |
| Food Allowance u/s 10(14) | Yes | No |
| Exemption on Voluntary Retirement 10(10C) | Yes | Yes |
| Exemption on Gratuity u/s 10(10) | Yes | Yes |
| Exemption on Leave Encashment u/s 10(10AA) | Yes | Yes |
| Transport Allowance for a Specially abled Person | Yes | Yes |
| Other Deductions | ||
| Professional Tax u/s 16(iii) | Yes | No |
| Interest on Home Loan u/s 24b on Self-Occupied/Vacant Property | Yes | No |
| Interest on Home Loan u/s 24b on Let-out Property | Yes | Yes |
| Deductions under Chapter VI-A | ||
| Deductions u/s 80C | Yes | No |
| NPS Self Contribution u/s 80CCD(1B) | Yes | No |
| NPS Self Contribution u/s 80CCD(2) | Yes | Yes |
| Health Insurance Premium – 80D | Yes | No |
| Interest on Education Loan – 80E | Yes | No |
| Interest on Electric Vehicle Loan – 80EEB (Max 1,50,000) | Yes | No |
| Donation to Political Party/ Trust etc., – 80GGC/80G | Yes | No |
| Savings Bank Interest u/s 80TTA/80TTB | Yes | No |
| Disabled Individual – 80U | Yes | No |
| Dependent Disability – 80DD and 80DDB | Yes | No |
*In the Case of Employees, always you will have an option to choose any regime before filing of your Income Tax Returns, if you file within due date.
*If a Person is having deductions/exemptions of more than 3.75 Lakhs then Old Regime is beneficial.
*Person having income above 15 Lakhs New Regime is beneficial only when the deductions are less than 3.75 lakhs.
Download excel calculator for determining Better tax regime
Download chart for comparing determining Better tax regime
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The Author is a Practicing Chartered Accountant and can be reached at 9000786310 and [email protected].
Hi..
Nice Article, very informative.
Need more information on NPS Self contribution u/s 80CCD (2) and the
maximum limit to claim for Tax deductions under New regime.
Thanks,
SUSHMA
I don’t hav any website as I am individual tax payer nd I am aged 70 yrs.pl share template of I tax forecast for the yr 2023-24.
Okay Sir, I will prepare and share to your mail soon
Sir,
Can you guide how we can file TDS return through Income tax portal.
Hi Sir, you can connect me through my mail or WhatsApp number mentioned at the end of the above article. Thankyou
Hi sir.,
Good efforts.., you made our jobs easy..please share the template..
thanks
Hi Srinath Thanks for Reading the Article. Please check, I have updated the download link for the Excel in the above article.
Your Article is good
Please share comparison Income Tax Calculator with old and New regime
Hi Sir, Please check your Inbox
Thank you bro, its very much useful to refer while working – thanks
Hi Sir, Please check your Inbox
Nice work …. appriciate ……please share excel template for calculation of income tax
Hi Sir, Please check your Inbox
Dear Mr. Kopparapu,
Thank you for your comparison between Old and New Tax Regime. Could you please share the Excel calculation file with me too?
Hi Sir, Please check your Inbox
Please share excel template for calculation of Income Tax.
Thanks for reading….Sure Sir the excel Income Tax calculator will be shared to your mail in sometime.
Hi Sir, Please check your Inbox