In less than a week, since government launched the tax calculator, thousands of taxpayers have logged in to get tax clarity. This calculator was launched to help individuals decide if the new income tax regime announced in the Budget is good for them or if the old one is better.

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Sources told CNBC-TV18 that the tax calculator has managed to help many and still a large number of taxpayers are yet to take the benefit comparing their tax outgo at an authentic webpage, free of cost, launched by the government.

The calculator in the most simplified manner helps the taxpayer to key in basic income details and compares the income of the taxpayer in both old and new regime and gives a calculation in the end as to which regime can help him/her.

As government pushes for easy and early adoption of new simplified and exemption-less tax regime, this calculator has been developed giving an easy, cost free solution to the taxpayers.

In an easy step wise format, any taxpayer can log in the website -- https://incometaxindia.gov.in and click on the “what’s new” window which guides the taxpayer to the tax calculator.

Here is the link -- https://incometaxindia.gov.in/Pages/tools/115bac-tax-calculator-finance-bill-2023.aspx

The calculator is available for Individual/ HUF/ AOP/ BOI/ Artificial Juridical Person (AJP) as per section 115BAC proposed by Finance Bill, 2023. Taxpayer has to key in basic income details, income from other sources, total investments under section 80C and 80D claimed by the taxpayer, etc and the final result reflects the tax savings, if any, under the new regime.

Budget 2023 introduced several changes to the new income tax slab, while making it more attractive for taxpayers.

Not just the Finance Minister, even CBDT Chairman Nitin Gupta said that the tweaked slabs and rates under the new regime are more attractive and beneficial for most of the taxpayers.

As part of the changes, the tax rebate has been extended on income up to Rs 7 lakh as per Section 87A, as against Rs 5 lakh. The basic exemption limit has been raised to Rs 3 lakh from Rs 2.5 lakh. The finance minister also allowed a standard deduction of Rs 50,000 under the new regime which is already available in the old tax regime.

(Edited by : Anshul)