We know the budget finance bill 2022 was presented on 1st February 2022.

In this budget no changes was made in income tax slabs for individuals and it remains as below:

Old Regime New Regime
Assessment Year 2023-24 2023-24
Basic Exemption upto Rs Rs 2,50,000 Rs 2,50,000
Tax @ 5%  Rs 2.50 lac to 5 Lacs Rs 2.50 lac to 5 Lacs
Tax @ 10%  Not Applicable Rs 5 lac to 7.5 Lacs
Tax @ 15%  Not Applicable Rs 7.5 lac to 10 Lacs
Tax @ 20% Rs 5 Lac to 10 Lacs Rs 10 lac to 12.50 Lacs
Tax @ 25% Not Applicable Rs 12.50 lac to 15 Lacs
Tax @ 30% in Excess of Rs 10 Lacs in Excess of Rs 15 Lacs
Surcharge  @10% if Total Income > 50 Lacs but <=1 Crore
@ 15% If Total Income > Rs 1 Crore but <= Rs 2 crore,
@ 25% If Total Income > Rs 2 Crore but <= Rs 5 crore,
@ 37% If Total Income > Rs 5 Crore
 @10% if Total Income > 50 Lacs but <=1 Crore
@ 15% If Total Income > Rs 1 Crore but <= Rs 2 crore,
@ 25% If Total Income > Rs 2 Crore but <= Rs 5 crore,
@ 37% If Total Income > Rs 5 Crore
Health and Education Cess  @ 4%  @ 4%
Deduction u/s 87A Lower of (Rs 12,500 or actual tax payable) for Individual having Total Income <= Rs 5 Lacs Lower of (Rs 12,500 or actual tax payable) for Individual having Total Income <= Rs 5 Lacs

Often people find it very confusing to decide whether to opt for old tax regime or new tax regime (w.e.f FY 2020-21). The same questions is asked by the employer to their employees.

In the attached tax calculator help sheet is given which will assist a person to decide whether to opt for old tax regime or new tax regime at the time of opting with employer or filing return.

The only limitation with new tax regime is that though a person (other than having business or profession income) can opt for the same in each financial year, however a person having income from business or profession can opt only once in the life time. If he opts for new regime in a financial year (say FY 2020-21) but does not opt for new regime in any other financial year (say 2021-22) then in the lifetime he can’t opt for new regime again.

Above provision for new tax regime is summarized below:

Particulars Salaried or other person (Not having Income from business or profession) Individual having Income from business or profession
Declaration to employer He can declare his choice of old or new regime of taxation to employer. However he can change his mind at the time of filing return (i.e he declared old regime to employer, however can file return under new regime at the time of filing return) Not applicable
Selection of regime in each financial year He can select old or new regime in each financial year. For example in FY 2020-21 he can choose new regime of taxation and in FY 2021-22 he may chose old regime and again in FY 2022-23 can choose either of the regime. He can select new regime in any financial year. However once chosen new regime and then shifted to old regime then in the life time he can not opt for new regime again. For example: If he opts for new regime in a financial year (say FY 2020-21) but does not opt for new regime in any other financial year (say 2021-22) then in the lifetime he can’t opt for new regime again.

The attached tax calculator is a very useful tool to calculate tax by using excel only (i.e can be used offline as well). It contains the rate of Income tax for last 26 financial year (i.e Financial year 1997-98 to 2022-23) and income tax calculator for last 17 years (i.e Financial year 2006-07 to 2022-23) for Individuals (i.e including the rates proposed under finance Bill 2022)

This also contains comparison between tax liability between old and new scheme as introduced w.e.f FY 2020-21.

As mentioned earlier the attached sheet also contains help document to calculate income under old and new regime and thereby helps in comparing tax under old and new regime and file return accordingly.

Hope users will find this useful.

Access Denied! Only Regstered Users Can Download The File "Income Tax Calculator for last 26 year from FY 1997-98 to 2022-23". Register Here or Login

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