Introduction: The Finance Bill 2024, presented on February 1, 2024, brought forth significant updates in the tax landscape. Notably, there were no changes to the income tax slabs for individuals, maintaining consistency between the Old and New Regimes. This article delves into the Income Tax Calculator spanning the last 28 years from FY 1997-98 to FY 2024-25. Additionally, it provides insights into the Finance Bill 2024 and assists individuals in navigating the choice between the old and new tax regimes.
In this budget no changes was made in income tax slabs for individuals and it remains as below:
| Old Regime | New Regime | |
|---|---|---|
| Assessment Year | 2025-26 | 2025-26 |
| Basic Exemption upto Rs | Rs 2,50,000 | Rs 3,00,000 |
| Tax @ 5% | Rs 2.50 lac to 5 Lacs | Rs 3 lac to 6 Lacs |
| Tax @ 10% | Not Applicable | Rs 6 lac to 9 Lacs |
| Tax @ 15% | Not Applicable | Rs 9 lac to 12 Lacs |
| Tax @ 20% | Rs 5 Lac to 10 Lacs | Rs 12 lac to 15 Lacs |
| Tax @ 25% | Not Applicable | Not Applicable |
| 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 |
| 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 25,000 or actual tax payable) for Individual having Total Income <= Rs 7 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 also asked by the employer to their employees for the purpose of deducting TDS.
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 2023-24) but does not opt for new regime in any other financial year (say 2026-27) then in the lifetime he can’t opt for new regime again.
Hope users will find this article and attachment useful.
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