Income tax calculator: Check how much tax you will pay for new vs old regime

“Tax Calculator is now live! A dedicated tax calculator to check Old Tax Regime vis-à-vis New Tax Regime for Individual/HUF/AOP/BOI/Artificial Juridical Person(AJP) as per Section 115BAC can now be accessed on the IT Dept website,” read a tweet from the income tax department.

With the tax calculator, available on the income tax department’s website, taxpayers can compare how much tax they will have to pay if they opt for either of the two regime.

Check your tax with Income tax calculator link here

Taxpayers have to enter the required information related to their salary and deduction. The tax calculator will then reveal the tax savings under both regimes. 

However, the tax department has noted that it does not claim to provide correct tax calculations in all cases.

“The above calculator is only to enable public to have a quick and an easy access to basic income tax calculation and does not purport to give correct tax calculation in all circumstances. It is advised that for filing of returns the exact calculation may be made as per the provisions contained in the relevant Acts, Rules etc.,” read the disclaimer below the tax calculator.

Meanwhile, the Central Board of Direct Taxes (CBDT) on February 10 notified income tax return forms 1-6 for individuals, professionals and businesses for income earned in 2022-23.

New vs old tax regime

A standard deduction of ₹50,000  which is already available in the old tax regime was also extended under the new regime in order to make it attractive. The old tax regime that comes with exemptions on certain investments and expenditures will remain attractive for tax payers who pay house rent or have a home loan.

According to Pankaj Mathpal, MD & CEO at Optima Money Managers, individuals who are in job for the last 10-15 years should opt for old tax regime as it provides deductions – HRA exemption, standard deduction, Professional tax, Section 80C, Section 80CCD(1B) and Section 80D. They would lose out on these deductions if they opt for the new tax regime.