Welcome to Corporate2Finance, where we strive to simplify your corporate and financial journey. In this blog post, we are excited to present an incredibly useful template– Old vs New Tax Regime Calculator Excel . Designed to not only simplify your Income Tax Calculation process but also Compare your Income Tax for both Old vs New Tax Regime, and help you decide which Tax Regime Would be a better choice for Income Tax FY 2023-24
Table of Contents
Old vs New Tax Regime Calculator Excel - Example
Above snap shows an inference of how our Old vs New Tax Regime calculator excel helps you calculate your taxable income, and Income Tax for FY 2023-24.
It also indicates your probable gain by shifting to New Tax Regime.
How our Old vs New Tax Regime Calculator Excel help:
Salary Breakdown: Easily input Basic Salary, Leave Travel Allowance, and Other Allowances for an automatic calculation of Gross Salary, with a clear view of your income structure.
Employer Contributions: Capture employer contributions, such as accommodation and automotive benefits, alongside PF contributions, factoring them into your overall income.
Section 10 Exemptions: Utilize the third section to record exemptions under Section 10, including Leave Travel Allowance and House Rental Allowance, offering a precise calculation of your eligible exemptions.
Section 16 Exemptions: Declare deductions under Section 16, such as Professional Tax and Standard Deduction (₹50,000), and witness the cumulative impact on your total exemptions.
Additional Income: Account for additional income sources, including earnings from house property and interest on house loans, providing a comprehensive overview of your financial landscape.
Chapter VI-A Deductions: Navigate through detailed sections (80CCC, 80CCD, CCE, 90D) under Chapter VI-A, ensuring a thorough understanding of various deductions, such as life insurance, annuity, and Provident Fund.
Limit on Deductions: Stay informed about the maximum limit of Rs. 1.5 lakh for deductions under Section 80C, including an overview of the respective sections covered.
Comparison: Old vs New Tax Regime: Easily compare your taxable income and total tax liabilities in both the Old and New Tax Regimes, providing valuable insights into the financial implications of each.
User-Friendly Interface: Benefit from a well-organized Excel sheet that guides you through each section, ensuring a user-friendly experience while navigating through complex tax calculations.
Holistic Financial View: Achieve a holistic understanding of your financial standing by incorporating various income sources, deductions, and exemptions, facilitating informed decision-making for tax planning.
Old vs New Tax Slabs:
| Income | Old Tax Regime | Income | New Tax Regime |
|---|---|---|---|
| Rs. 0 to Rs. 2.5 Lacs | 0% | Rs. 0 to Rs. 3 Lacs | 0% |
| Rs. 2.5 Lacs to Rs. 5 Lacs | 5% | Rs. 3 to Rs. 6 Lacs | 5% |
| Rs. 5 Lacs to Rs. 10 Lacs | 20% | Rs. 6 to Rs. 9 Lacs | 10% |
| more than Rs. 10 Lacs | 30% | Rs. 9 to Rs. 12 Lacs | 15% |
| Rs. 12 to Rs. 15 Lacs | 20% | ||
| more than Rs. 15 Lacs | 30% |
New Tax Regime:
Government of India introduced a New Tax Regime in the budget of 2020, wherein they altered the Tax slabs for the taxpayers.
Here’s the breakdown of the key points in a more formal tone:
Tax Slabs: The new system introduces six tax slabs, with zero tax for incomes up to ₹3 lakh. The tax rate gradually increases by 5 percentage points for each incremental ₹3 lakh.
- Up to ₹3,00,000: Nil
- ₹3,00,001 to ₹6,00,000: 5%
- ₹6,00,001 to ₹9,00,000: 10%
- ₹9,00,001 to ₹12,00,000: 15%
- ₹12,00,001 to ₹15,00,000: 20%
- Above ₹15,00,000: 30%
Tax Calculation Example: If your income is ₹10 lakh, the first ₹3 lakh is tax-free. The next ₹3 lakh incurs a 5% tax (₹15,000), the subsequent ₹3 lakh incurs a 10% tax (₹30,000), and the remaining ₹1 lakh is taxed at 15% (₹15,000), resulting in a total tax of ₹60,000.
Exceptions and Deductions: Unlike the old regime, the new system doesn’t allow for claiming certain exemptions. However, there’s a silver lining for salaried individuals who can deduct an additional ₹50,000 from their income as a standard deduction.
Income Threshold: Good news for those earning less than ₹7 lakh—no tax is applicable. Your income remains tax-free under the new regime.
In essence, the new tax regime comes with its nuances, emphasizing simplicity in tax slabs while foreclosing certain exemptions. Stay informed for more updates on navigating the evolving tax landscape.
If you want to study more about the official Tax Rates Visit here
Download Old vs New Tax Regime Calculator Excel here:
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