Income Tax Calculation for FY 2023-24
Income Tax Calculation for FY 2023-24 can be easily done by using the income tax calculator, and we will see what is the income tax on Old and New Tax regimes for FY 2023-24. Old vs New Tax Regime Which is better for you? You’ll know in this post.
Based on Income Tax Calculation 2023-24, even when your income is Rs. 11 Lakh, you pay zero income tax by using various deductions in old tax regime. And if you want to opt for new tax regime, for income up to Rs. 7.5 Lakh, you don’t have to pay any income tax.
INCOME TAX CALCULATION FORMULA IN EXCEL
The formula for income tax calculation in excel is quite simple and based on the tax slab rates, we can provide the formula for old and new tax regime. Below are the steps to follow:
- For 5% slab rate, check if the income is between 2.5 lakh to 5 lakh
- If yes than on income between 2.5 lakh to your actual income, multiple the difference by 5 and divide by 100
- Similarly, same formula need to be applied for new tax regime
- Now for 20% in old regime, check the difference of income between actual income and 5 lakh
- Multiply this difference by 20 and divide by 100
- In the same way, apply formula in various tax slab rates of old and new regime
WHAT IS INCOME TAX CALCULATOR?
Income Tax calculator is a Free Tax Calculator that helps you in calculating Income Tax based on your Income. You are liable to pay Income Tax to government based on your Income, so this calculator will help you calculate your Income Tax so that you don’t get any surprises and plan accordingly.
- In FY 2022-23, there are 2 tax regimes – Old and New
- When you have certain income, you have to pay income tax on your income you generate in a FY (Financial Year), which is between April month to March month of next year. April 2022 to March 2023 in this case
- During this period, you need to pay income tax on total income you earn in the FY
- Now, based on the 2 tax regimes, you will reach 2 figures of income tax. You can plan and decide which one you should choose to pay less income tax.
- Old Tax Regime – This regime has slab rates that are unchanged from a long time. It allows you to some investment options to help you save income tax by deducting the investment amounts under various sections
- New Tax Regime – This regime was introduced in Budget 2020 and has slightly reduced tax slab rates. This regime was introduced to help you lower the burden of income tax you were paying in previous years using Old tax regime. But new tax regime does not allow any deductions to be claimed if you make any investments, to save more income tax. You pay tax on entire amount you earn in FY.